Walker & Dunlop, Inc. announced today that it structured $44,800,000 in financing for the Ambling Portfolio, a collection of eight multifamily properties located throughout the Southeast. The transaction represents the first investment in the fund, Infinity RE Impact, newly formed by Infinity Capital Partners, an Atlanta based alternative investment management firm.
The portfolio comprises 741 units in total, all of which are subject to Land Use Restrictive Agreements (LURA), which require that 40 percent of the units be occupied by low income tenants who earn 60 percent or less of the Area Median Income (AMI). The properties are also supported by Housing Assistance Payment (HAP) Contracts that stipulate contractual rents are subsidized by the local housing authorities. Five of the properties are located in South Carolina, two are in North Carolina, and one is in Alabama.
Jeff Lawrence, Matt Baptiste, and Greg Krafcik led Walker & Dunlop in structuring the financing on behalf of Infinity Real Estate Advisors, and Infinity Capital Partners, whose principals are strong, repeat clients with extensive experience in developing and renovating affordable and Class C multifamily properties. The team worked alongside Geoff Smith and Kimberly Schmitz of Walker & Dunlop Commercial Property Funding, LLC, the company’s specialty high-yield first mortgage and mezzanine lending platform.
Deftly navigating the LURA and HAP considerations associated with the properties, Walker & Dunlop effectively structured financing at 90 percent loan to cost, thanks to the owner’s exceptional experience. In addition to covering the acquisition costs, loan proceeds will be used to complete $8,450,000 in renovations. The fund has engaged Atlanta Financial Group, led by Anthony Guarraci, to execute the portfolio rehabilitation, which will include interior unit restorations, common area upgrades, as well as building and site improvements.
“Our strategy is quite simple,” Greg Jones, Chief Investment Officer at IREA, stated. “There is not enough product to support the growing need for affordable housing. Should our economy weaken, this demand will only continue to grow.” Jones adds, “We see affordable multifamily as a unique investment product offering predictable returns in the event of an economic downturn.”
“It is more important than ever to ensure affordable housing remains an option for residents across the United States. The rehabilitation and preservation of the Ambling Portfolio will provide tenants with an updated place to call home,” commented Walker & Dunlop’s Baptiste. “We were honored to work with Infinity RE Impact, an experienced and respected affordable housing owner and operator, and to help maintain much-needed housing solutions in the Southeast.”
Walker & Dunlop is one of the largest multifamily lenders in the country and was ranked within the top five non-bank affordable lenders in the United States, according to the Mortgage Bankers Association’s 2018 Commercial/Multifamily Origination Rankings. In 2019 alone, Walker & Dunlop closed over $1.3 billion in transaction volume for affordable properties.
For more information about Walker & Dunlop’s view on the affordable housing space, read our latest Multifamily Outlook Report and the following press releases:
About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate finance companies in the United States. The company provides a comprehensive range of capital solutions for all commercial real estate asset classes, as well as investment sales brokerage services to owners of multifamily properties. Walker & Dunlop is included on the S&P SmallCap 600 Index and was ranked as one of FORTUNE Magazine’s Fastest Growing Companies in 2014, 2017, and 2018. Walker & Dunlop’s 800+ professionals in 40 offices across the nation have an unyielding commitment to client satisfaction.