Walker & Dunlop, Inc. announced today that it structured $14,120,000 in Fannie Mae financing for the acquisition of Blackbob Court Townhomes. Located in Olathe, Kansas, within the Kansas City Metropolitan Area, the affordable multifamily community consists of 41 townhome-style buildings comprised of 161 apartment units.
Led by Dustin Swartz, Managing Director, and Karl Rincavage, Senior Analyst, Walker & Dunlop arranged the loan on behalf of the borrower, Vazza Real Estate Group. The loan was processed using Fannie Mae’s Green Rewards Program, which provides lower pricing and additional loan proceeds to support financing green property improvements.
“This property is a fantastic addition to our multifamily portfolio,” said Stephen F. Vazza, President of Vazza Real Estate Group. “We really like the Kansas City market and are actively looking for more multifamily opportunities in the area.” Vazza Real Estate Group is a Boston-based real estate firm with a portfolio that is primarily focused on major secondary markets with strong economic drivers. “We are seeing better cap rates and overall returns in these markets,” Vazza went on to say. “With interest rates at a historic low, we have been able to acquire over 1,200 apartments this year in excellent markets including Kansas, Kentucky, and Alabama.”
Mr. Swartz added, “This deal demonstrates Fannie Mae’s ability to provide very attractive financing terms for affordable housing properties, which support Fannie Mae’s mission-driven housing goals. Working with Fannie Mae, we provided an excellent debt execution for the borrower to fund 80 percent of their purchase price on a 12-year fixed rate loan with a four-year interest-only period. This is Walker & Dunlop’s first transaction with Vazza Real Estate Group, and we look forward to working with them on many future debt opportunities.”
The property was built in three phases between 1994 and 1998 with Low Income Housing Tax Credit (LIHTC) equity. A Land Use Restrictive Agreement (LURA) is tied to each phase of the property, with 130 apartments, representing 81 percent of the total units, restricted to households earning 60 percent or less of area median income.
Walker & Dunlop is one of the largest multifamily lenders and ranks within the top five affordable lenders in the United States. For more information about Walker & Dunlop's commitment to corporate responsibility, including our Diversity & Inclusion, affordable housing, and Green Financing initiatives, download our 2020 ESG summary.
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 900+ professionals in 40 offices across the nation have an unyielding commitment to client satisfaction.