Walker & Dunlop Targets Bank Borrowers With New Floating Rate Product
Bethesda, Maryland |
Sept. 19, 2022
Walker & Dunlop, Inc. announced today a new partnership with Kayne Anderson Real Estate to create Walker Private Lending, a much-needed product for investors that broadens the company's lending capabilities in the small balance multifamily market. Walker Private Lending will target commercial bank borrowers who own multifamily properties with five to 99 apartment units. The new product offers clients competitive loan terms and flexibility including floating rate loans, full-term and partial-term interest-only, and fixed rate loans with flexible pre-payment options.
"Walker & Dunlop entered the small balance lending (SBL) market several years ago and has predominantly originated and sold SBL loans through Fannie Mae and Freddie Mac," stated Willy Walker, Walker & Dunlop's Chairman and Chief Executive Officer. "This new partnership with Kayne Anderson expands our capabilities with an extremely savvy and sophisticated capital partner to meet our clients' needs and further accelerate their growth."
Roughly 85% of the apartment inventory in the United States is comprised of properties within SBL parameters and lending to this segment is dominated by the large, money-center banks. The SBL market is experiencing dramatic growth and Walker & Dunlop's brand, people, and technology are well equipped to meet the needs of these investors.
"Our partnership with Kayne Anderson allows us to provide less of a 'one-size-fits-all' credit approach that is common with competing capital sources," commented Alison Williams, Senior Vice President and Chief Production Officer at Walker & Dunlop. "Walker Private Lending will deliver innovative loan terms as well as certainty of execution, which is vital to our targeted investors in today's unpredictable markets."
Walker Private Lending will originate 3 to 10-year loans on stabilized, cash-flowing assets such as conventional multifamily, manufactured housing, student housing, scattered sites, and mixed-use assets with a primary multifamily component.
"The SBL borrowers are massively underserved without tailored financing options that enable their emerging real estate businesses to grow," commented David Selznick, Chief Investment Officer at Kayne Anderson Real Estate. "Our real estate debt platform is designed for these specialized and highly fragmented lending businesses. We couldn't be more thrilled to partner with Walker & Dunlop – an industry leader with a very thoughtful and innovative team."
Walker & Dunlop is one of the largest multifamily providers in the United States, having deployed $42 billion of capital in 2021. The Company is also one of the largest multifamily property sales brokers, having completed $19.3 billion in property sales in 2021, up 214% from 2020.
Kayne Anderson Real Estate ("KA Real Estate") is a leading real estate private equity investor in medical office, seniors housing, off-campus student housing, multifamily housing and self-storage. KA Real Estate manages $14 billion of real estate AUM across opportunistic equity, core equity and real estate debt. KA Real Estate is part of Kayne Anderson Capital Advisors, L.P., a $35 billion alternative investment management firm with more than 37 years of successful experience in the real estate, infrastructure, credit, and growth capital sectors (as of 8/18/2022).
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