Dealmaker: Walker & Dunlop Arranges $500M for Multifamily, Health Care
MBA NewsLink Staff
Walker & Dunlop, Bethesda, Md., arranged nearly $500 million for multifamily projects in California and Nevada and a healthcare portfolio across three states.
Walker & Dunlop structured $392.4 million in green financing for three multifamily properties in southern California. The Medici and The Orsini I, two Class A multifamily communities in downtown Los Angeles, were financed through $233.6 million in Freddie Mac Green Up loans. The third transaction, The Colony Townhomes, was completed on a compressed timeline through Fannie Mae's Green Rewards program, rate locking in 14 days and closing in 32 days. The 752-unit garden-style community located in Santa Clarita, Calif., received $158.8 million in financing.
Led by Trevor Fase, Walker & Dunlop's team worked to refinance the existing loans on the properties, all of which are owned and were originally developed by the borrower, G.H. Palmer Associates. Each transaction provided cash out to the borrower and was structured as a 10-year, non-recourse loan with interest-only for the entire term.
The Medici is a mid-rise, 632-unit multifamily property consisting of two buildings connected by a sky bridge. The community offers studios and one-, two- and three-bedroom units with nine-foot ceilings and balconies or patios.
The Orsini I is one part of a three-phase development on Sunset Boulevard. Unit offerings include studios and one- and two-bedroom apartments with individual balconies or patios, solid oak doors, premium appliances and granite countertops. Both properties include outdoor swimming pools, spas with saunas and steam rooms, fitness centers, tennis courts, a jogging track, golf facilities including a putting green and golf driving cages, a regulation-size indoor basketball court, clubhouses, a sand volleyball court and picnic areas with barbeque grills and a playground.
The Colony Townhomes is located just off of the Antelope Valley Freeway in Santa Clarita. It consists of 94 buildings on a 40-acre site and features five swimming pools, a fitness center, spa, dog park, playgrounds and picnic areas. Residents have the option of two-car direct access garages, balconies and patios, gas fireplaces, as well as scenic views of the surrounding canyons.
In Nevada, Walker & Dunlop provided short-term bridge financing for acquisition of Castile Apartments, converting financing to a $56.5 million permanent Freddie Mac loan.
Led by Fase, the team closed both complex transactions on a compressed timeline for the borrower, Thompson Michie Equities. The property is a Class A+, lakeside garden-style apartment community located just outside of Las Vegas, in Henderson, Nev.
Within a month of the initial bridge financing, Walker & closed a Freddie Mac Lease-Up loan for the borrower. The Lease-Up program allows borrowers to lock and close prior to stabilization. The financing was structured as an 11-year fixed rate loan, with full-term interest-only.
Completed in 2018, Castile Apartments consists of 28 buildings and 498 units. The property's unit mix comprises studios, one-, two- and three-bedrooms, as well as carriage-houses. With optional balconies, all-new interiors, appliances and finishes, Castile Apartments is the latest delivery in the immediate area. It also features a gated entrance, pool, spa, clubhouse, yoga and spinning studios, fitness center, business center, media lounge with TV, barbecue and picnic areas and a dog park.
Walker & Dunlop Inc. also provided five loans totaling $40.1 million for several specialized healthcare properties located in Georgia, Ohio and Tennessee. Comprising 513 beds, the properties include skilled nursing, assisted living and memory care facilities; each loan was structured through programs provided by HUD.
Walker & Dunlop Senior Vice President Kevin Giusti led the origination team.
One of the five transactions included a unique challenge: in addition to refinancing the property, the developer's business plan included construction of 16 additional units to maximize the property's future cash flow and add value to the community. Walker & Dunlop streamlined the existing intricate loan structure, which included both short-term bank and Agency debt, into a single refinance and construction loan.