Walker & Dunlop Secures $285M Refinancing for Two Class A Temple University Student Housing Properties

Rhea-AI Summary

Walker & Dunlop has successfully closed a $285,500,000 refinancing for two Class A student housing properties, Vantage and The View at Montgomery, located on Temple University's campus in Philadelphia. This represents one of the largest student housing financings in 2024 so far. The refinancing includes:

- $176 million for Vantage (368 units/984 beds)
- $109.5 million for The View at Montgomery (238 units/832 beds)

The deal involved Walker & Dunlop's Bethesda Multifamily Finance team and New York Capital Markets team, who secured seven-year fixed-rate loans through Freddie Mac. Walker & Dunlop Investment Partners (WDIP) also provided preferred equity investments for both properties.

Positive

• Secured $285.5 million refinancing for two prime student housing properties
• Demonstrates Walker & Dunlop's strong position in multifamily financing
• Showcases the company's ability to handle complex, large-scale transactions
• Highlights the resilience of the student housing sector despite macro headwinds

Negative

• None.

Financial Analyst

Walker & Dunlop's recent refinancing of $285.5 million for two Temple University student housing properties is a significant financial move, showcasing the company's expertise in securing high-value loans. This refinancing demonstrates the firm's capacity to manage large financial transactions and maintain strong relationships with major financial institutions like Freddie Mac. The seven-year fixed-rate loans indicate a stable and predictable financial environment for both the lender and the borrower, suggesting confidence in the long-term viability of the student housing market.

From an investor's perspective, this is an encouraging sign of Walker & Dunlop’s stability and strategic growth within a niche market. The involvement of Walker & Dunlop Investment Partners (WDIP) further strengthens this position by aligning equity investments with loan origination, which can potentially increase overall returns through both interest and equity appreciation. Given the macroeconomic challenges mentioned, this move also highlights the resilience and demand in the student housing sector, which could attract further investment into this asset class.

Short-term impact: Likely positive, as it demonstrates financial health and operational capability. Long-term impact: Potential for stable returns and growth in market share within the student housing sector.

Market Research Analyst

This refinancing deal underscores a solid demand for student housing at Temple University, despite broader economic pressures. The properties, Vantage and The View at Montgomery, are strategically located and offer premium amenities, which are important factors driving their attractiveness and occupancy rates. The consistent pre-leasing and rent growth reported by The Goldenberg Group also indicate a robust and resilient submarket for student housing.

For retail investors, the deal showcases Walker & Dunlop's ability to identify and capitalize on profitable opportunities in specialized markets. The emphasis on quality and location, coupled with the university's large student population, mitigates some of the risks associated with real estate investments. Additionally, the partnership with Freddie Mac and WDIP highlights the importance of leveraging multiple financing sources to optimize investment outcomes.

Short-term impact: Enhanced investor confidence due to proven demand and strategic asset management. Long-term impact: Stable and potentially increasing returns as student housing remains a vital and growing segment.

Real Estate Expert

The refinancing of these student housing properties at Temple University by Walker & Dunlop represents a significant achievement in the real estate sector. These properties are high-quality assets, featuring modern design and amenities that set a high standard in the student housing market. The ability to secure $285.5 million in refinancing through Freddie Mac and WDIP reflects the high valuation and strong performance of these assets.

For investors, this deal illustrates Walker & Dunlop's adeptness in managing and refinancing valuable real estate, which is essential for maintaining and enhancing asset value. The properties' prime locations and comprehensive amenities make them highly competitive within the student housing market, ensuring sustained demand and occupancy. Furthermore, the partnership with well-known financing entities suggests a lower risk profile, which is advantageous for investors seeking stable, long-term returns.

Short-term impact: Positive due to reaffirmed asset value and successful refinancing. Long-term impact: Sustained profitability and potential appreciation in asset value due to high demand and strategic management.

BETHESDA, Md.--(BUSINESS WIRE)-- Walker & Dunlop, Inc. announced today the closure of a $285,500,000 refinancing for Vantage and The View at Montgomery in Philadelphia, Pennsylvania. The two student housing properties are located on Temple University's campus and represent one of the largest student housing financings closed thus far in 2024.

Vantage Apartments (Photo: Business Wire)

Walker & Dunlop’s Bethesda Multifamily Finance team and New York Capital Markets team were retained as exclusive advisors to the clients, The Goldenberg Group, originating the seven-year fixed rate loans through Freddie Mac. The teams also engaged Walker & Dunlop Investment Partners (WDIP) to provide a preferred equity investment as part of the refinancings.

“WDIP’s deep expertise in the student housing space enabled us to step in and provide preferred equity for these prime properties, leveraging the strong collaboration within our Walker & Dunlop platform,” said Brian Cornell, managing director and head of WDIP Equity at Walker & Dunlop Investment Partners. “We are pleased to have contributed to such a highly impactful project.”

Vantage was completed in 2019 and its 19 stories houses 368-units / 984-beds, boasting modern design, over 30,000 sq ft. of amenity space, best-in-class retail offerings and a diverse unit mix spanning studios to four-bedrooms, totaling nearly 323,000 rentable square feet. Walker & Dunlop originated the seven-year fixed-rate loan from Freddie Mac and WDIP provided a coterminous preferred equity investment, with combined proceeds totaling $176.0 million.

The View at Montgomery has 238-units / 832-beds and is located in the center of Temple University's main campus. The 14-story tower opened in 2014, featuring a variety of units, spanning studios to four-bedrooms across 235,513 rentable square feet. Walker & Dunlop originated the seven-year fixed-rate loan from Freddie Mac and WDIP provided a coterminous preferred equity investment, with combined proceeds totaling $109.5 million.

The Walker & Dunlop Bethesda Multifamily Finance team was led by Connor Locke, Colin Coleman, Brendan Coleman, Chris Forte, Adam Johnston, and Skye Stansbury. The Walker & Dunlop New York Capital Markets team was led by Adam Schwartz, Sean Reimer, Aaron Appel, Jonathan Schwartz, Keith Kurland, Michael Ianno, and William Herring. The Walker & Dunlop Investment Partners team was led by Brian Cornell, Marcus Duley, Duncan McHale, and Brent George.

"In the face of macro headwinds stemming from the financial crisis, the covid pandemic and nationwide enrollment pressure, the student housing sector has proven its resiliency time and time again. The Goldenberg Group’s impeccable attention to detail has created an unmatched experience for the Temple students and in turn driven rent growth in excess of conventional multifamily assets while at the same time fundamentally expediting pre-leasing every year," explained Connor Locke, managing director of Multifamily Finance at Walker & Dunlop. "This evolution has created additional opportunities for financing, and we are pleased to have worked alongside Freddie Mac and WDIP to secure a comprehensive refinancing solution for The Goldenberg Group.”

The Goldenberg Group acquired the site for Vantage and The View at Montgomery in 2008 as part of a planned multi-phase student housing development project that would bring much needed rental product to Temple University. Both feature top retailers, an unparalleled amenity program and superior access in the center of Temple University's campus.

"Our commitment is to be a source of positive transformation in the neighborhood and deliver exceptional student housing experiences in vibrant university communities," said Mark Caltabiano, executive vice president of Asset Management at The Goldenberg Group. "We are thrilled with the successful refinancing by Walker & Dunlop, Freddie Mac, and WDIP. This origination truly demonstrated the power of the Walker & Dunlop platform to pull together a complex transaction.”

Walker & Dunlop is one of the top providers of capital to the U.S. multifamily market; in 2023, the firm originated over $24 billion in debt financing volume, including lending over $20 billion for multifamily properties. Also in 2023, Walker & Dunlop's Capital Markets group sourced capital for transactions totaling nearly $12 billion from non-Agency capital providers. This vast experience has made both teams top advisors on all asset classes for many of the industry's top developers, owners, and operators. To learn more about Walker & Dunlop's broad financing options, visit our website.

About Walker & Dunlop Investment Partners

Walker & Dunlop Investment Partners (“WDIP”) is an alternative investment manager that provides capital solutions to middle-market commercial real estate sponsors. Investing on behalf of insurance companies, public pension funds, endowments, foundations, family offices, and high-net worth individuals, WDIP partners with sponsors whose transactions are in need of financing but are under-served by institutional capital. The Denver, Colorado-based firm's investment vehicles focus on opportunistic, value-add, and income-oriented commercial real estate strategies. As a wholly owned subsidiary of Walker & Dunlop, one of the largest commercial real estate finance companies in the United States, WDIP has unmatched access to proprietary resources and market intelligence. This partnership offers clients unique, real-time insights into market movements, valuation, pricing, and underwriting. For more information, visit www.wdinvestmentpartners.com.

All investments have risk of loss and WDIP cannot guarantee any investment strategy will achieve its goals and objectives. Nothing herein is an offer to sell any security, including an interest in any private fund.

About Walker & Dunlop

Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States. Our ideas and capital create communities where people live, work, shop, and play. The diversity of our people, breadth of our brand and technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240722910532/en/

Investors:

Kelsey Duffey

Investor Relations

Phone 301.202.3207

investorrelations@walkeranddunlop.com

Media:

Nina H. von Waldegg

VP, Public Relations

Phone 301.564.3291

info@walkeranddunlop.com

Phone 301.215.5500

7272 Wisconsin Avenue, Suite 1300

Bethesda, Maryland 20814

Source: Walker & Dunlop, Inc.

FAQ

What was the total refinancing amount secured by Walker & Dunlop (WD) for the Temple University student housing properties?

Walker & Dunlop secured a total refinancing amount of $285,500,000 for two Class A student housing properties, Vantage and The View at Montgomery, located on Temple University's campus in Philadelphia.

How much financing did Walker & Dunlop (WD) secure for the Vantage property at Temple University?

Walker & Dunlop secured $176 million in combined proceeds for the Vantage property, which includes a seven-year fixed-rate loan from Freddie Mac and a coterminous preferred equity investment from Walker & Dunlop Investment Partners (WDIP).

What was the refinancing amount for The View at Montgomery secured by Walker & Dunlop (WD)?

Walker & Dunlop secured $109.5 million in combined proceeds for The View at Montgomery, consisting of a seven-year fixed-rate loan from Freddie Mac and a coterminous preferred equity investment from Walker & Dunlop Investment Partners (WDIP).

How much debt financing volume did Walker & Dunlop (WD) originate for multifamily properties in 2023?

In 2023, Walker & Dunlop originated over $20 billion in debt financing volume for multifamily properties, out of a total of over $24 billion in debt financing volume across all asset classes.