Walker & Dunlop Structures $26 Million Construction Loan for Luxury Build-for-Rent Homes in Las Vegas

Rhea-AI Summary

Walker & Dunlop announced a $26,298,388 financing arrangement for Seneca at Southern Highlands, a 50-unit luxury build-for-rent community in Las Vegas, Nevada. The development will begin delivering homes in September 2022 and is set for completion by May 2023. The financing features a three-year term with interest-only payments at competitive rates, supporting the production of upscale townhome-style units designed for families and older renters. Walker & Dunlop is actively engaged in financing BFR assets across various municipalities, reflecting their expertise in this growing sector.

Positive

• Secured $26.3 million in financing for a luxury build-for-rent project, indicating strong capital access.
• Development will cater to young families and older renters, potentially broadening the customer base.
• Walker & Dunlop's expertise in the BFR sector enhances credibility and future project viability.

Negative

• None.

BETHESDA, Md., Dec. 22, 2021 /PRNewswire/ -- Walker & Dunlop, Inc. announced today that it arranged $26,298,388 in financing for Seneca at Southern Highlands, a 50-unit, luxury build-for-rent (BFR) community to be constructed in Las Vegas, Nevada. The first home will be delivered in September 2022, and the fully completed development will be finalized in May 2023.

Keaton Merrell, Jim Pierson, and Shannon Hersker, of Walker & Dunlop's Phoenix-based capital markets team, arranged the non-recourse construction financing on behalf of their client, Seneca. The team collaborated across the Walker & Dunlop platform, partnering with Heather McClure, of the firm's Dallas-based structured finance group to identify the ideal lender. The final terms of the loan included a three-year term with interest-only payments at a very competitive rate.

"Working with Keaton and the Walker & Dunlop team has been a great experience and we were presented with multiple competitive financing options. We look forward to working together again soon and we're thrilled to move forward with the construction of our latest Seneca neighborhood," noted Michael Stuhmer, Principal at Seneca. "We are hyper focused on developing homes and communities that serve the resident by merging maintenance-free solutions, tech-enabled functionality, and personalized design within a rented-home experience."

Ms. Hersker commented, "Our team has been tracking the growth of the BFR sector and financing deals across the U.S. for several years now. We are currently working on financing BFR assets in over a dozen municipalities nationally. Like all of these places, the Las Vegas MSA is a natural fit for this asset class, and we were pleased to put our knowledge and experience to work for our client."

Stretching across 10 acres and 119,500 rentable square feet, Seneca at Southern Highlands is an upscale townhome-style community that caters to young families and older renters alike. Positioned on a hillside with views of the Las Vegas Strip, the neighborhood will include 25 three-bedroom, two-bathroom units and 25 four-bedroom, three-bathroom units. Each home will feature a two-car garage and a private backyard. Property amenities feature a private gated entry, walking trails, an elevated common area with a community garden, and a private dog park  

Walker & Dunlop's BFR & SFR Practice Group is comprised of 12 experts strategically positioned across the business to finance and sell these specialty communities. Our national team provides expert guidance on property sales, debt origination, and the structuring of equity to generate optimal returns and strategic relationships for our clients. The team is active with over fifty groups in the space, which range from institutional clients, homebuilders, multifamily developers, and individual investors. With an active pipeline of over $1.9 billion of transaction volume, the team has extensive experience executing on lending, capital brokerage, or investment sales opportunities. For more information on our Build-for-Rent practice group or to connect with an advisor, visit our website.

About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is the largest provider of capital to the multifamily industry in the United States and the fourth largest lender on all commercial real estate including industrial, office, retail, and hospitality. Walker & Dunlop enables real estate owners and operators to bring their visions of communities — where Americans live, work, shop and play — to life. The power of our people, premier brand, and industry-leading technology make us more insightful and valuable to our clients, providing an unmatched experience every step of the way. With over 1,000 employees across every major U.S. market, Walker & Dunlop has consistently been named one of Fortune's Great Places to Work^® and is committed to making the commercial real estate industry more inclusive and diverse while creating meaningful social, environmental, and economic change in our communities.      

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SOURCE Walker & Dunlop, Inc.

FAQ

What is the financing amount arranged by Walker & Dunlop for Seneca at Southern Highlands?

Walker & Dunlop arranged a financing amount of $26,298,388.

When will the first homes at Seneca at Southern Highlands be delivered?

The first homes are scheduled for delivery in September 2022.

When is the completion date for the Seneca at Southern Highlands project?

The fully completed development is expected to be finalized by May 2023.

What type of community is Seneca at Southern Highlands?

Seneca at Southern Highlands is a 50-unit luxury build-for-rent community in Las Vegas.

What units will the Seneca at Southern Highlands community offer?

The community will include 25 three-bedroom and 25 four-bedroom units.

What features does the Seneca at Southern Highlands project provide?

Each unit features a two-car garage and a private backyard, along with community amenities.

What is Walker & Dunlop's role in the financing of this project?

Walker & Dunlop arranged the non-recourse construction financing on behalf of Seneca.