Walker & Dunlop Structures $52 Million in Bridge Financing and Subsequent HUD Loans for North Carolina Multifamily Communities

Rhea-AI Summary

Walker & Dunlop has successfully arranged $52,606,500 in financing for Stone Gate Apartments and Village on the Lake Apartments, located in Spring Lake, North Carolina. The financing includes a nine-month bridge loan and permanent HUD loans via the agency's 223(f) refinance program. This financing strategy allowed the borrower, Van Metre Companies, to secure historically low interest rates and capitalize on the properties' high ENERGY STAR ratings. Walker & Dunlop is the largest capital provider to the multifamily sector in the U.S. and ranks as the fifth-largest HUD lender.

Positive

• Secured $52,606,500 in financing for two multifamily properties.
• Utilized HUD's 223(f) refinance program to enable competitive interest rates.
• Achieved financing through a nine-month bridge loan before permanent loans.
• Properties feature high ENERGY STAR scores, allowing access to lower MIP rates.
• Strong partnership with Van Metre Companies, a repeat HUD borrower.

Negative

• None.

BETHESDA, Md., Jan. 10, 2022 /PRNewswire/ -- Walker & Dunlop, Inc. announced today that it structured $52,606,500 in financing for Stone Gate Apartments and Village on the Lake Apartments, two multifamily properties located in Spring Lake, North Carolina.

Walker & Dunlop's Jeremy Nussbaum and Ryan Moore arranged the nine-month bridge financing on the company's own balance sheet before structuring separate U.S. Department of Housing and Urban Development (HUD) debt for each property. The team utilized the agency's 223(f) refinance program to arrange the permanent financing on behalf of their client, Van Metre Companies. Both communities received a high ENERGY STAR score, enabling Walker & Dunlop to secure a competitive interest rate for the borrower by leveraging HUD's green mortgage insurance premium (MIP) reduction program.

"As a repeat HUD borrower and first-time client of Walker & Dunlop, we found Jeremy and Ryan's quick problem-solving capabilities and broad agency experience to be a huge advantage which added significant value when closing these transactions," commented Phillip Spalding, Vice President of Financing of Van Metre Companies. "Van Metre holds investments for the future, and the HUD loans for each property allowed us to lock in historically low rates for the long HUD term and amortization, fixing debt service costs and increasing long term cash flows.  The properties also realized the low "Green" MIP rate for qualifying under HUD's energy efficiency requirements."

Mr. Nussbaum added, "Our team was selected by Van Metre Companies because of our ability to complete bridge-to-permanent financing under one roof and offer a seamless borrower experience, and we look forward to working with them again on future transactions."

Located about two miles apart from each other, Stone Gate Apartments and Village on the Lake Apartments are both gated communities positioned near the Fort Bragg U.S. Army base and within the Spring Lake submarket of Fayetteville, North Carolina. Built in 2012, Stone Gate Apartments is a 264-unit, garden-style community comprised of 12 apartment buildings.  Stone Gate offers open concept floor plans including 9-foot ceilings, granite countertops, ample walk-in closets, and relaxing garden tubs with separate showers. Community amenities include a fitness center featuring a rock-climbing wall, swimming pool, tanning room, and storage units available for lease by residents. Village on the Lake Apartments was built in two phases, the first in 2005 and second in 2010, and contains 13 apartment buildings. The 300-unit, garden-style community by the lake offers 12 floor plans, stunning lake views and unparalleled features including a car wash center, volleyball court, swimming pool, picnic area, and other amenities.

Walker & Dunlop is the largest provider of capital to the multifamily industry and is ranked the 5th largest HUD lender in the United States based on the 2020 Mortgage Bankers Association loan origination rankings. For more information about Walker & Dunlop's commitment to corporate responsibility, including our Diversity & Inclusion, affordable housing, and Green Financing initiatives, download our ESG Summary.

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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/walker--dunlop-structures-52-million-in-bridge-financing-and-subsequent-hud-loans-for-north-carolina-multifamily-communities-301457625.html

SOURCE Walker & Dunlop, Inc.

FAQ

What financing did Walker & Dunlop arrange for Stone Gate Apartments and Village on the Lake Apartments?

Walker & Dunlop structured $52,606,500 in financing for both properties.

When was the financing for the North Carolina multifamily properties announced?

The financing was announced on January 10, 2022.

What benefits did Van Metre Companies gain from the HUD loans arranged by Walker & Dunlop?

Van Metre Companies secured historically low rates and fixed debt service costs, increasing long-term cash flows.

Why did Walker & Dunlop utilize HUD's green mortgage insurance premium reduction program?

The program was leveraged due to the properties' high ENERGY STAR scores, securing competitive interest rates.

What is the significance of the financing arrangement for Walker & Dunlop?

This arrangement reinforces Walker & Dunlop's position as a leading capital provider in the multifamily sector.