Walker & Dunlop Targets Bank Borrowers With New Floating Rate Product

Rhea-AI Summary

Walker & Dunlop has announced a partnership with Kayne Anderson Real Estate to launch Walker Private Lending, targeting small balance multifamily properties with 5 to 99 apartment units. This initiative aims to offer flexible loan terms including floating rates and pre-payment options, catering to a growing segment that is currently underserved. With approximately $42 billion deployed in capital and $19.3 billion in property sales in 2021, Walker & Dunlop leverages its brand, technology, and client focus to meet the evolving needs of investors in an unpredictable market.

Positive

• Launch of Walker Private Lending expands lending capabilities in the small balance multifamily market.
• Partnership with Kayne Anderson provides enhanced flexibility and competitiveness in loan offerings.
• Walker & Dunlop holds a strong market position, having deployed $42 billion in capital and completed $19.3 billion in property sales in 2021.

Negative

• None.

BETHESDA, Md., Sept. 19, 2022 /PRNewswire/ -- Walker & Dunlop 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. 

About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is one of the largest providers of capital to the commercial real estate industry in the United States, enabling real estate owners and operators to bring their visions of communities — where Americans live, work, shop and play — to life. Our people, brand and technology make W&D one of the most insightful and customer-focused firms in our industry. With more than 1,400 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.

About Kayne Anderson Real Estate
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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SOURCE Walker & Dunlop, Inc.

FAQ

What is Walker Private Lending launched by WD?

Walker Private Lending is a new product designed to provide tailored financing options for small balance multifamily properties, specifically targeting commercial bank borrowers with 5 to 99 apartment units.

How does the partnership with Kayne Anderson Real Estate benefit WD?

The partnership enhances Walker & Dunlop's lending capabilities by offering innovative and flexible loan terms that are tailored to meet the needs of underserved borrowers in the small balance multifamily market.

What financial metrics did Walker & Dunlop achieve in 2021?

In 2021, Walker & Dunlop deployed $42 billion in capital and completed $19.3 billion in property sales, reflecting a 214% increase from 2020.

What types of loans will Walker Private Lending offer?

Walker Private Lending will offer 3 to 10-year loans on stabilized, cash-flowing assets such as conventional multifamily, manufactured housing, and mixed-use assets.

What market does Walker & Dunlop primarily serve?

Walker & Dunlop primarily focuses on the small balance multifamily market, which represents roughly 85% of the apartment inventory in the United States.