Walker & Dunlop, Inc. announced today that it structured $37,268,000 in permanent financing for San Fernando Apartments. Located in Mesa, Arizona, the 264-unit affordable housing community is supported by an allocation of four percent Low Income Housing Tax Credits (LIHTC)
Tom Sigrist and Drew Hefner of Walker & Dunlop's FHA Finance team led the transaction on behalf of their client, ReNUE Properties. The team has over 30 years of cumulative experience in financing multifamily, seniors housing, and healthcare facilities across the country. Drawing on their in-depth knowledge of the U.S. Department of Housing and Urban Development (HUD), the Walker & Dunlop team utilized the Agency's 223(f) acquisition and refinance program, which provides long-term and low-rate financing for conventional and affordable multifamily properties.
The permanent financing for San Fernando Apartments will replace the existing debt previously provided by Walker & Dunlop's bridge lending program, which utilizes the company's own balance sheet to offer short-term, nonrecourse loans for properties that are being acquired or repositioned as part of a new business strategy. The original bridge financing provided by Walker & Dunlop in December 2019 supplied the proceeds the client needed to acquire the property within a limited timeframe that was specified in the purchase and sale agreement.
"This transaction is a perfect example of the company's unique suite of offerings, which provide tailored solutions – such as a short-term bridge loan – at the right time," said Mr. Sigrist. "This transaction helps preserve much-needed rental options for lower income residents in Arizona, where this type of housing is in consistent high demand."
San Fernando Apartments has operated as an affordable housing community since it was originally constructed in 2006, with 90 percent of the units reserved for residents earning 50 and 60 percent of area median income (AMI). Offering one-, two-, and three-bedroom units, the garden-style apartment complex features individual patios and balconies, in-unit washers and dryers, as well as central heating and air. Community amenities include a pool, playground, state-of-the-art fitness center, clubhouse, basketball court, and covered parking.
Walker & Dunlop is the largest provider of capital to the multifamily industry in the United States based on the 2020 Mortgage Bankers Association loan origination rankings. The firm has consistently been ranked one of the top non-bank affordable housing lenders in the country and is committed to providing safe and affordable housing to America's communities by financing affordable, workforce housing, and healthcare communities, which serve the country's most vulnerable populations. 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), headquartered in Bethesda, Maryland, is one of the largest commercial real estate finance companies in the United States. The company provides a comprehensive range of capital solutions for all commercial real estate asset classes, as well as investment sales brokerage services to owners of multifamily properties. Walker & Dunlop is included on the S&P SmallCap 600 Index and was ranked as one of FORTUNE Magazine's Fastest Growing Companies in 2014, 2017, and 2018. Walker & Dunlop's 1,000+ professionals in 38 offices across the nation have an unyielding commitment to client satisfaction.