BETHESDA, Md- Walker & Dunlop, Inc. announced today that it provided short-term bridge financing for the acquisition of Castile Apartments, and then later converted the financing to a $56,500,000 permanent Freddie Mac loan.
Led by Managing Director Trevor Fase, the team successfully closed both complex transactions on a compressed timeline for the borrower, Thompson Michie Equities (TME). The property is a Class A+, lakeside garden-style apartment community located just outside of Las Vegas, in Henderson, Nevada.
Said Mr. Fase, “This transaction is a prime example of how Walker & Dunlop’s breadth of offerings benefits our clients.” He added, “Our proprietary bridge lending program is unique in that it allows us to provide the right solution at the right time. In the case of Castile Apartments, this meant closing the acquisition with short-term financing to enable the borrower to execute their business plan while managing to very tight timeframes.”
Within a month of the initial bridge financing, Walker & Dunlop’s team leveraged its deep understanding of Freddie Mac’s programs to close a Lease-Up loan for the borrower. Completed in early 2018, the property is nearing full occupancy; the Lease-Up program allows borrowers to lock and close prior to stabilization. The financing was structured as an 11-year fixed rate loan, with full-term interest-only. The team ensured an excellent rate for the borrower by taking advantage of Freddie Mac’s Index Lock program, capitalizing on low Treasury rates early in the due diligence process.
“Without Walker & Dunlop, this transaction couldn’t have happened,” commented TME’s Principals, James Michie and Roger Thompson. “The structure was difficult, but the innovative combination of the interim and permanent loans made it work smoothly. We couldn’t be happier with the high level of expertise of our friends at Walker & Dunlop and we look forward to having yet another terrific asset in the dynamic Henderson market.”
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Completed in 2018, Castile Apartments consists of 28 buildings and 498 units. The property’s unit mix comprises studios, one-, two-, and three-bedrooms, as well as carriage-houses. With optional balconies, all-new interiors, appliances, and finishes, Castile Apartments is the latest delivery in the immediate area. The community also features a premium amenities package including a gated entrance, pool, spa, clubhouse, yoga and spinning studios, fitness center, business center, media lounge with TV, barbecue and picnic areas, and a dog park.
Walker & Dunlop is a leader in the multifamily lending space, ranking as the #3 Freddie Mac Multifamily Approved Seller/Servicer and the #2 multifamily GSE lender in the United States in 2017. To complement our strong presence in the multifamily lending space, Walker & Dunlop’s bridge lending program offers short-term, non-recourse loans to clients who are in the process of repositioning a property or executing a new business plan. For more information about our bridge lending program, visit our website and read the following press release:
• Walker & Dunlop Provides Two Bridge Loans Totaling $75 Million for Large Multifamily Repositioning Projects