By Anca Gagiuc, Associate Editor
Austin, Texas—Walker & Dunlop Inc. announced it structured an $8 million loan for Santa Barbara-based M3 Multifamily with CUNA Mutual Group. The funds were used to refinance the garden-style apartment community Links at Forest Creek located in Round Rock, Texas.
The refinancing was structured as a 15-year assumable loan placed with a Wisconsin-based life insurance company at a fixed rate of 4.18 percent. Senior vice president Tom Toland, together with Vice President Brandon Strong and Assistant Vice President Jeff Schmidt led the Walker & Dunlop team. At the time of closing, the community was 98 percent occupied.
“M3 has been a great Freddie/Fannie client over the years, but this deal was a challenging fit for the GSEs and most lenders because of the fractional ownership structure at the property. Fortunately, Walker & Dunlop has an extensive network of life insurance company relationships and we were able to quickly identify CUNA as a great fit for the debt on this deal,” said Toland in a statement.
The Links at Forest Creek is situated 22 miles northeast of Austin. Originally, the community was developed as an investor-owned planned rental community with 55 fourplex buildings totaling 22o units. Post development, the original developer sold 15 of the buildings to 15 separate investors, thus M3 acquired the remaining 40 buildings (160 units) in 2012. The fractional ownership nature of Links at Forest Creek was challenging for most traditional lending programs, even though M3 controlled the homeowners association and managed the property.
“This was a tough deal, but Tom, Brandon, and the Walker & Dunlop team did a great job and it was a surprisingly clean process. It was also a pleasure dealing with the CUNA folks and we look forward to working with both Walker & Dunlop and CUNA in the future,” said Jon Martin, managing partner & vice president/CFO of M3.
Residents at the garden-style community can choose from two two-bedroom floor plans of 868 and 958 square feet. Community amenities include clubhouse, resort-style pool, fitness center, perimeter fencing with remote access entry, and on-site management and maintenance. Unit amenities feature patios or balconies, attached private covered parking, and nine-foot and vaulted ceilings.
Images courtesy of M3 Commercial