Walker & Dunlop Structures $145M Mortgage for Honolulu Asset

Walker & Dunlop arranges a large Fannie Mae mortgage; TGM Associates completes a Connecticut sale; and Capital One Multifamily provides a $30.25 million bridge loan for Golden Horizon Realty.

Honolulu—Walker & Dunlop Inc. has financed Moanalua Hillside Apartments in Honolulu with a $145 million first trust mortgage. Allan Edelson, managing director, led the Walker & Dunlop team that structured the financing using a Fannie Mae adjustable rate mortgage. After repaying the existing first mortgage, the borrower will use net proceeds of approximately $30 million for interior renovations and the construction of 496 additional apartments.

“The borrower was interested in favorable prepayment options and with our team’s expertise in multifamily financing, we were able to offer a unique prepayment feature of a one-year lock-out period, followed by 1 percent for 12 months, 0.5 percent for the following six months, then open at Par,” Edelson said.

Originally built in 1968 and renovated in 2004, Moanalua Hillside Apartments is a 700-unit, garden-style apartment community, featuring one- and two-bedroom apartments. With a regulatory agreement in place from the original issuance of the bonds in October 2000, the property offers affordable housing options (20 percent to low income residents and 30 percent to moderate income residents). Moanalua Hillside Apartments consists of 25 buildings spread throughout a 27.7 acre site with amenities including gated access, kitchens with breakfast bars, sundecks, ocean views, two swimming pools, volleyball courts and a brand new fitness center.

TGM Associates completes Connecticut apartment disposition

TGM Associates Willow Grove PropertyDanbury, Conn.—Just days after announcing an Connecticut acquisition from AvalonBay, TGM Associates has disclosed that it sold a 135-unit asset in Danbury, Conn. The property, Willow Grove, had been in TGM’s portfolio since 2010. The buyer was New York-based Beachwood Residential. IPA’s Steve Witten and Victor Nolletti brokered the sale.

TGM currently has a portfolio of properties expanding 12 states. Since its inception in 1991, the first has investment approximately $2.1 billion in 123 multifamily communities throughout 28 states.

Capital One Multifamily provides $30.25M bridge loan for Golden Horizon Realty

Jasmine PlaceBethesda, Md.—Capital One Multifamily Finance announced that it has provided a $30.25 million floating-rate bridge loan for Jasmine Place Apartments, a 144-unit property located in Westminster, Calif. Greg Reed and Kristen Croxton, senior vice presidents in Capital One Multifamily’s office in Newport Beach, Calif., originated the transaction. The borrower, Golden Horizon Realty, has now closed seven transactions with Capital One Multifamily, totaling $125 million.

The property was originally developed as condos in 2009, and acquired by Golden Horizon. The company engaged The REMM Group, a local management company, which developed a lease-up plan for the more than 60 vacant units. Simultaneously, Golden Horizon pursued a bridge loan through Capital One to replace the existing debt and allow 12-18 months to stabilize the property and transition to a long-term conventional loan.

“Golden Horizon has put all the elements in place to make this property a success,” Reed said. “Our capacity to offer a bridge loan allowed us to provide the transitional financing structure they required in advance of a conventional take-out loan.”

Croxton emphasized the advantages of the longstanding relationship between Capital One Multifamily and Golden Horizon. “Our relationship with Golden Horizon enabled us to tailor a financing solution based on their projections and business plan,” Croxton said. “Golden Horizon has an extremely strong track record.”

“Working with Kristen and Greg is always easy,” said Marianne Moy, president of Golden Horizon. “This transaction demonstrates their capacity to help us address a broad range of financing issues that come up in the course of running our business.”

The floating-rate loan has an 18-month term with one six-month extension and full-term interest only based on a 30-year amortization.