Walker & Dunlop Arranges $86M for Portfolio Upgrade

The financing will support the renovation of 1,208 units in Florida and Texas, as well as enable the borrowers to recapitalize the assets and handle deferred maintenance.
Carribean Isle

Carribean Isle

Pilgrim V and GRA Equities have obtained $86 million in financing for a five-asset, 1,208-unit multifamily portfolio with properties in Kissimmee and Oakland Park, Fla., as well as Abilene and Amarillo, Texas. Walker & Dunlop structured the deal on behalf of the owners.

The loan provides the capital that’s necessary to reposition the properties and provide a bridge between renovation and stabilization that will allow cash flows, in preparation for a longer-term takeout loan,” said Gary Romaniello, Principal of GRA Equities.

Walker & Dunlop Commercial Property Funding LLC, a New York City-based high-yield first mortgage and mezzanine lending platform of Walker & Dunlop, facilitated the deal. The platform oversees finance for both stabilized and transitional assets across all domestic property types.

Geoff Smith, Kimberly Riordan and Randy Efron led the Walker & Dunlop team, which financed a three-year, interest-only, floating-rate mortgage at 84 percent loan-to-cost. The transaction allowed the borrowers to recapitalize the equity, clear up deferred maintenance and renovate units.

Over the last several years, the portfolio has suffered from a previous partner’s insolvency that indirectly caused the properties to lose competitiveness within their respective markets.

Both Atlas Residential and GRA Equities are approved HUD/FHA borrower and management sponsors, making them eligible to refinance through the HUD 223(f) lending program. Atlas Residential, which manages the properties for the new owners, has acquired, developed and managed over 85,000 multifamily units over the past several decades in the U.S. and UK.

Image courtesy of GRA Equities