Walker & Dunlop Completes $47M Financing for Atlanta Asset

The transaction enabled Starlight U.S. Multi-Family to acquire the 282-unit Westside Heights apartment community in the West Midtown submarket.
Westside Heights. Image courtesy of Walker & Dunlop

Walker & Dunlop completed the sale of a Class A, 282-unit multifamily property in Atlanta for buyer Starlight U.S. Multi-Family and structured a $47 million loan for the Canadian company to purchase the asset from The Worthing Cos.

Led by Senior Vice President David Gahagan and Senior Analyst Niki Perez, the Walker & Dunlop team completed the transaction within a compressed timeline and secured a five-year, interest-only loan for Starlight from a life company. Walker & Dunlop’s Investment Sales team of Pat Jones and Chris Goldsmith handled the acquisition for Starlight, a repeat client.

“We are pleased to complete this financing with very attractive terms in partnership with Walker & Dunlop. The results achieved reflect the high quality of the property as well as its extremely strong location,” Martin Liddell, Starlight’s Chief Financial Officer, said in a prepared statement.

The Worthing Cos. completed the four-building luxury property in 2017. Westside Heights is located at 903 Huff Road N.W. in the West Midtown submarket of Atlanta near more than 150 restaurants, art exhibits, high-end retail and the 22-mile Atlanta Beltline trail. It is also located near the intersection of interstates 75 and 85, in close proximity to the Midtown office market, as well as downtown Atlanta and Buckhead. Amenities include a rooftop lounge with dining/grilling stations, pool and fitness center. The property has controlled access entry gates and a 24/7 concierge.

Starlight, a privately-held company based in Toronto, retained the management arm of The Worthing Cos. as the property manager. The Worthing Cos. now manages three Atlanta multifamily communities for Starlight, including Landmark at Coventry Pointe, a 250-unit, garden-style property. Starlight announced last week it had completed the acquisition of the remaining 8.5 percent interest in Landmark at Coventry Pointe through its Starlight U.S. Multi-Family (No. 1) Value-Add Fund for $3.7 million. The fund, which now owns 100 percent of the asset, said it had refinanced the mortgage for net proceeds of approximately $2.6 million as well as a $3.8 million capital advance line which can be drawn to fund future improvements at the property.  

More Starlight Deals

In January, Starlight U.S. Multi-Family acquired a 400-unit, garden-style apartment community located at 18301 Cottonwood Drive in Parker, Colo., a Denver suburb. Completed in 2018, Broadstone Montane has 23 three-story buildings with floor plans ranging from studios to three-bedroom townhomes. Previously called Broadstone Vantage Point, the asset was 72 percent occupied at the time of acquisition. Located near E-470 and Highway 83, the property offers access to the Denver Tech Center and downtown Denver.

In November, Starlight Investments received an $800.4 million loan to finance acquisition of a 23-property multifamily portfolio with nearly 7,300 units across eight states. HFF facilitated the financing, a Freddie Mac Structured Pool Transaction loan, on behalf of the Starlight U.S. Multi-Family (No. 5) Core Fund. The portfolio, which had an average occupancy of 93 percent overall, included properties in Atlanta, Denver, Las Vegas, Dallas, Houston and Phoenix.