Walker & Dunlop Procures $50M Loan for Phoenix Asset

The company utilized Freddie Mac’s Mod-Rehab Program, which features three years of interest-only payments at a floating rate. Almost $10 million has been allocated for improvements.

Arrowhead Summit
Arrowhead Summit

Working on behalf of Cortland Partners, Walker & Dunlop Inc. has secured a $49.6 million loan for Arrowhead Summit, a 412-unit, Class B, garden-style community in Glendale, Ariz. Walker & Dunlop Managing Director Stephen Farnsworth led the team in arranging the Freddie Mac acquisition financing for the borrower’s first investment in the Phoenix area.

Cortland Partners recently bought the asset from PrivatePortfolio Group for more than $60 million. The company utilized Freddie Mac’s Mod-Rehab Program, which features a float-to-float execution starting with, followed by a seven-year floating rate loan with two years of interest-only payments. According to Yardi Matrix, the property was 96 percent occupied at the time of the arrangement.

Large-Scale Renovation

“Cortland Partners has a fully integrated platform including overseas manufacturing, interior design, construction and management which allows them to execute large-scale renovation projects such as Arrowhead Summit,” said Farnsworth in a prepared statement.

More than $9 million has been allocated for renovations to amenities, exteriors, interiors and green upgrades which are expected to last almost two years. The property will also feature granite countertops, farmhouse sinks and fixtures, stainless steel appliances, fireplaces and Nest thermostats.

With one- and two-bedroom units, this community’s interior amenities include washers, dryers, microwave ovens and free Wi-Fi. Fireplaces are also available in select units. The 22 two- and three-story buildings are spread across a 22.3-acre site which offers easy access to both 79th Avenue and Union Hills Drive. Built in 1999, Arrowhead Summit is half an hour away from downtown Phoenix. PetSmart and Farmers Insurance are both located nearby. Common area amenities include:

  • two swimming pools
  • fitness center
  • clubhouse
  • picnic areas with barbecue grills
  • sand volleyball court

In another recent deal, Walker & Dunlop structured a $707 million Fannie Mae credit facility with a mix of fixed- and floating-rate loans that offered staggered maturity dates for the acquisition of 24 student housing communities.

Image courtesy of Walker & Dunlop