DEAL OF THE DAY: Walker & Dunlop Structures $18M Loan for Multifamily Acquisition
- Oct 20, 2015
San Antonio—Walker & Dunlop of Bethesda, Md., provided an $18 million loan for the acquisition of Whispering Oaks Apartments in San Antonio.
The Walker & Dunlop team, representing the undisclosed borrower, used a Fannie Mae 10-year, fixed-rate loan that includes three years of interest-only payments. Furthermore, a Fannie Mae Early Rate (ERL) program was utilized. At the time of the transaction the property was 93 percent occupied.
The team that structured the loan was led by Dallas-based Vice President Alex Inman, who noted, “This is an excellent example of how well the execution works under the Fannie Mae DUS® (Delegated Underwriting and Servicing) model. Given that Walker & Dunlop is delegated to underwrite the loan on behalf of Fannie Mae, it took no more than a ‘stroke of the pen’ to change the loan over to a fixed-rate, and we never skipped a beat.”
Initially, the borrower requested a floating-rate loan but due to consistent changes in the market conditions, the loan structure was modified.
“We have closed many deals with Walker & Dunlop over the years, and as always, this execution was flawless. We were under a tight timeline, and even though we were concerned that it might disrupt the process, Walker & Dunlop changed from a floating rate loan to a fixed-rate loan, which was a better fit for the property and our management plan. Walker & Dunlop moved quickly and closed on time, as they have with every transaction we have done with them,” said the borrower.
The garden-style community, built in 1981, is located at 2370 NW Military Highway in the Whispering Oaks community. It totals 346 units of one-, two- and three-bedroom apartments nestled on 11.8 acres. Community amenities include a fitness center, three swimming pools, picnic areas, four on-site clothing facilities, a dog park, playground and business center. The new owner plans to continue renovation throughout the community, including unit upgrades, common area improvements and exterior renovations.
Image courtesy of Whispering Oaks Apartments’ Facebook Page