TODAY’S DEALS: Walker & Dunlop Originates $108M Fannie Mae MHC Loan

Walker & Dunlop Inc. and Fannie Mae announced the recent closing of a $108 million loan for a manufactured housing community; and R3 Funding arranges $23.6 million in financing for student housing.

Bethesda, Md.—Walker & Dunlop Inc. and Fannie Mae announced the recent closing of a $108 million loan for a manufactured housing community located in Lakeland, Fla. Walker & Dunlop worked with Keystone Commercial Capital on behalf of the borrower, Blair Group, to rate-lock the loan just 15 days after receiving the signed loan application from the borrower.

Walker & Dunlop’s team, led by Senior Vice President Brendan Coleman, partnered with Keystone Commercial Capital’s Ryan Nelson and Charlie Williams to originate the 10-year, fixed-rate loan with four years of interest only. The loan is somewhat unique in that it carries a seven-year yield maintenance period, providing the borrower with significantly greater prepayment flexibility. Coleman comments, “Due to Fannie Mae’s innovative loan structure, we were able to tailor this cash-out loan with a fantastic long-term interest rate and maximum pre-payment flexibility to the borrower. It was quite a feat to rate-lock the deal in such a short period of time, but we were determined to take advantage of these historically low interest rates. Walker & Dunlop is proud to have now provided financing for Blair Group’s entire MHC portfolio, a true testament to the depth of our collective experience in the manufactured housing sector.”

Jeffery Hayward, senior vice president and head of the Multifamily Mortgage Business, Fannie Mae, comments, “We are thrilled to have partnered with Walker & Dunlop on the Cypress Lakes MHC transaction. Fannie Mae has been providing liquidity to the manufactured housing market for more than a decade and we are excited to have provided over $8 billion in volume since the inception of our program.  Financing manufactured housing communities is not only good business, it also provides affordable ownership and rental options for many families, particularly for seniors, throughout the country.”

R3 Funding arranges $23.6M in financing for student housing

Coastal CarolinaNew York—R3 Funding, a national lender correspondent providing origination and workout services, has arranged a $23.6 million fixed rate CMBS loan for a Conway, S.C., student-housing community. The announcement was made by Ray Potter, managing partner of R3 Funding.

Monarch 544, located at 650 Highway 544 in Conway, consists of a total of 222,322 square feet of off-campus student housing for Coastal Carolina University. There are over 125 residences there in all—92 four-bedrooms and 36 two-bedrooms. Each residence is fully furnished, with in-unit washers and dryers and private bedrooms and bathrooms. Community-wide amenities include a hammock lounge, fitness center, pool and lighted sand volleyball court.

The CMBS financing that R3 Funding arranged is for a 10-year term and features a 30-year amortization. The LTV is 75 percent.

“Monarch 544’s resort-style setting makes it a great housing solution for Coastal Carolina University’s students,” says Potter. “We were happy to be able to connect ownership in a timely fashion with the financing that best suited its needs.”

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