Walker & Dunlop Arranges $157M in Finance for Off-Campus Housing
Real estate finance specialist Walker & Dunlop Inc. reports that it originated $157.1 million in financing for off-campus student housing properties located nationwide last year, an indication of the popularity of that kind of multifamily development, particularly as sustained by the GSEs.
By Dees Stribling, Contributing Editor
Bethesda, Md.—Real estate finance specialist Walker & Dunlop Inc. reports that it originated $157.1 million in financing for off-campus student housing properties located nationwide last year, an indication of the popularity of that kind of multifamily development, particularly as sustained by the GSEs. The company has been in the student financing business for 25 years.
Last year, for example, the company provided $22.85 million in Fannie Mae financing for University Square Apartments and Laurel Ridge Apartments, both located near the Texas A&M campus, in College Station, Texas. The acquisition loans were structured with 10-year terms, with 2.5-years interest only, followed by 30-year amortization periods. University Square is a 149-unit garden-style property with one- and two-bedroom floor plans, while Laurel Ridge offers 284 two-bedroom units.
For Eagle’s West Apartments near Auburn University, in Auburn, Ala., Walker & Dunlop provided $11.627 million in Freddie Mac financing. The loan was structured with a 10-year term with two years interest only and a 30-year amortization period. As part of the deal, the company was able to secure a 77 percent loan-to-value for the cash-out refinance. Eagle’s West Apartments is a 201-unit property that offers recently renovated one- and two-bedroom apartments in 23 garden-style buildings.
For Elmira Jeffries, a property located adjacent to Temple University in Philadelphia, the company obtained $6 million in Fannie Mae financing. The refinance loan was structured with a 15-year term, followed by a 25-year amortization period. All units are furnished by the university through a master lease and feature full kitchens, living rooms and private bathrooms, which are not available in most other Temple residence halls.
The company oversaw two loans for the Pointe at MSU, which is near Mississippi State University in Starkville, Miss. The Pointe at MSU offers 1,392 beds in 408 units in 32 buildings. Its first phase was completed in 2010, Phase IIA was completed in 2011, and Phase IIB was completed in 2012. The financing included $21 million in Fannie Mae financing for Phase I in April 2012 and $23.76 million for Phase II later in the year. Both refinance loans were structured with a 10-year term and a 30-year amortization period.
