WC Smith Lands $183M Refi Through Green Certification Program
The company is using the loans, originated by Walker & Dunlop, to refinance Park Chelsea and 2M, two LEED-certified communities in Washington, D.C.
By Jeffrey Steele
Walker & Dunlop Inc. has originated a total of $183 million in loans for a pair of Washington, D.C., LEED-certified multifamily communities, Park Chelsea and 2M.
Park Chelsea at The Collective
The origination team was led by Brendan Coleman, Keith Melton and David Strange, managing directors. The team arranged the transactions through Fannie Mae’s Green certification execution and the U.S. Department of Housing and Urban Development’s refinance program on behalf of repeat borrower WC Smith.
WC Smith is among the Mid-Atlantic’s leading developers of affordable housing, while Walker & Dunlop is one of the most active lenders using environmental rewards programs to obtain pricing breaks and structural enhancements for its clients owning and developing properties that meet specified sustainability requirements.
Park Chelsea is the first of three communities in the Capitol Riverfront of Washington D.C. that together will be referred to as The Collective. As a LEED Silver building, Park Chelsea qualified for Green Building Certification financing. That enabled Walker & Dunlop to structure discounted pricing, maximize loan proceeds and achieve an expedited closing timetable.
Park Chelsea, 75 percent leased at closing, has had such success since opening that it captured Delta Associates’ 2016 best lease-up pace for a D.C. rental community.
LEED Gold certified, 2M is a mixed-income apartment property in NoMa, a premier locale near legendary Union Station. About 93 percent of 2M’s units are reserved for low-income residents, including Section 8 voucher holders. The refinance loan will offer substantial annual debt service savings for WC Smith, just two years after closing the original HUD development loan. At closing, 2M was 99 percent leased, evidence of the enclave’s robust demand for affordable rental alternatives. Upscale amenities at 2M include a rooftop pool, grilling area, an indoor fitness facility, a basketball court and 24-hour concierge.
“These two transactions and the success these properties have seen illustrate renters’ strong desire for affordable rental housing that is also environmentally conscious,” Coleman said.
“We are fortunate to work with WC Smith, one of the most well-respected developers and operators of affordable housing communities, on these financings. WC Smith is very focused on increasing the supply of affordable housing in the D.C. market, and the 2M transaction demonstrates that affordability can be achieved through environmentally-friendly development and best-in-class amenities.”
“The Walker & Dunlop team’s expertise and deep understanding of the nuances of Green financing options available in the markets resulted in major savings for our company,” WC Smith chairman & CEO Chris Smith said. “This ultimately enables us to reach our goals of providing the local community with much-needed housing options.”
