Walker & Dunlop, Inc. announced today that it structured $53,604,000 in bridge financing for the acquisition of a five-property, 1,104-unit multifamily portfolio located in Jacksonville, Florida.
Led by Alex Inman, the Walker & Dunlop team arranged a unique, cross-collateralized financing structure to meet the needs of the borrower, S2 Capital, LLC. The team also negotiated special release provisions to enable the borrower to sell individual properties if desired. As part of their business plan, the borrower will complete an extensive value-add program for each property in the portfolio, including improvements to common amenities, significant interior upgrades, and rebranding.
"Walker & Dunlop was instrumental in providing an optimal bridge loan to meet S2's goal for this project. Having closed nearly $400 million in transactions with Alex and his team, it was no surprise the 5-property Jacksonville portfolio was executed perfectly," commented Scott Everett, Principal at S2 Capital, LLC. "Due to the depth of their knowledge, the team arranged financing that will allow us to maximize value and deliver outstanding returns."
Mr. Inman added, "Value-add properties continue to prove a prudent investment across the country. The multifamily housing industry is enjoying a strong period of growth and activity thanks to favorable economic conditions, job growth, and rising population in many markets."
Originally constructed in the 1960s, each property in the portfolio is a garden-style apartment community with standard community amenities such as pools, ample outdoor space, laundry facilities, fitness centers, and leasing offices. The properties represented an excellent value-add opportunity in the Jacksonville market, which has strong employment fundamentals and high demand for multifamily housing. Each of the multifamily communities is located near major thoroughfares, providing quick access to the central business district, major employers, shopping centers, and local grocery chains.
Walker & Dunlop is a leader in the multifamily space; the firm ranked #1 with Fannie Mae for multifamily lending in 2017 and was also ranked within the top five largest multifamily lenders with Freddie Mac and HUD. From 2014 to 2017, Walker & Dunlop also grew its brokered loan originations at a compound annual rate of 28 percent and in 2017, the Capital Markets team closed a record $7.3 billion in total brokered volume with over 235 different capital providers. To learn more about Walker & Dunlop's diverse financing options visit our website.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate services and finance companies in the United States providing financing and investment sales to owners of multifamily and commercial properties. Walker & Dunlop, which is included in the S&P SmallCap 600 Index, has over 650 professionals in 29 offices across the nation with an unyielding commitment to client satisfaction.
