Walker & Dunlop, Inc. announced today that it structured $19,491,400 in financing for the acquisition and rehabilitation of Dandridge Towers. Located in Nashville, Tennessee, a city and metropolitan area seeing rapid population growth, the 153-unit, senior-living apartment community provides an important affordable housing option for older residents of the city.
Led by Vice President Rob Rotach, Walker & Dunlop secured a 40-year, fixed rate, fully amortizing loan for LHP Capital, LLC, the developer and manager of Dandridge Towers. The acquisition and rehabilitation of the property was financed through Section 221(d)(4) of the Department of Housing and Urban Development's (HUD) Substantial Rehabilitation program, which insures mortgage loans to facilitate the new construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families, elderly, and the handicapped. Additionally, the Dandridge Towers property qualified for reduced HUD Mortgage Insurance Premiums (MIP) due to its affordability.
The property was financed in conjunction with 4% Low Income Housing Tax Credits from the Tennessee Housing Development Agency, designated for affordable properties. In addition to unit upgrades and accessibility enhancements, the renovations will feature a number of water- and energy-related green improvements.
Mr. Rotach stated, "With Nashville's continued growth, it is more important than ever to ensure affordable housing remains an option for long-time residents of the city. The rehabilitation done on Dandridge Towers will provide Nashville's senior residents with an updated, environmentally-friendly place to call home."
Dandridge Towers, situated just outside downtown Nashville, is in one of the fastest growing metro areas in the nation. Nashville has seen an influx of residents in recent years, particularly younger ones, due to its relatively low cost of living, and growth in industries such as healthcare and manufacturing. The region is expected to experience population growth of over 9% in the coming years, putting it on track to reach over two million residents by the year 20201.
While Nashville's recent population growth has generated an expansion of urban housing, the need to preserve affordable housing options for the city's residents is increasing. Originally constructed in 1983, Dandridge Towers has provided affordable housing to elderly residents for nearly four decades. The rehabilitation of the building will enable it to house seniors for decades to come.
In 2017, Walker & Dunlop closed over $1.4 billion in HUD origination volume, a 54 percent increase over 2016, and it was ranked the 4th largest HUD lender and the largest HUD servicer in the country2. Learn more about Walker & Dunlop's ability to lend on senior living properties:
- Walker & Dunlop Structures $40 Million in HUD Financing for Group of Diverse Healthcare Facilities
- Walker & Dunlop Closes Unique $17.3 Million Construction Loan for Affordable Assisted Living Facility
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.
