BETHESDA, Md., June 13, 2019 /PRNewswire/ -- Walker & Dunlop, Inc. announced today that it structured a $5,849,000 loan with the United States Department of Housing and Urban Development (HUD) for Walnut Village, a garden-style affordable senior housing community in Cookeville, Tennessee. LHP Capital, LLC, a Knoxville-based firm specializing in development and management of affordable multifamily housing, is the lead developer of the property, which is owned and managed by Highlands Residential Services, the local housing authority.
Led by Senior Vice President Rob Rotach, the Walker & Dunlop team arranged the 40-year, fixed-rate, fully amortizing financing for the borrower, Highlands Residential Services. Drawing on their extensive experience with HUD financing, the team secured the loan through the agency's 221(d)(4) program, which facilitates the new construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families. The project is also supported by an issuance of tax-exempt bonds and an allocation of four percent Low Income Housing Tax Credits (LIHTC) in partnership with the Tennessee Housing Development Agency.
In addition to coordinating the various parties involved in the transaction, Walker & Dunlop played a critical role in ensuring the financing closed in a timely manner despite the January 2019 United States government shutdown. While many HUD offices and functions were unavailable, Rotach worked closely with HUD's Atlanta office to process the loan application promptly, resulting in the issuance of a firm commitment just seven business days following the reopening of the government.
"We are grateful to our business partners, LHP Capital and Walker & Dunlop, for helping us secure strong project financing for Walnut Village," said Dow Harris, Executive Director at Highlands Residential Services. "This financing will enable us to move forward with renovations that will significantly improve this senior community."
Mr. Rotach commented, "As the second largest demographic in the U.S., providing aging baby boomers with affordable housing is crucial to assuring a healthy and comfortable quality of life. It is an honor to play a role in providing housing solutions and employing our expertise to serve our most vulnerable citizens."
Located a few blocks from Cookeville's historic downtown, Walnut Village provides residents convenient access to nearby local amenities, outdoor parks, and grocers. The accessibly-priced apartments cater to the elderly or disabled and are located within 17 one-story buildings and one two-story building. Each of the community's 80 units is covered by a project-based Section 8 Housing Assistance Payments (HAP) Contract. Walnut Village's substantial rehabilitation will be complete in early 2020 and will include accessibility improvements and energy efficiency upgrades across the community, as well as new kitchens, baths, and flooring in the units.
Walker & Dunlop is one of the largest multifamily lenders in the country and was the largest non-bank affordable lender in 2017, according to the Mortgage Bankers Association's Commercial/Multifamily Origination Rankings. In 2018 alone, Walker & Dunlop closed over $1 billion in transaction volume for affordable properties. Learn more about Walker & Dunlop's footprint in the affordable housing market here:
- Walker & Dunlop Arranges $16 Million in Financing for Affordable Housing Development in San Mateo, California
- Walker & Dunlop Structures $19 Million in Financing for Affordable Senior Housing in Nashville
About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate finance companies in the United States. The company provides a comprehensive range of capital solutions for all commercial real estate asset classes, as well as investment sales brokerage services to owners of multifamily properties. Walker & Dunlop is included on the S&P SmallCap 600 Index and was ranked as one of FORTUNE Magazine's Fastest Growing Companies in 2014, 2017, and 2018. Walker & Dunlop's 700+ professionals in 29 offices across the nation have an unyielding commitment to client satisfaction.
SOURCE Walker & Dunlop, Inc.