Walker & Dunlop, Inc. (NYSE: WD) announced today it closed eight Freddie Mac loans totaling $256,304,000 secured by a portfolio of market rate properties in Florida, Georgia, North Carolina, and Texas. The portfolio included a total of 2,864 units that were financed for Cortland Partners.
The loans utilized the Freddie Mac Value-Add Program and were structured with three-year terms, full term interest-only with floating rate and flexible pre-payment options. The Freddie Mac Value-Add Program offers short-term, cost-effective financing for modest property upgrades and benefits including competitive pricing, lower execution costs, and a central location for upgrade and permanent financing. Cortland Partners is a Freddie Mac Select Sponsor, a designation reserved for Freddie Mac’s respected sponsors, chosen for their demonstrated success in the market and their loyalty.
Stephen Farnsworth, managing director, led the Walker & Dunlop team. Mr. Farnsworth commented, “Cortland’s experience with multifamily value-add renovations and the Freddie Mac Value-Add Program allowed us the opportunity to close these eight acquisition loans, from seven different sellers, in a very short time frame. Freddie Mac’s deal teams did an excellent job managing the commitment process across multiple regions and markets.”
Cortland Partners, Chief Investment Officer, Mike Altman, stated, “It is always a pleasure to work with the Walker & Dunlop team and Freddie Mac. All parties worked tirelessly and efficiently to ensure an expedited, well-organized closing. Our experience with Walker & Dunlop, including their dedication to detail, enables us to continue to build our relationship.”
Each property received an average of $22,000 in hard cost renovations to upgrade both the common area amenities and interiors of the respective properties. These interior and exterior renovations will be completed in order to increase overall net operating income at each property with a specific focus on improving unit interiors.
The Cortland Partners full portfolio includes more than 35,000 apartment homes and reaches over 60,000 residents throughout the Southern region of the United States.