Walker & Dunlop Closes $137M Financing for Orange County, Calif. Portfolio

Walker & Dunlop, Inc. (NYSE: WD) announced today it closed four Freddie Mac CME loans totaling $137,896,000 secured by a portfolio of multifamily properties in Orange County, California. The repeat Freddie Mac borrower has significant ownership experience in Orange County, having purchased its first property in the 1970s.
Bill Battaglia and Steve Natale led the Walker & Dunlop team that utilized Freddie Mac’s Index Lock and 150-day Early Rate Lock programs to lock the treasury on the same day the application was received from the borrower and close the loans five months later. These refinances were structured as 10-year fixed rate loans that included five years of interest-only.
Mr. Battaglia stated, “With growing volatility in the treasury market, Freddie Mac’s Index Lock program has become a very critical tool used by borrowers to gain more certainty in their cost of debt and, ultimately, their loan proceeds. Equally impressive is the speed of that execution. In this case the borrower was able to lock the treasury on the same day they submitted their signed application.”
Mr. Natale added, “The borrower received the best of both worlds, locking in a historically low interest rate at their desired proceeds and significantly reducing their prepayment penalty by extending the closing timeframe.”
The portfolio consists of four garden-style multifamily properties with a total of 819 units located in Huntington Beach and Anaheim, California. Amenities across the portfolio include clubhouses, fitness centers, pools, barbeque grills, volleyball courts, basketball courts, and playgrounds. All of the properties are located in highly desirable in-fill locations with easy access to the areas’ employment centers, beaches, and entertainment destinations. Orange County, located approximately half way between San Diego and Los Angeles, is well known for its yearlong warm weather, miles of beaches, and world famous entertainment destinations such as Disneyland.

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