Walker & Dunlop, Inc. (NYSE: WD) (the “Company”) announced today that Walker & Dunlop Commercial Property Funding (“WDCPF”), the Company’s proprietary CMBS and high yield direct lending platform, closed an $18,000,000 CMBS acquisition loan for Norfolk Commerce Park in Norfolk, Virginia.
The loan was arranged by John B. Levy & Co. and structured as a 10-year fixed rate loan, with 3-years interest only, followed by a 30-year amortization schedule. Additional structuring was used to address multiple termination options and other factors that contributed to early rollover risk.
Geoff Smith, managing director and head of originations for WDCPF, commented, “By collaborating with our client and listening to their wants and needs, we were able to establish a mutually agreeable structure that allowed us to fulfill our client’s request for a CMBS execution despite the property’s challenging rent roll.”
Norfolk Commerce Park was constructed over a four year time and consists of a multi-tenant office and warehouse facility encompassing 331,686 rentable square feet. The property, located within the Central Norfolk submarket, consists of four parcels totaling 21.33 acres of land and is the closest substantial office location to the Norfolk Naval Base, which has attracted numerous defense contractors over the years. Key tenants of the property include URS Federal Services (URS), Federal Express Corporation (FedEx), and ITT Education Services.