Walker & Dunlop, Inc. (NYSE: WD) announced today it originated a $47,159,000 United States Department of Housing and Urban Development (HUD) 221(d)(4) new construction loan for Aviva, a Class A+ multifamily project in Mesa, Arizona. Housing Trust Group, based in Coconut Grove, Florida is the borrower and Aviva marks the first project for the firm in the Arizona market.
The financing for Aviva is a HUD 221(d)(4) construction to permanent loan that is fully amortizing over 40 years. The program allows for long-term mortgages of up to 40 years that can be financed with Government National Mortgage Association (GNMA) Mortgage Backed Securities. As of June 2016, Walker & Dunlop was the fourth largest U.S. Department of Housing and Urban Development multifamily lender, based on loans closed.
The project, located at 8350 E. Baseline Road, has a total development cost of $63 million and will consist of 325 one-, two-, and three-bedroom apartments in a luxury gated, garden-style community. Construction recently commenced with a scheduled opening in the third quarter of 2018.
The Walker & Dunlop team that arranged the financing was led by Frank Baldasare, senior vice president in the firm’s Atlanta office. Commenting about the transaction, Mr. Baldasare said, “We are pleased to facilitate Housing Trust Group’s expansion into the Arizona market with the financing of Aviva. As a result of our partnership with HUD, Walker & Dunlop was able to meet the loan and interest rate expectations of our borrower.”
Housing Trust Group’s Chief Executive Officer, Matthew Rieger, stated, “Walker & Dunlop’s innovative and flexible financing solutions enabled us to enter the greater Phoenix metropolitan market to build Aviva, a stylish, ‘green’ multifamily community tailored to the area’s working professionals. We’re delighted that Walker & Dunlop shared our vision for creating a unique, walk-able community that caters to various lifestyles and introduces more urban-style living to a historically suburban area.”
Aviva was designed by local architecture firm Biltform Architecture Group and will be certified to the National Green Building Standard™. Amenities will include a large state-of-the-art 9,000 square foot clubhouse with a kitchen, media room, arcade, business center, conference room, fitness center with yoga and spin studios, two pools with cabana beds, hot tubs, fire pits and electric car charging stations. The property will also have extensive green space and outdoor amenities including walking trails, a volleyball court and fit stations, barbecue grilling stations, a dog park, and a playground. Monthly rents will range from $1050 to $1500.