Walker & Dunlop, Inc. announced today that it structured a $54,840,000 Fannie Mae acquisition loan for Highland Gardens Apartments in Mountain View, California. The seven year loan was structured as full term interest only with a 65% loan-to-value ratio and a 1.25x DSC ratio.
Highland Gardens Apartments is a 187-unit garden-style apartment community built in 1963 and recently renovated in 2013. The updated luxury apartments include new appliances, private patios, and granite countertops. Community amenities include a new fitness center, swimming pool, bocce ball court, and a brand new BBQ cabana. Previously, the asset was operated as two separate properties that are split down the middle by a parcel of land owned by the San Francisco Public Utility Commission (SFPUC). This parcel includes underground water mains that provide water to the nearby San Francisco Bay area.
Bryan Frazier, managing director, led the Walker & Dunlop team that structured the loan. Mr. Frazier stated, “The strategy and size of this acquisition is a testament to both the high operating performance levels of the Silicon Valley area and the focus of experienced, yield-seeking real estate investors on creating value by renovating older, existing assets and improving operations.” Walker & Dunlop was able to work with the borrower and Fannie Mae to gain a comfort level with the SFPUC parcel in the middle of the property and meet an expedited rate lock and closing timeframe.