Walker & Dunlop, Inc. (NYSE: WD) (the “Company”) announced it recently closed a $50,000,000 loan for Greenwood Capital Investment’s refinancing of Autumn Chase Apartments, a 550 unit property located in Hoffman Estates, Illinois. The borrower plans to use a portion of the proceeds toward future multifamily development opportunities.
This cash-out refinancing transaction was underwritten with a 10-year term including 9.5 years of yield maintenance and a 30-year amortization schedule. Walker & Dunlop and TSB Capital Advisors (TSB) were able to obtain a waiver whereby Fannie Mae agreed to lend up to 80% of the property value on a cash-out refinance. With recent increases in interest rates, the Company was able to get the borrower in a position to rate lock based on rental collections achieved at the property through March of 2015. Once the collections for April were received, Walker & Dunlop was able to increase the loan proceeds $1.3 million without any added cost to the borrower at the same low rate the borrower obtained four weeks prior.
Leading the Walker & Dunlop team was Managing Director, Will Baker. Mr. Baker stated, “Based on Greenwood’s outstanding track record operating this asset for many years, they were able to access the equity they had accumulated in the project to grow their multifamily development platform. Our outstanding relationship with Fannie Mae and TSB Capital Advisors enabled a seamless transaction.”
Built in 1973 and located in a Northwest suburb of Chicago, Autumn Chase Apartments offers studio, 1- and 2-bedroom apartments. This property has an average occupancy rate of 95% since the borrower took ownership and repositioned the property. The garden-style apartment complex offers community amenities including controlled intercom entry system, garages with automatic door openers, outdoor swimming pool with sundeck, private picnic area, and a tennis court. Hoffman Estates is the headquarters for Sears Holdings Corporation, the Midwest headquarters for AT&T and the American headquarters for Mori Seiki, making it an ideal location for multifamily properties like Autumn Chase Apartments.