Walker & Dunlop, Inc. (NYSE: WD) announced today it structured a $9,000,000 Fannie Mae loan for Autumn Springs Apartments, a 242unit, class B, conventional multifamily property in Columbus, Ohio.
The loan was structured as a Fannie Mae ten-year fixed rate loan with one-year interest-only, followed by a 30 year amortization schedule. The loan was exempt from Fannie Mae’s lending cap with rents less than 60 percent of area median income. This property is an excellent example of the affordable workforce housing that is currently a major focus for both Fannie Mae and Freddie Mac.
The property was acquired by Capital SMART in 2013. Since then, Autumn Springs Apartments has undergone $3 million in property renovations, including almost $2 million in interior upgrades. Repositioning the property generated tremendous value and provided a great opportunity to recapitalize the bridge debt into a long-term, low rate, Fannie Mae loan.
Vice President, Michael Liefer, led the Walker & Dunlop team. Mr. Liefer stated “Walker & Dunlop is pleased to have provided numerous acquisition/rehab loans to Capital SMART as they expand their portfolio. Capital SMART exemplifies the art of repositioning older assets with expert management, efficient construction, and always having the residents’ best interest in mind.”
Carl Schirtzinger, principal of Capital SMART, commented, “We value our relationship with Michael Liefer and the Walker & Dunlop team, as they lever their deep industry knowledge to provide us with competitive solutions from a wide range of sources. I feel what truly sets them apart is their excellent customer service and their ability to effectively manage the lending process which leads to smooth and timely closings.”
Built in 1972, Autumn Springs Apartments is located approximately 12 miles southwest of downtown Columbus, Ohio and 13 miles from Ohio State University. Residents have access to a magnitude of local shopping centers, including Giant Groceries, Dollar General, and T-Mobile. Property amenities include a picnic area, business center, fitness center, playground, and a swimming pool. As of October 2015, the property was 95.5% occupied.