Top Fannie Mae lender Walker & Dunlop has originated a $125.9m loan to refinance the 645-unit Shorewood Heights apartment complex on Mercer Island in the state of Washington.
The loan takes out $71.5m in previous Fannie Mae financing, placed on the property shortly after Pinnacle Realty and CS Capital Management bought it for $110m in September of 2010.
The joint venture purchased the property from Security Properties and Principal Global Investors, who paid $141.3m for it around the peak of the market.
The complex of 40 two-story buildings at 3209 Shorewood Drive, built in 1949, sprawls across 44.5 acres on the northern side of Mercer Island. The island, surrounded by Lake Washington, is connected to the adjacent city of Seattle by Interstate 90’s floating bridge connector.
Pinnacle, a multifamily housing manager with approximately 175,000 units under management, holds a $17bn portfolio of commercial real estate in more than 250 cities across the United States, Canada, and Asia.
Walker & Dunlop was the top Fannie Mae Delegated Underwriting and Servicing (DUS) lender in 2014. DUS lenders underwrite, close, deliver, and service Fannie Mae multifamily loans, typically retaining one-third of the risk on every loan.
Fannie Mae provided $28.9bn in financing to the multifamily market in 2014, working with lender partners to finance 446,000 units of multifamily housing.
Update: A Walker & Dunlop spokesperson said the $71.5m financing is a 10-year, fixed rate, interest-only loan. The borrower also recently procured an additional $21.5m supplemental loan with the same terms.