Walker & Dunlop and its affiliates have provided a $72.2m in loans to Key Real Estate Company for the acquisition of six multifamily properties located in Texas and Louisiana.
The firm structured the financing into bridge, conduit and mezzanine portions.
Three adjustable rate loans for $35.4m – cross-collateralized, cross-defaulted and secured by three of the multifamily properties – carry a two-year term with an 87% loan-to-cost.
A $31.4m fixed rate conduit loan on the remaining properties was structured at a 71% loan-to-value with four years of interest-only payments and a 30-year amortization; and a $5.4m mezzanine loan on the properties matched the terms and structure of the conduit loan.
“The borrower had different requirements for the different properties,” Timothy Koltermann, CEO of Walter & Dunlop’s affiliate, Walter & Dunlop Commercial Property Funding, told Real Estate Capital.
“This showed that we can be a full service platform, whether it be fixed rate, floating rate or high-yield mezzanine financing.”
The borrower, a repeat Walter & Dunlop client, is a “very experienced institutional real estate company that’s backed by three individuals with significant net worth,” Koltermann said. Founded in 2005, Key Real Estate Company owns and manages more than $300m in multifamily assets, with more than 2,200 apartments and 25,000 sq ft of commercial.
Earlier this month, Walter & Dunlop announced that its loan-servicing portfolio surpassed the $40bn mark, comprised of more than 4,300 commercial loans from across the United States.
At the time, Chairman and CEO Willy Walker called it a “huge milestone for our company.”
“Willy Walker has said many times over that he intends to make Walker & Dunlop the premier commercial real estate company in the United States,” Koltermann added, “And I would think that this [deal] is a pretty good example of what he’s trying to do.”