BETHESDA, Md., Sept. 3, 2014 /PRNewswire/ -- Walker &
Dunlop, Inc. (NYSE: WD) and Freddie Mac (OTCQB: FMCC) announced
today the closing of the first loan through Freddie Mac's new
Direct Purchase of Tax-Exempt Loans initiative, which helps to keep
rental housing affordable for lower income families and increase
cost-effective financing for tax-exempt multifamily properties.
W&D originated a $14,280,000 loan
for The Lakewoods, an affordable, senior-housing community
located in Dayton, OH, for
Millennia Housing Development, Ltd (Millennia).
The Lakewoods is a 417-unit, senior-restricted apartment
building that offers amenities including a crafts space, library,
fitness center, beauty shop, billiards room, and outdoor terraces
on each floor. Approximately 95% of the units will receive
subsidies under a HUD Senior Preservation Rental Assistance
Contract (SPRAC) and the property is Low-Income Housing Tax Credits
(LIHTC) restricted.
"We are proud to team up with Walker & Dunlop and Millennia
to provide an efficient and cost effective tax-exempt financing
option to owners of affordable apartments," said Kimball Griffith, Freddie Mac Multifamily vice
president of affordable sales and investment. "The Direct Purchase
of Tax-Exempt Loans offering is more cost efficient for the
borrower than publicly offered credit enhanced bonds, and is the
first step toward securitization."
The Walker & Dunlop team, led by Atlanta-based senior vice president, Frank
Baldasare, originated and structured the acquisition rehab loan
with a 16-year fixed-rate and 35-year amortization and worked
closely with Freddie Mac to ensure that the first execution under
this new initiative was seamless and adhered to the client's time
constraints.
Freddie Mac's Direct Purchase of Tax-Exempt Loans initiative was
introduced after The Lakewoods had been initially underwritten. Mr.
Baldasare immediately recognized that the new execution would
benefit his client.
Mr. Baldasare commented, "Freddie Mac's new execution eliminates
many of the costs that would normally be associated with bond
issuance, making it ideal for projects like The Lakewoods,
developed with 4% Low-Income Housing Tax Credits. The fact that
Walker & Dunlop was the first lender to execute on this new
product shows the depth of our experience in the affordable space
and the strength of our relationship with Freddie Mac. We're
excited to help Freddie Mac grow this initiative and, as the
agencies continue to focus on affordability, it's great to have a
new financing solution to offer our clients in this market."
Christine Robertson, vice
president of Millennia Housing Development, Ltd., commented, "The
Millennia Companies thanks Walker & Dunlop, Freddie Mac and the
Ohio Housing Finance Agency for partnering with us through this
quick journey from award to closing in under nine months. With only
twelve SPRAC awards in the country and Freddie Mac's new Direct
Purchase of Tax-Exempt Loans offering involved, all of our
financing partners had to sustain faith in Millennia and the
Lakewoods. We also had to work quickly to ensure that the closing
occurred before the Lakewoods' mortgage matured. Only through
commitment to this timeline and the end goal from all of our
partners could we achieve this closing."
About Walker & Dunlop
Walker & Dunlop (NYSE:
WD), headquartered in Bethesda,
MD, is a leading provider of commercial real estate
financing solutions nationwide. Our comprehensive suite of
financing solutions allows us to originate loans for our own
balance sheet, CMBS conduit, and investment partnerships, or for
sale to Fannie Mae, Freddie Mac, HUD, life insurance companies,
banks and other CMBS providers. Walker & Dunlop has more than
400 employees located in 20 offices nationwide. For more
information, please visit www.walkerdunlop.com and follow us on
Twitter at @Walkerdunlop.
About Freddie Mac
Freddie Mac was established by
Congress in 1970 to provide liquidity, stability and affordability
to the nation's residential mortgage markets. Freddie Mac supports
communities across the nation by providing mortgage capital to
lenders. Today Freddie Mac is making home possible for one in four
home borrowers and is one of the largest sources of financing for
multifamily housing. Additional information is available at
FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog
FreddieMac.com/blog.
SOURCE Walker & Dunlop, Inc.