STANTON, CA—Walker & Dunlop Inc. has provided $62.5 million for Freddie Mac financing for two Southern California multifamily properties. The Bethesda, MD-based firm provided the loans for Latitude 33 Apts. in Escondido and Briarwood Square Apts. in Stanton.
SVP Bryan Frazier led the team that structured the refinance loans under Freddie Mac’s capital-markets execution program for Latitude 33 Apts., a newly constructed, 198-unit, class-A property, on behalf of a Newport Beach-based borrower who specializes in the acquisition, development and management of multifamily properties throughout California. The team structured the $37.6 million as two loans, financing the property’s midrise apartments and townhomes separately, in order to meet the borrower’s short-term and long-term investment plans. Additionally, the team provided takeout financing to pay off the existing construction loan and return capital to the borrower.
VP Jason Krupoff led the team that structured the $24.9-million acquisition loan for Briarwood Square Apts. This was the first Freddie Mac loan for the Southern California-based borrower. In order to meet the tight timeframe stipulated by the borrower, Walker & Dunlop expedited the underwriting package, enabling Freddie Mac to process the loan and issue a firm commitment in 17 days, Krupoff and his team structured and closed the transaction 26 days after receiving the signed application, over the holiday season.
“Freddie Mac has a significant role in the financing of multifamily properties in Southern California,” Frazer tells GlobeSt.com. “Freddie Mac, like Fannie Mae, are very reliable and durable sources of capital over the past several years, and we anticipate they’ll continue to be very relevant in multifamily finance in the future.”
Frazer adds that life insurance companies as well as CMBS lenders have a strong desire to increase market share in multifamily finance in 2014. His firm provides a broad access to capital that, in addition to Fannie Mae, Freddie Mac and FHA, includes life companies, CMBS and balance sheet financing. “We lend on a nationwide basis; however, California is a very important market, and San Diego County specifically is a market in which we’re doing a lot of business. We’d like to continue to grow our portfolio there.”
Walker & Dunlop is the third-largest Freddie Mac lender in the enation and has been the top lender for Fannie Mae countrywide for the past two years. As GlobeSt.com reported in January, Walker & Dunlop gave the market a heads-up on its loan origination volumes as the company completed its year-end audit. According to its unaudited estimates, originations for the year reached $8.4 billion, an increase of 18% over 2012 for a five-year compound annual growth rate of 33%. Fourth-quarter loan-origination volume reached $2.3 billion. W&D ended the year with a loan servicing portfolio of $38.9 billion, an increase of 11% over 2012.