Walker & Dunlop has raised $240 million from an investment fund that aims to support affordable housing solutions throughout the country.
Fund 124, which targets low-income individuals, those with special needs, seniors and subsidized housing, was put together by the CRE firm's affordable equity team.
All together, the pool will back the development of 18 properties in 15 markets. They are located in 10 states, including Kansas, Texas, Maryland, Utah, Missouri, Michigan, Connecticut, Florida, Idaho and California.
Some perks of Fund 124 include generating a forecasted $898 million economic impact, creating roughly 4,542 jobs, providing essential services such as meal and after-school programs, as well as funding housing projects with Section 8 contracts, which help provide rental assistance to low-income families. Other details include the fund holding an average debt leverage ratio of 32 percent, with 62 percent of the pool's investors being repeat clients of W&D.
“Fund 124 represents an exciting milestone that will create meaningful and lasting change in communities across the U.S,” Dudley Benoit, senior managing director of affordable equity investor relations at W&D, said in a statement.
“The fund’s focus on affordable housing, along with our long-standing partnerships with experienced developers, underscores our dedication to providing safe, high-quality housing to those who need it most.”
Last year, W&D fetched $167 million from Fund 119, which supported 1,044 residential units in 12 states and 19 communities. Also, the Maryland-based firm has raised more than $10 billion in Low-Income Housing Tax Credit equity. And from 2021 to 2024, W&D has originated $6.3 billion in workforce and affordable financing.
The capital comes on the heels of Mesirow's big recent housing fund, which raised $1.25 billion and will focus on underperforming Class A apartment buildings in the top 25 to 30 U.S. cities.
For multifamily as a whole, MSCI Real Assets reporting revealed some troubling data. The multifamily price index dropped 1.5% from March to April and 12.1% over the past year, which resembles the patterns seen during the 2008 Great Recession. Whether that trend continues remains to be seen, as economic uncertainty driven mostly by tariffs and elevated interest rates continues to linger.
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