DALLAS-Olympus Real Estate Partners has pulled together a $496.9-million financing package with high-powered sales appeal for a buyer looking to take control of the entire Walden Residential portfolio. A fourth-quarter closing is eyed for the 21,560-unit, 69-property portfolio.

The loan arranger, Stuart Wernick, president of Dallas-based Quantum First Capital, says the capital change-out retired a higher rate mezzanine loan and replaced it with a five-year facility at a floating rate interest with strong appeal for a prospective buyer. “Any new buyer would find this attractive as an assumption,” he tells GlobeSt.com about the revised financing between Green Park Financial LP of Bethesda, MD and Olympus affiliate, WMC Management, successor to Walden Residential Inc.

Based on a deal of this magnitude, market sources say the loan reflects an interest rate on the variable side slightly north of 2.5%.

Eight months ago, the borrower inked a $479.2-million, Fannie Mae master credit facility with an expansion option. Wernick says the option was exercised well in advance of the expiration, boosting the bottom line to $496.9 million to take advantage of low market rates. Walden channels acquisitions and dispositions through the facility, which enables a juxtaposition of assets with no pre-payable penalty.

The Olympus affiliate borrower used 52 multifamily properties in six states as collateral. The remaining 17 properties on the market had debt with other lenders that was assumed years ago and couldn’t be included in the new facility, according to Wernick. For previous story, click here.

Walden went private in February 2000 with a $630-million, five-year loan from Green Park. By moving in advance of that expiration, Wernick says “they were able to take advantage of lower rates and re-price their loan.” And with Green Park in the lender’s seat for the last four years, the deal wasn’t overly shopped. “It was a proactive measure for both lender and borrower to facilitate a structure that made the best sense,” he says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.