BETHESDA, MD-Walker & Dunlop secured twoacquisition loans totaling $19.8 million underFreddie Mac's Capital Markets Execution Programfor properties owned by CAPREIT in Newport News,VA. The properties are adjacent multifamily affordable housingcommunities called Arboretum Place andSilver Hill at the Aboretum.

The transaction is a standard multifamily loan execution with anaffordable housing component, Walker & Dunlop vice presidentDustin Swartz tells GlobeSt.com. Both propertiesare affordable, under Section 42 of the Low Income HousingTax Credit program. Arboretum Place contains 76 LIHTCunits, or 41% of the total units, and Silver Hill at the Arboretumcontains 123 units, or 80%.

"The initial tax credit expired in 2012 but they operate underan extended affordability agreement for another 15 years," Swartzexplains. Both loans were structured with 10-year terms with3-years interest only, followed by 30-year amortization periods.Financing for Arboretum Place was underwritten to a 79% LTV with a1.40x debt-service coverage ratio. The financing for Silver Hill atthe Arboretum was underwritten to a 77% LTV with a 1.30xdebt-service coverage ratio.