BETHESDA, Md., Feb. 15, 2018 /PRNewswire/ -- Walker &
Dunlop, Inc. (NYSE: WD) (the "Company") announced today that it
arranged construction and permanent financing through the United
States Department of Housing and Urban Development (HUD) in the
amount of $44,685,300 for
30 East Adams in
Chicago, Illinois. Built in
1926 and known to locals as the old Hartman Building, the historic
property is home to the iconic Miller's Pub in the heart of the
Chicago Loop. The loan enables the adaptive reuse of the office
building into 176 market rate multifamily units with ground level
retail. This is one of many projects intended to restore the Loop's
old office buildings as apartment buildings.
Leading Walker & Dunlop's team, Carolyn McMullen and Kyle Peterson arranged the financing for
first-time HUD borrower Cedar Street Companies ("Cedar Street" or
the "Developer"). Based in Chicago, the Developer has become well-known
throughout the city for successfully converting several similar
historic buildings into multifamily projects.
The Company's team utilized HUD's 221(d)(4) program, allowing
the Developer to capitalize on savings from the existing historic
tax credits. The innovative team also implemented HUD's green
mortgage insurance premium (MIP), making this the first ever
mixed-use project to receive such benefits. The fully-amortizing
loan allowed the borrower to remove their interest rate risk by
locking in the rate on a 40-year term with two years of
interest-only payments.
Erik Larson, the Developer's
managing director of finance, remarked, "Walker & Dunlop was
instrumental to providing an optimal debt facility to meet Cedar
Street's multiple goals for this project, primarily long-term
ownership at a historically low cost of capital. Because of
its wealth of contacts and product knowledge, Walker & Dunlop
was able to arrange a long-term, very low interest rate product
that will allow us to maximize the historic value of this building
and deliver once in a lifetime returns to our investors."
Ms. McMullen, senior vice president of Walker & Dunlop's FHA
Finance group remarked, "This was a complex financing with a lot of
moving parts. We were fortunate to be working with a
sophisticated and experienced partner in Cedar Street." She added,
"The Chicago HUD office's direction and commitment to working with
Walker & Dunlop was instrumental in our ability to structure
and close the complex 221(d)(4) loan in December to meet the
borrower's timing constraints."
Vice President Mr. Peterson added, "Cedar Street has an uncanny
ability to unlock the value of underutilized assets through
creative design and finance. Loans for substantial renovation
and new construction have become more challenging to
procure. Facilitating a relationship with HUD provides Cedar
Street access to attractive capital to further enhance their
development strategy."
Once complete, 30 East Adams
will include a rooftop deck, fitness center, and a new retail
outlet on the ground floor adjacent to McDonalds and Millers Pub,
two existing tenants who will continue to occupy their respective
spaces. Located next to an L train stop and just blocks from
shopping and cultural attractions, the property is a
transit-oriented development that is rated as a 'Walker's Paradise'
and 'Very Bikeable'1.
Walker & Dunlop's team closed over $1.4 billion in HUD origination volume during
2017 and was ranked by Commercial Mortgage Alert as the #2 most
active agency multifamily lender in 20172. Learn more
about the Company's ability to lend on HUD and adaptive reuse
projects:
- Walker & Dunlop Closes $94
Million Loan, Preserving 151 Units of Affordable Housing in
Manhattan
- $14.9 Million Loan Arranged by
Walker & Dunlop for EVEN Hotel in Downtown Pittsburgh's Historic Kaufmann
Building
1Walk Score®
2Commercial Mortgage Alert, February 2, 2018
About Walker & Dunlop
Walker & Dunlop (NYSE:
WD), headquartered in Bethesda,
Maryland, is one of the largest commercial real estate
services and finance companies in the
United States providing financing and investment
sales to owners of multifamily and commercial properties.
Walker & Dunlop, which is included in the S&P SmallCap 600
Index, has over 600 professionals in 28 offices across the nation
with an unyielding commitment to client satisfaction.
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SOURCE Walker & Dunlop, Inc.