Seeking to build a pipeline of financing for multifamily properties, commercial real estate finance company Walker & Dunlop has launched its large loan bridge program.
The new program will originate adjustable-rate loans on multifamily properties that do not currently qualify for permanent financing but will be candidates for permanent funding through one of the company's channels once stabilized or repositioned. The firm is a Fannie Mae DUS, Freddie Mac Program Plus and MAP- and LEAN-approved FHA lender.
The Multifamily and FHA Finance groups of Walker & Dunlop are focused on lending to property owners, investors and developers of multifamily properties across the country.
The new program, which will focus on loans $30 million and above with loan terms of up to three years on multifamily properties, is being funded with capital from a large Canadian institutional investor, a premier U.S. real estate investment manager and Walker & Dunlop.
"Walker & Dunlop earned almost $200,000 in net interest income during the second quarter on the interim loans we have originated using our own balance sheet and warehouse lines from banks," says Willy Walker, chairman and CEO of Walker & Dunlop, in a release. ‘This new program provides Walker & Dunlop with significant equity capital to dramatically scale this line of business to meet our borrowers' needs at this time in the real estate cycle.’
He adds, ‘This program not only meets our clients' needs but also creates a pipeline of high quality assets for Walker & Dunlop to finance once the properties stabilize. We are very excited to have raised this quantity of equity capital from two large, strategic institutional investors, and we look forward to scaling this program and potentially raising new funds with distinct investment parameters going forward.’
Walker & Dunlop is a 5% investor in the program, which will have over $850 million in lending power, inclusive of leverage. The parties may elect to increase capacity to meet demand.
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