Commercial real estate finance company Walker & Dunlop, Inc., headquartered in Bethesda, Maryland, has closed a $2.4 billion Fannie Mae credit facility, the largest transaction in company history, to refinance 67 multifamily properties located in the Washington, D.C. metropolitan area.
The borrower, Southern Management Corporation (SMC), is the largest privately-owned residential property-management company in the Mid-Atlantic region. The portfolio financed is comprised of 22,439 units in total, over 60 percent of which qualify as mission-driven, affordable housing under Federal Housing Finance Agency (FHFA) guidelines.
“Walker & Dunlop’s creativity, tenacity, and market knowledge resulted in a superior execution for this large and complex transaction amidst the uncertainty of a rapidly unfolding financial and health crisis,” said Suzanne Hillman, President and CEO of Southern Management Corporation. “I am so glad that Southern chose to work with Brendan Coleman and his team at W&D. The effort, skill, expertise, and responsiveness of all parties involved was unprecedented.”
Multifamily Finance Senior Managing Director, Brendan Coleman, and team members Chris Forte, Connor Locke, Colin Coleman, Adam Johnston, and Skye Stansbury structured the financing to provide the borrower maximum flexibility, with staggered maturities across a mix of fixed and floating-rate, full-term, interest only financing.
Willy Walker, Walker & Dunlop Chairman and CEO commented, “It is an incredible honor to be the selected financing partner for Southern Management, and is reflective of the team, brand, and capabilities we have built at Walker & Dunlop.” Mr. Walker added, “Our team, along with our partners at Fannie Mae, did an exceptional job executing this enormous transaction under exceedingly challenging circumstances given the current environment. I am deeply appreciative of the trust and confidence Southern Management placed in Walker & Dunlop.”
“At Fannie Mae we are committed to the development and preservation of affordable housing for America’s communities,” stated Jeffery Hayward, Executive Vice President of Multifamily, Fannie Mae. “This $2.4 billion Southern Management transaction gave us the opportunity to partner with one of our top DUS lenders, Walker & Dunlop, using the credit facility, one of our most flexible financing products, to structure a winning solution for the borrower while delivering affordability to the Washington, D.C., market.”