Walker & Dunlop Investment Partners has partnered with Canadian real estate company Ivanhoé Cambridge to form a programmatic joint venture.
The joint venture will make preferred equity investments in multifamily, student housing, and manufactured housing properties throughout the United States.
Its strategy will focus on identifying opportunities with stabilized properties, primarily in top 25 MSAs, with a range of three- to ten-year investment horizons. The venture aims to address the growing need for flexible gap financing at an attractive cost of capital amidst a low cap rate, high-liquidity capital markets environment in the residential space.
“We’re excited to grow our relationship with Ivanhoé Cambridge through this program by capitalizing on the low cap rate, high-liquidity conditions driving demand for gap financing in the market today,” said Sam Isaacson, President of Walker & Dunlop Investment Partners. “Our product is designed to help sponsors achieve their desired leverage targets with incremental proceeds at a much lower cost of capital than common equity. Ivanhoé Cambridge is a world-class institution, and we look forward to continuing our successful partnership together.”
“This partnership with Walker & Dunlop Investment Partners is part of our broader strategy to further diversify our U.S. residential investment portfolio across markets and risk spectrum,” said Charles-Antoine Lussier, Senior Vice President, Investments, Residential and Hotels at Ivanhoé Cambridge. “Walker & Dunlop is a market leader for multifamily financing with a nationwide network. We have worked with them for many years, and we are glad to expand our existing relationship to provide incremental proceeds and more flexibility across the capital structure.”