MOUNTAIN VIEW, CA—Walker & Dunlop Inc. structured a $54.84 million Fannie Mae acquisition loan for Highland Gardens Apartments located at 234 Escuela Ave. The seven-year loan was structured as full term, interest only with a 65% loan to value and 1.25 debt service coverage. Previously, the asset was operated as two separate properties that are evenly split by a parcel of land owned by the San Francisco Public Utility Commission (SFPUC). This parcel includes underground water mains that provide water to the Bay Area.
Bryan Frazier, managing director, led the Walker & Dunlop loan team. Frazier tells GlobeSt.com:
“The loan that Walker & Dunlop provided for Highland Gardens was a great example of our ability to navigate through complex legal issues associated with the layout of the property and close within a short timeframe during one of the busiest months of the year.”
Highland Gardens Apartments is a 187-unit garden-style apartment community built in 1963 and recently renovated in 2013. The updated luxury apartments include new appliances, private patios and granite countertops. Community amenities include a new fitness center, swimming pool, bocce ball court and a barbecue cabana.
“The strategy and size of this acquisition is a testament to both the high operating performance levels of the Silicon Valley area and the focus of experienced, yield-seeking real estate investors on creating value by renovating older, existing assets and improving operations,” said Frazier. “Walker & Dunlop was able to work with the borrower and Fannie Mae to gain a comfort level with the SFPUC parcel in the middle of the property and meet an expedited rate lock and closing timeframe.”
Walker & Dunlop is a national commercial real estate finance company. The firm's scaled lending platform provides services to multifamily and commercial properties. Walker & Dunlop's biggest deal in its history occurred this week when it originated $670 million in senior housing loans, secured by a 52–property portfolio of facilities located in 19 states, primarily in Florida, North Carolina, New Hampshire and Utah.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
