Housing Not Only Fills Need But is Future-Thinking

Locale Apartments are pre-wired for Google Fiber.

REDWOOD CITY, CA—It is common knowledge that Silicon Valley housing can’t be built fast enough to accommodate the cataclysmic influx of residents. Job growth continues on its upward trajectory, with seemingly no end in sight, or at least for the foreseeable future. Another newly constructed class-A property adds 133 units to the inventory, under the assumption that every unit helps.

Walker & Dunlop Inc. recently closed a $51.11 million loan for the conventional multifamily property, Locale Apartments. The loan is structured to include 10 years of interest-only payments at a low, fixed interest rate, well below 4%.

The loan was processed as a Fannie Mae near-stabilization execution, which offered competitive proceeds, exceeding 100% loan to cost, which will allow the borrower, Acclaim Companies Inc., to retire the construction loan and preferred equity financing. The Walker & Dunlop team was led by Ralph Lowen, Jeff Burns and Justin Nelson.