AMARILLO, TX—An $86 million financing transaction allowed borrowers of a five-asset 1,208-unit multifamily portfolio to recapitalize the equity, clear up deferred maintenance and renovate units. The portfolio consists of workforce housing owned by Pilgrim V and GRA Equities.

During the last several years, the portfolio has suffered as a result of being undercapitalized due to a previous partner's insolvency. This indirectly caused the properties to lose competitiveness within each respective market.

The transaction was closed by Walker & Dunlop Commercial Property Funding LLC, the New York City-based wholly owned high-yield first mortgage and mezzanine lending platform of Walker & Dunlop Inc. The platform provides funding on investments collateralized by multifamily, commercial, hospitality and healthcare-related real estate assets. In addition, it capitalizes both stabilized and transitional assets across all property types in the United States.

“The Walker & Dunlop Commercial Property Funding loan provided the capital that's necessary to reposition the properties and subsequently provide a bridge between renovation and stabilization that will allow cash flows to season in preparation for a longer term take-out loan,” says Gary Romaniello, principal of GRA Equities.

Geoff Smith, Kimberly Riordan and Randy Efron led the Walker & Dunlop team, which financed a three-year interest-only floating-rate mortgage with 84% loan to cost. The financing solution provides the ownership group with flexible repayment terms as the properties re-stabilize and become available for sale or refinance. Both Atlas Residential and GRA Equities are approved HUD/FHA borrowers and management sponsors, making the companies ideal candidates to refinance through the HUD 223(f) lending program with the company's FHA group, GlobeSt.com learns.

“We are excited to provide support as they re-stabilize these workforce housing assets,” Smith says.

The funding for the Texas properties consisted of $12 million for Wind Tree in Amarillo, TX, $6.45 million for the Warwick in Abilene, TX, and $4 million for Coulter Landing, also in Amarillo, TX. The remaining funding was for two properties in Kissimmee and Oakland Park, FL.

Atlas Residential, which manages the properties for the new owners, is led by Steven Ivankovich and has acquired, developed and managed more than 85,000 multifamily units during the past several decades in the US and UK. The company remains committed to providing affordable workforce housing across US portfolios.

“Walker and Dunlop is committed to providing renovation, bridge and permanent capital to all classes of affordable, working class and luxury apartment communities throughout the country,” Smith tells GlobeSt.com. “The P5 recapitalization financing is a prime example of our commitment as the funding allows the sponsorship to rehabilitate the asset for its next 20-year life cycle.”

AMARILLO, TX—An $86 million financing transaction allowed borrowers of a five-asset 1,208-unit multifamily portfolio to recapitalize the equity, clear up deferred maintenance and renovate units. The portfolio consists of workforce housing owned by Pilgrim V and GRA Equities.

During the last several years, the portfolio has suffered as a result of being undercapitalized due to a previous partner's insolvency. This indirectly caused the properties to lose competitiveness within each respective market.

The transaction was closed by Walker & Dunlop Commercial Property Funding LLC, the New York City-based wholly owned high-yield first mortgage and mezzanine lending platform of Walker & Dunlop Inc. The platform provides funding on investments collateralized by multifamily, commercial, hospitality and healthcare-related real estate assets. In addition, it capitalizes both stabilized and transitional assets across all property types in the United States.

“The Walker & Dunlop Commercial Property Funding loan provided the capital that's necessary to reposition the properties and subsequently provide a bridge between renovation and stabilization that will allow cash flows to season in preparation for a longer term take-out loan,” says Gary Romaniello, principal of GRA Equities.

Geoff Smith, Kimberly Riordan and Randy Efron led the Walker & Dunlop team, which financed a three-year interest-only floating-rate mortgage with 84% loan to cost. The financing solution provides the ownership group with flexible repayment terms as the properties re-stabilize and become available for sale or refinance. Both Atlas Residential and GRA Equities are approved HUD/FHA borrowers and management sponsors, making the companies ideal candidates to refinance through the HUD 223(f) lending program with the company's FHA group, GlobeSt.com learns.

“We are excited to provide support as they re-stabilize these workforce housing assets,” Smith says.

The funding for the Texas properties consisted of $12 million for Wind Tree in Amarillo, TX, $6.45 million for the Warwick in Abilene, TX, and $4 million for Coulter Landing, also in Amarillo, TX. The remaining funding was for two properties in Kissimmee and Oakland Park, FL.

Atlas Residential, which manages the properties for the new owners, is led by Steven Ivankovich and has acquired, developed and managed more than 85,000 multifamily units during the past several decades in the US and UK. The company remains committed to providing affordable workforce housing across US portfolios.

“Walker and Dunlop is committed to providing renovation, bridge and permanent capital to all classes of affordable, working class and luxury apartment communities throughout the country,” Smith tells GlobeSt.com. “The P5 recapitalization financing is a prime example of our commitment as the funding allows the sponsorship to rehabilitate the asset for its next 20-year life cycle.”