Located 13 miles north of San Antonio, the property includes one- and two-bedroom apartments, a fitness center, four outdoor swimming pools, a spa, gated access, courtyards and walking trails. The apartment community is situated near Interstates 10 and 210, the San Antonio International Airport and Phil Hardberger Park.

“Among many things we do on behalf of our clients is constantly monitor their real estate holdings and the financing tied to the assets, and advise them on when there is a beneficial opportunity to refinance. In the case of Castle Hills, we refinanced this asset in 2014 using a floating rate loan with two years of interest only,” Inman tells GlobeSt.com. “Fast forward to 2017: the interest-only period had ended and the LIBOR index was increasing, which resulted in the borrower having to pay higher debt service on the in-place financing. But what still was compelling was where fixed-rate pricing was at the time, so we approached the client, showed them the benefits of refinancing and were able to extend the interest-only period out an additional three years. With the interest-only period extended, the debt serviced decreased, which increased the property's net cash flow and the borrower's cash-on-cash return, making for an overall better long-term investment.”

In the first half of 2017, Walker & Dunlop tripled its total 2016 green originations, closing $3.8 billion in green loans through Fannie Mae and Freddie Mac. For example, Walker & Dunlop executed a $75.6 million Green Up loan in addition to another Freddie Mac Green Up loan of $52 million for a suburban Sacramento property.

“Having closed over a dozen transactions with Walker & Dunlop already, it's no surprise they executed flawlessly on the refinance of The Place at Castle Hills,” says Ross McCallister, principal of MC Companies. “Alex and his team guided us through the entire process and was able to deliver additional cost savings by executing on Freddie Mac's Green Up program.”

SAN ANTONIO—The proceeds of $33.45 million loan will be used to refinance an existing loan and fund environmental improvements. The loan has been secured on behalf of borrower, MC Companies, for The Place at Castle Hills, a class-B garden-style property that features 680 units, according to Walker & Dunlop Inc.

The execution utilized Freddie Mac's Green Up financing program, which offers favorable rates and generates savings for borrowers whose properties meet certain criteria for reduced energy and water consumption. As a company offering green financing, Walker & Dunlop encourages borrowers to take advantage of those types of financing options that positively impact the environment. Some of the improvements that will be made The Place at Castle Hills will include low-flow kitchen and bathroom faucet aerators, shower heads and toilets.

Managing director, Alex Inman, led the Walker & Dunlop team.

“We saw an opportunity for the borrower to save a significant amount of money by refinancing with a long-term fixed rate product through Freddie Mac's Green Up and index lock programs,” Inman says. “We mitigated the interest-rate volatility during underwriting with the index lock and closed the loan in under 60 days, all while significantly reducing the borrower's annual debt service requirements. All in all, this execution was a highlight in the MC Companies/Walker & Dunlop portfolio.”

Located 13 miles north of San Antonio, the property includes one- and two-bedroom apartments, a fitness center, four outdoor swimming pools, a spa, gated access, courtyards and walking trails. The apartment community is situated near Interstates 10 and 210, the San Antonio International Airport and Phil Hardberger Park.

“Among many things we do on behalf of our clients is constantly monitor their real estate holdings and the financing tied to the assets, and advise them on when there is a beneficial opportunity to refinance. In the case of Castle Hills, we refinanced this asset in 2014 using a floating rate loan with two years of interest only,” Inman tells GlobeSt.com. “Fast forward to 2017: the interest-only period had ended and the LIBOR index was increasing, which resulted in the borrower having to pay higher debt service on the in-place financing. But what still was compelling was where fixed-rate pricing was at the time, so we approached the client, showed them the benefits of refinancing and were able to extend the interest-only period out an additional three years. With the interest-only period extended, the debt serviced decreased, which increased the property's net cash flow and the borrower's cash-on-cash return, making for an overall better long-term investment.”

In the first half of 2017, Walker & Dunlop tripled its total 2016 green originations, closing $3.8 billion in green loans through Fannie Mae and Freddie Mac. For example, Walker & Dunlop executed a $75.6 million Green Up loan in addition to another Freddie Mac Green Up loan of $52 million for a suburban Sacramento property.

“Having closed over a dozen transactions with Walker & Dunlop already, it's no surprise they executed flawlessly on the refinance of The Place at Castle Hills,” says Ross McCallister, principal of MC Companies. “Alex and his team guided us through the entire process and was able to deliver additional cost savings by executing on Freddie Mac's Green Up program.”