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DALLAS—When the initial lender was unable to deliver, a Fannie Mae green rewards loan provided the key to a successful transaction. Walker & Dunlop structured the Fannie Mae loan for the acquisition of Las Terrazas, a 230-unit garden-style workforce housing apartment community. The transaction was led by John Hinder and Andrew Tapley, both members of the company's multifamily finance group.
Walker & Dunlop worked closely with Fannie Mae to meet the borrower's compressed timeline, closing the loan in slightly more than 30 days from the application date. The team achieved a favorable rate for the borrower, identifying the green rewards program as the best choice for the transaction.
“We have a deep understanding of Fannie Mae green multifamily loan programs, allowing us to execute quickly and meet the borrower's closing deadline,” Hinder tells GlobeSt.com. “Leveraging the green rewards program also allowed us to reduce the interest rate and provide exceptional terms relative to conventional loan programs.”
The program provides lower pricing, up to 5% in additional loan proceeds, and free energy and water audit reports to finance green improvements. Loan terms include a 12-year term with two years of interest-only payments, followed by a 30-year amortization schedule.
“We were very pleased to earn the opportunity to execute on the acquisition financing for this repeat client when the initial lender was unable to deliver,” Hinder says. “The terms we were able to deliver will position this property for continued success in the coming years.”
Las Terrazas is located in the Far North Dallas neighborhood, near the Central Expressway and Lyndon B. Johnson Freeway, and a 20-minute drive from downtown. The property has access to several local amenities including restaurants, outdoor parks, public schools and grocery stores. Built in 1968, the property underwent $1.3 million in renovations in 2015 and currently exceeds the market's average occupancy level at nearly 95%.
Unit offerings include studios, as well as one- and two-bedroom options. Each apartment is fully equipped with patios or balconies, air conditioning and ceiling fans, and utility expenses are included in rent costs. The community's amenities include a pool, clubhouse, lighted tennis courts, a playground and picnic area, exercise room, controlled access, and bilingual staff.
Walker & Dunlop continues to expand its reach within the green housing market. Last year, the company quadrupled its total 2016 green originations, closing $6.35 billion in green loans through Fannie Mae, Freddie Mac and HUD.
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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.
