Walker & Dunlop (NYSE: WD) announced that it has arranged nearly $16 million in Freddie Mac financing for the acquisition of three Sec. 8 housing communities located in the Southeast.
The borrower, Stonebridge Global Partners, used the three loans to acquire Oak Hammock in Jacksonville, Fla.; Forest Hills Village in Birmingham, Ala.; and Villa North Apartments in Thomasville, Ga.
The properties have a total of 439 apartments and were approximately 95% occupied at the time of closing. The loans were funded through Freddie Mac's Targeted Affordable Housing (TAH) program.
Each loan is interest-only for the first five years and has a 30-year amortization schedule. The loans for Oak Hammock and Villa North are for 15 years while the loan for Forest Hills Village is for 12 years.
Obtaining the interest-only period enhanced the returns to the sponsor, allowing them to bid competitively and ultimately win the deals. Additionally, Freddie Mac stood by its quotes as the markets moved and Freddie Mac’s Index Lock program was utilized to ensure funding occurred on time for two of the transactions, according to Walker & Dunlop.
The origination team consisted of Jeffrey Lawrence, senior vice president, and Matt Baptiste, assistant vice president, who are based in Walker & Dunlop's Atlanta office.
“We are excited to be working with the teams at Walker & Dunlop and Freddie Mac once again,” said Eli Mizrahie, managing partner of Stonebridge Global Partners, in a statement. “As Stonebridge continues to grow, our focus of acquiring quality assets in strong rental markets, where we can enhance value remains at the core of our investment strategy.”
