NEW YORK CITY — Bethesda, Md.-based multifamily lender Walker & Dunlop is getting a jump on what it sees as the imminent turnaround of the commercial real estate industry by completing its plan to go public. The company began trading on the New York Stock Exchange December 15 under the ticker symbol “WD”. Walker & Dunlop priced 10 million shares of common stock at a price of $10 per share.
For the lender, going public provides it with the high brand recognition its publicly traded competitors already have. As of last year, Walker & Dunlop was the ninth largest commercial real estate lender in the country and the 5th largest originator of Fannie Mae loans. It also provides the company with greater access to capital than it had as a private company. There are other benefits as well.
“[Going public] opens up a whole new realm of opportunities for partnerships and growth, and attracting talented individuals to our platform,” says William Walker, chairman, president and CEO of Walker & Dunlop.
The company will need the clout to help it achieve its long-term goals. Walker sees the next few years will see a much increased demand for commercial real estate loans as the economy rebounds, and his company plans to be in a position to take advantage of that. According to a registration statement with the SEC, the company expects to realize approximately $89.5 million in net proceeds from the offering, which will be used for general corporate purposes as well as to execute the company's growth strategy.
Walker & Dunlop plans to meet the need for commercial loan refinancing head on by expanding its origination and brokerage operations. Walker mentioned that each of the company's eight offices could see growth, and it was not outside of the realm of possibility for Walker & Dunlop to acquire smaller origination firms.
The company also detailed plans in its SEC registration statement to increase its number of healthcare loan originations, as it sees the sector having a strong potential for growth over the next decade. The company is also looking at adding an investment sales platform to its services. Finally, the company's increasing advisory services platform could mean that Walker & Dunlop could one day provide debt as well as equity options for clients.
“We've done extremely well through the past three years,” Walker says, adding, “Because we''ve done so well in the downturn, we feel extremely well positioned for — when capital starts coming back to the commercial real estate market — being able to grow and be able to gain market share.”
— Coleman Wood