Walker & Dunlop Provides $2.4B Fannie Mae Refinancing for Multifamily Portfolio in Metro D.C., Largest Loan in Company’s History
WASHINGTON, D.C. — Walker & Dunlop Inc. has provided a $2.4 billion Fannie Mae loan to refinance a 67-property multifamily portfolio in the Washington, D.C., metro area. The borrower is Virginia-based multifamily owner and manager Southern Management Corp. (SMC).
The portfolio includes 22,439 units in total, more than 60 percent of which qualify as affordable housing. The loan package features staggered maturities across a mix of fixed- and floating-rate, full-term, interest-only financing.
“This $2.4 billion Southern Management transaction gave us the opportunity to partner with one of our top DUS lenders, Walker & Dunlop, using the credit facility, one of our most flexible financing products, to structure a winning solution for the borrower while delivering affordability to the Washington, D.C.,” says Jeffery Hayward, executive vice president of multifamily at Fannie Mae.
The loan represents the largest transaction in Walker & Dunlop’s history, according to a statement from the company.
“Walker & Dunlop’s creativity, tenacity and market knowledge resulted in a superior execution for this large and complex transaction amidst the uncertainty of a rapidly unfolding financial and health crisis,” says Suzanne Hillman, president and CEO of SMC.
Brendan Coleman, Chris Forte and Connor Locke led a Walker & Dunlop team that structured the financing. Walker & Dunlop was the No. 1 Fannie Mae multifamily lender in 2019, closing approximately $8.5 billion of acquisition and refinancing loans through the agency.
In response to the outbreak of COVID-19, Fannie Mae recently established a mortgage forbearance program that allows options for borrowers to reduce or suspend their mortgage payments in the event they are unable to collect rent from tenants. Borrowers under the program must agree not to evict tenants for nonpayment during the 90-day mortgage relief period.
Southern Management Corp. is one of the largest privately owned residential management companies in the Mid-Atlantic region. The company owns 77 communities totaling over 25,000 units and employs more than 1,500 professionals.
— Alex Patton