Walker & Dunlop has provided a $190 million refinancing package for six Class A and B multifamily properties in California and Nevada on behalf of Warmington Properties, Commercial Observer can first report.
Gregory Richardson and Scott Watson led the Walker & Dunlop team in the transaction.
The debt comprises five Freddie Mac loans and one Fannie Mae loan, each with a 10-year term and 30-year amortization schedule. The non-recourse, fixed-rate loans were arranged with a cash-out component.
The 1,240-unit portfolio includes Clock Lusk Apartments and Casa Grande Apartments in Cypress, Calif., Serrano Highlands in Lake Forest, Calif., Sycamore Greens Apartments in Vista, Calif. and The Clubs at Rhodes Ranch and The Martin Apartments in Las Vegas.
Walker & Dunlop utilized Fannie Mae’s Green Rewards Program for The Martin Apartments, securing an early rate lock and low interest rate.
“This portfolio is a testament to our strong relationship with Warmington and the GSEs. Our team was not only able to meet and exceed our client’s specific financing needs for each individual loan, but also managed to close the large portfolio in a short time frame,” Richardson said in prepared remarks. “Given Warmington’s long-term ownership, commitment to value enhancements, and decades of industry experience and talent, we are pleased to have financed this portfolio.”
“These refinances are part of a strategic plan to move Warmington Properties towards a more institutional grade investment platform,” said Mike Riddlesperger, the chief financial officer at Warmington Properties. “The capital resulting from these refinances will be reinvested alongside that of several strategic partners to significantly expand our portfolio throughout the Western States. We like to think of apartments as being part of our DNA here at Warmington and feel we can leverage our long history of owning and operating multifamily assets for the benefit of our investors.”
Each property has an average occupancy of over 95 percent.