Walker & Dunlop arranges $36 million affordable housing renovation for eight-property portfolio

Brooklyn, NY Walker & Dunlop, Inc. arranged a $35.6 million loan to facilitate the refinance of a scattered site, sponsored by Grower Housing Development Fund Corp. The Section 8 affordable apartment portfolio comprises of 251 units, spanning eight buildings and located in the Williamsburg submarket.

Walker & Dunlop’s affordable team, led by Frank Cassidy and John Gilmore, arranged the refinance on behalf of the client, a repeat Walker & Dunlop and Fannie Mae borrower. The team worked alongside the New York City Housing Preservation & Development (NYC HPD) and New York City Housing Authority (NYCHA) to secure a Fannie Mae 10-year fixed rate, five-year interest only, 35-year amortization, moderate rehabilitation loan, which provided $8 million in renovation dollars to preserve affordable housing for this project long term.

“This project required a team with extensive affordable finance expertise and intensive collaboration from many stakeholders,” said Frank Cassidy, managing director of FHA Finance at Walker & Dunlop. “We are thrilled to bring this project full circle and provide the financing for capital improvements needed to preserve affordable housing for many years to come. We appreciate the hard work of Fannie Mae, NYC HPD, and NYCHA for their help in executing this highly complex and structured transaction.”

The client is planning to rehab the portfolio with a CapEx budget that equates to $30,000+/unit. This rehab will extend the project’s useful life of the properties and enable the client to preserve long-term affordable housing. The client also plans to allocate an estimated $250,000 for green improvements.

The portfolio is located near I-278, I-495, Broadway, Jackie Robinson Pkwy., and FDR Dr., major vessels that connect residents to a variety of employment centers, including Denizen Bushwick, Briz Forwarding, IFC Freight, Bushwick Job Center, and premier shopping and restaurants.

“The lack of affordable housing is an issue of national concern. We are dedicated to creating solutions and being at the forefront of this issue to provide critical financing needed to preserve long-term affordable housing,” said John Gilmore, senior managing director of affordable production at Walker & Dunlop.