Walker & Dunlop, Inc. structured a $27,882,000 loan for Lakeside Landing in Tacoma, Washington.
The loan was structured as a 10-year fixed rate loan with six years of interest-only, followed by a 30-year amortization schedule and a 1.25x debt service coverage ratio.
The vast majority of the units qualified as affordable under current guidelines and therefore Freddie Mac was able to provide very attractive pricing to the sponsor, Hamilton Zanze & Company. Freddie Mac maintained their pricing for more than 60 days in the midst of several nationwide pricing increases. Financing was structured with six years of interest-only payments in order to ensure improvements could be performed and rent appreciation would be realized.
Craig Russell, senior vice president, led the Walker & Dunlop team. Russell commented,“Due to our long time relationship with Freddie Mac, they were able to extend their pricing beyond the normal duration enabling the client to obtain a customized financing structure suited for their needs.”