Walker & Dunlop announced closed on a $17.5 million loan for a Bronx multifamily property through its high yield lending platform, Commercial Property Funding, LLC.
The short term high yield bridge loan was used to fund the acquisition of 916-926 Southern Boulevard, as well as reserves related to capital improvements and operating shortfalls.
The team, led by Geoff Smith, managing director and head of originations for WDCPF, and Tom Toland, senior vice president, Multifamily Finance originated the deal with Gold Edge Capital.
Toland commented, “We were able to execute a unique bridge loan product in order to provide the client with max proceeds for an acquisition that involves a major renovation in a dynamic market. It was a very creative execution to get the client exactly what they needed.”
Built in 1911, Southern Boulevard features two adjacent pre-war buildings making up 66 multifamily units that will be transformed into 105 units of revitalized, market rate multifamily housing, plus 12,330 s/f of ground floor retail space along Southern Boulevard.
Due to an expired lease with a local government agency, the subject is being acquired nearly vacant, and building renovations can begin immediately.
The neighborhood has minimal vacancies and is primed for rent growth due to a tremendous lack of market rate housing available in the Bronx. The property is located just thirty minutes from midtown Manhattan.
Smith commented, “The Southern Boulevard transaction shows the abilities of Walker & Dunlop and its proprietary lending unit, WDCPF, as a creative structured lending operation across both multifamily and commercial real estate classes. Walker & Dunlop will also have the opportunity to provide future permanent financing.”