Walker & Dunlop, Inc. closed a $20,670,000 loan for Botanica Apartments in Mandeville, Louisiana using Fannie Mae’s Early Rate Lock program.
The acquisition loan was structured as a 15-year fixed rate loan with seven years interest-only and a 1.25x debt-service coverage ratio, amortizing over 30 years. Stephen Farnsworth, managing director, led the Walker & Dunlop team that structured the loan for Key Real Estate Company.
Farnsworth commented, “Being able to provide the purchaser with a Fannie Mae execution was highly beneficial given their long term outlook.”
Botanica Apartments, a 228-unit multifamily property is located in St. Tammany Parish, one of the most affluent parishes in the New Orleans metro area boasting some of the highest household income levels and is one of the fastest growing parishes in the state.
St. Tammany Parish is referred to as part of the “North Shore” throughout metropolitan New Orleans, due to its location north of Lake Pontchartrain. St. Tammany was sparsely populated in the 1950’s, however, now exceeds 200,000 in the wake of Hurricane Katrina in 2005. As a result of the high demand for this location, Botanica Apartments has an average occupancy rate of 95%.
The property is located adjacent to Premier Center, which is in the process of adding a Whole Foods Market scheduled to open in 2016 and has an extensive variety of dining and shopping locations. The property includes a clubhouse and fitness center, business center, resort style swimming pool, tennis court, dog park and three gated access entrances. Upon acquisition, the borrower plans to complete an estimated $4 million in capital improvements.
Walker & Dunlop also announced a $20,815,300 loan for The Preserve at Rock Springs, a 184-unit apartment complex in Rock Springs, Wyoming. The loan was structured using the U.S. Housing and Urban Development’s (HUD) Section 223 (a) (7) program.
The purpose of this refinance was to secure long term financing with a low fixed interest rate, and the new 40-year loan obtained at historically low interest rates accomplishes this.
Senior Vice President, FHA Production, Ralph Lowen commented, “Walker & Dunlop was able to deliver a customized financing solution to Berland Development Group that will provide significant savings over the life of the financing.”
Built in 2010, The Preserve at Rock Springs is a market rate apartment community consisting of 11 residential buildings, featuring 1-, 2-, and 3-bedroom apartments, providing tenants with upscale living in the heart of Sweetwater County.
The apartment complex is situated on approximately 10.5 acres, featuring a spacious clubhouse, fitness center, children’s playground, business center, a resort style pool, and access to local hiking trails.