Walker & Dunlop On Financing UIP's Tenleytown Project And What's In Store For Lenders In 2016

You might’ve heard about Urban Investment Partners’ recent $45M purchase of three Class-C office buildings in Tenleytown.

Here’s something you probably didn’t know, though—like so many others, the deal hinged on a complex financing arrangement put together by Walker & Dunlop.

“W&D’s capital markets team executed a complex, structured finance solution for the client,” says Dan Martin, an SVP at W&D’s Mid-Atlantic Capital Markets team (snapped above in the back row second from the left, along with W&D’s Brian Casey, Brad Cullumber, David Redmond, Michael Bowles and Chris King).

For UIP, W&D arranged an “acquisition, bridge loan facility that transitions to a construction loan upon approved redevelopment plans,” says Chris Hew VP, Mid-Atlantic Capital Markets, who managed the transaction.

The plan is to completely gut two of the buildings, with roughly 100k SF between them, and turn them into Class-A residential space. A third building will continue to function as a commercial rental property.

UIP owns and manages more than 2,500 apartments in Washington, DC, and Maryland, and its primary focus includes “heavy lift” renovations like the Tenleytown project.

Looking forward to the year ahead, W&D’s Mid-Atlantic Capital Markets team say it's closely watching developments in the bank regulations arena, due to their ability to impact every aspect of real estate financing.

“Risk retention regulations for securitized assets, along with Basel III and Dodd-Frank banking regulations will impact real estate capital supply and demand this year,” says Brian Casey, SVP and group head in the local capital markets team.

“These increased capital requirements will drive lender pricing and structure decisions,” he adds. “Borrowers will need to adapt their capital stacks to get the most efficient execution.”

We're thrilled Walker & Dunlop has joined us as a founding partner of our Bisnow Beltway Bash, to be held on May 23 at 5:30pm at the Wynn's Intrigue Nightclub at ICSC Recon. We hope you'll join us, and be sure to check in with W&D’s finance experts at booth N3454Z in the North Hall. Register here!