Walker & Dunlop Secures $47 Million FHA Loan for Market-to-Affordable Conversion of VA Multifamily Property
BETHESDA, Md., June 13, 2023--(BUSINESS WIRE)--Walker & Dunlop, Inc. announced today that it secured a $46.6 million loan for Park Shirlington, an existing 294-unit multifamily property in Arlington, Virginia.
Walker & Dunlop’s Federal Housing Administration (FHA) team, led by Chris Rumul, arranged the loan through the U.S Housing and Urban Development’s (HUD) 221(d)(4) Substantial Rehabilitation Affordable Low Income Housing Tax Credit (LIHTC) program on behalf of Standard Communities. Together with HUD, Virginia Housing, AEGON USA Realty Advisors, LLC (AEGON), Arlington County’s Affordable Housing Investment Fund (AHIF), and Walker & Dunlop, Standard Communities was able to transform a market rate asset into new affordable housing for the long term through at least 2053.
A market-to-affordable conversion, Park Shirlington was previously financed via Walker & Dunlop’s interim loan program as the conversion to long-term affordability process unfolded.
"The availability of affordable housing is an issue of national concern," said Chris Rumul, senior managing director of FHA Finance at Walker & Dunlop. "Park Shirlington is an excellent example of how the federal government, local municipalities, and private investors can collaborate to be part of the solution."
In conjunction with the FHA Financing, Park Shirlington was converted from market rate to affordable with 60% AMI rent restrictions through a LIHTC regulatory agreement that covers 100% of the units. The HUD 221(d)(4) program provided substantial rehabilitation funding of $34 million in renovation costs which will directly benefit all aspects of the property, including unit interiors, building systems, and envelope, and the expansion and renovation of amenity spaces including the construction of a new Community Center.
"Transitioning Park Shirlington from market rate to committed affordable housing was an ambitious but critical objective given the affordable housing landscape in Arlington and many other high opportunity locations," commented Scott Alter, co-founder, and principal at Standard Communities. "Standard Communities is proud to have successfully worked with so many other committed stakeholders to ensure that Park Shirlington provides nearly 300 high-quality, affordable housing units for decades to come."
Walker & Dunlop is working to achieve its five-year goal of $60 billion in cumulative affordable and workforce housing finance by the end of 2025. Well on their way to reaching this goal, the affordable team originated $20.4 billion financing over the past two years through HUD, Fannie Mae, Freddie Mac, and capital markets sources. To learn more about our capabilities and financing options, visit our website.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States. Our ideas and capital create communities where people live, work, shop, and play. The diversity of our people, breadth of our brand and technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.
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