Whispering Meadows is located in the Fiesta District in Mesa (Photo courtesy of IPA)
Walker & Dunlop structures $28.6M rehab loan for Mesa apartment
Walker & Dunlop, Inc. (NYSE: WD) announced today it structured a $28,550,000 Fannie Mae Moderate Rehab loan for Whispering Meadows, a garden-style apartment complex in Mesa, Arizona, utilizing the Fannie Mae Green Rewards program.
The Fannie Mae Green Rewards program provides improved financing options and enhanced pricing to borrowers who are focused on energy reduction and water cost renovations such as water efficiency equipment, solar panels, and improvements needed to achieve Green Building Certification.
Institutional Property Advisors recently sold Whispering Meadows to its current owners for $34.35 million.
The program offers property owners both additional loan proceeds and a lower all-in interest rate. The borrower planned to complete plumbing upgrades, reducing the overall water expense by 20 percent, which qualified the property for Fannie Mae’s Green Rewards program.
The loan was structured as a 10-year term with seven-years of yield maintenance and three-years of interest-only followed by a 30-year amortization schedule. The final loan to value was 83 percent of the contracted purchase price and 79.26 percent of the total cost of the purchase price plus proposed renovations.
Alex Inman, senior vice president, led the Walker & Dunlop team. Mr. Inman stated, “Given Walker & Dunlop’s knowledge and expertise of the Fannie Mae Green Rewards program, we were able to navigate the process flawlessly and provide a unique financing opportunity to the borrower, which ultimately closed ahead of schedule.”
Built in 1979, Whispering Meadows consists of 45, one and two-story garden-style residential buildings, featuring 432-units, and offers one-, two-, and three-bedroom floor plans. Property amenities include a clubhouse with kitchen, business center and game room, resident lounge, two outdoor pools and one heated spa, picnic areas, basketball court, a dog park, children’s playground, and a fitness center.