Walker & Dunlop Provides $82 Million Green Loan for Seniors Housing Community in San Diego
BETHESDA, MD–Walker & Dunlop, Inc. (NYSE: WD) (the “Company”) announced today that it structured an $82,077,000 loan for Paradise Village, located just outside of San Diego, in National City, CA. The transaction for the Class A, independent living, assisted living, and memory care community represents Fannie Mae’s first Green Rewards loan backed by a seniors housing property.
Based out of the Company’s Dallas, TX, office, Managing Director Jeff Ringwald and Senior Vice President Bill Jackson led the team. The 10-year loan provided a two-year period of interest-only payments and a 30-year amortization schedule for Generations Senior Living (the “Sponsor” or “Generations”), a long-standing, repeat Walker & Dunlop borrower. The financing replaced a previous construction loan and provided cash-out to enable the financing of an adjacent, newly developed memory care facility when stabilized.
Ringwald commented, “It was a pleasure working with Chip Gabriel and the Generations team on the first Green Rewards financing for a seniors housing property. We worked closely with the Fannie Mae team to leverage the Green Rewards program and deliver exceptional terms, which included the desired loan proceeds and a very low rate for the Sponsor.”
In addition to lower interest rates, the Green Rewards program provides up to five percent in additional loan proceeds and free energy and water audit reports to finance green improvements. As part of the Green Rewards program the Sponsor is in the process of installing a solar and battery pack system to enhance energy efficiency and yield substantial future utility savings at the property.
Generations’ Chip Gabriel stated, “As always, it was truly a pleasure working with Jeff, Bill, and the Walker & Dunlop team to refinance Paradise Village. Walker & Dunlop provided us the same great service they always do, and Jeff and Bill found several creative ways to achieve the best results for Generations and the residents at the community. Through their hard work we’ve secured financing at Paradise Village for the next ten years. We look forward to working with Walker & Dunlop again soon.”
Built in 2009, Paradise Village consists of seven four-story buildings and 394 units. Community amenities include a pool, clubhouse, performance stage, meeting and banquet rooms, a library, hobby shop, art studio, and several shops and services. The property also enjoys an ideal location that is adjacent to Paradise Valley Hospital and within walking distance to several restaurant, entertainment, and grocery options. The property was developed through a partnership between an affiliate entity of Generations Senior Living and a faith-based, non-profit hospital that has nearly 20 hospitals and 280 clinics under its management.