Each of the build-for-rent (BFR) neighborhoods feature contiguous, newly built single-family rental homes that are competitively priced. Each home is approximately 1,400 square feet, boasts three bedrooms and two bathrooms, and features fully maintained lawns and landscaping, a two-car garage, private fenced backyards, and open floorplans. Built between 1996 and 2021, the homes are in very high demand, with all 123 currently 100% occupied.
Stuart Wernick, SVP and Managing Director, and Drew Garrison, Director, led the Walker & Dunlop team in arranging the refinance for the sponsor, a regional custom home builder, a vertically integrated construction, development, and property management company. Utilizing their broad network of capital providers, the team partnered with a regional bank, which proved to be the most attractive lender for their client. The resulting financing was a non-recourse structured solution with a fixed rate in the low fours for a term of 30 years with flexible prepayment options.
Mr. Wernick stated, “As one of the most popular and fastest-growing asset classes, this portfolio garnered significant interest with the capital markets. The sponsor’s team also added value, with demonstrated success in the industry and a significant amount of combined construction, development, and operational experience.”
Appealing to families and young professionals alike, the portfolio is located in Tyler, an attractive economic hub within the East Texas region. Tyler’s economy has performed well, with more than double the U.S. average for employment growth in recent months. The metro economy is heavily concentrated in education and health services, as well as the trade, transportation, and utilities super-sectors. The area’s two largest employers are East Texas Medical Center and Christus Trinity Mother Frances, which employ approximately 3,400 each.
Walker & Dunlop’s BFR & SFR Practice Group is comprised of 12 experts strategically positioned across the business to finance and sell these specialty communities. Our national team provides expert guidance on property sales, debt origination, and the structuring of equity to generate optimal returns and strategic relationships for our clients. The team is active with over fifty groups in the space, which range from institutional clients, homebuilders, multifamily developers, and individual investors. With an active pipeline of over $1.9 billion of transaction volume, the team has extensive experience executing on lending, capital brokerage, or investment sales opportunities. For more information on our Build-for-Rent practice group or to connect with an expert, visit our website.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is the largest provider of capital to the multifamily industry in the United States and the fourth largest lender on all commercial real estate including industrial, office, retail, and hospitality. Walker & Dunlop enables real estate owners and operators to bring their visions of communities — where Americans live, work, shop and play — to life. The power of our people, premier brand, and industry-leading technology make us more insightful and valuable to our clients, providing an unmatched experience every step of the way. With over 1,000 employees across every major U.S. market, Walker & Dunlop has consistently been named one of Fortune’s Great Places to Work® and is committed to making the commercial real estate industry more inclusive and diverse while creating meaningful social, environmental, and economic change in our communities.