Walker & Dunlop Finances Large Affordable Housing Portfolio

BETHESDA, Md., March 17, 2017

Walker & Dunlop Managing Director Andrew Gnazzo led the origination team, which structured the financing on behalf of a joint venture between Hudson Valley Property Group, LLC ("HVPG"), Red Stone Companies, LLC ("Red Stone"), and Wheelock Street Capital ("Wheelock").  The buyers acquired the portfolio with the intention of investing in the properties and upgrading the stock of affordable housing in Northern New Jersey.  Mr. Gnazzo stated, "We were honored to work on this financing with Red Stone, Wheelock, and the HVPG team, which is dedicated to the acquisition and effective management of affordable housing across the country.  Walker & Dunlop's scale and deep partnership with Fannie Mae was critical to the success of this transaction.  Underwriting project-based Section 8 rents in the current environment is not easy, and our team's extensive knowledge of affordable programs and structuring large pooled transactions allowed us to meet the joint venture's needs."

Brian A. Renzi, managing director for Red Stone, commented, "Red Stone Partners has always strived to develop creative solutions for our partners and clients specifically focused on investment in affordable housing communities.  In this case, we are especially excited to have leveraged our relationship with Walker & Dunlop and Fannie Mae to structure and participate in a flexible multiple-party debt and equity capital structure to maximize the opportunity on this acquisition and preservation of over 1,000 affordable housing units in the State of New Jersey."

"We are pleased to have partnered with Walker & Dunlop to finance this large affordable portfolio," said Hilary Provinse, Senior Vice President for Customer Engagement at Fannie Mae. "This transaction underscores our commitment to affordable rental housing and exemplifies our joint ability to creatively structure tailored financing solutions through Fannie Mae's Credit Facilities. It takes a strong partnership and a dedicated team to tackle these types of complex transactions."

The 1,009-unit, seven-property portfolio consists of six age-restricted properties, and one mixed seniors and multifamily property.  Each property has a 20-year HAP contract that will outlast the loan term.  In addition, the assets will be managed by Community Realty Management, which has over 40 years of experience in the local market, including a deep understanding of Section 8 housing.

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