Three-comma deal

Walker & Dunlop has closed the largest financing in company history, a $1.9 billion portfolio of Freddie Mac loans to Greystar Growth and Income Fund, LP in connection with its acquisition of Monogram Residential Trust.

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A Monogram-now-Greystar property in Costa Mesa, Calif., Blue Sol features one, two and three-bedroom luxury apartments.

Willy Walker, Walker & Dunlop Chairman and CEO, commented, “It is a true honor to have been selected by Greystar to finance the largest transaction in its illustrious history. The Walker & Dunlop team, along with our partners at Freddie Mac, executed flawlessly on this large, complex transaction.

“There are only a few multifamily lenders in the country with the scale and expertise with the GSEs to execute on a transaction of this nature, and it is a testament to Walker & Dunlop’s growth, and the incredible team we have, that we were able to execute on this financing so well.”

The financing includes 36 distinct loans on multifamily properties located in major metropolitan areas across the United States.

The portfolio is comprised of 62 percent floating rate loans and 38 percent fixed rate loans. The Walker & Dunlop financing team was led by Matt Wallach, Stephen West, and Craig West.

“We were thrilled to work so closely with the incredible team at Walker & Dunlop and Greystar to facilitate this significant acquisition,” said David Brickman, executive vice president & head of Freddie Mac Multifamily. “We pride ourselves on being the leading capital provider for large, complex deals, and this financing clearly demonstrates our ability to deliver innovative structures and certainty of execution to premiere multifamily operators.”

Walker & Dunlop was a top-five lender with each of the Agencies in 2016, including the third largest Freddie Mac Multifamily Approved Seller. During the first half of 2017, Walker & Dunlop originated $2.3 billion of Freddie Mac loans, a 33 percent increase over the same period last year.

Earlier this year, Monogram Residential Trust, an owner and developer of luxury apartment communities, entered into an agreement to be acquired by a newly formed perpetual life fund, Greystar Growth and Income Fund, LP, led by Greystar Real Estate Partners and its initial founding capital partners, affiliates of APG Asset Management N.V., GIC, and Ivanhoé Cambridge, in a transaction valued at $3 billion.

“We are excited to add Monogram’s high-quality assets in some of the best markets in the country as the seed portfolio for Greystar Growth and Income Fund, LP, our flagship core-plus perpetual life vehicle,” said Bob Faith, the Founder, Chairman and Chief Executive Officer of Greystar.

The transaction is not contingent on receipt of financing by Greystar. JPMorgan Chase Bank, N.A. has provided a commitment letter to Greystar Growth and Income Fund for $2.0 billion in debt financing for the transaction.

Morgan Stanley & Co. LLC is serving as exclusive financial advisor and Goodwin Procter LLP is serving as legal advisor to Monogram. J.P. Morgan Securities LLC is serving as exclusive financial advisor and Jones Day is serving as legal advisor to Greystar.

Source: REW