Walker & Dunlop Closes Biggest CRE HUD Deal Since 2005
Commercial real estate lender Walker & Dunlop reports it originated the largest Department of Housing and Urban Development (HUD) portfolio of commercial-backed securities since 2005. The loans, a total of $162.m, are financing a 16-property, 2,088-bed portfolio of skilled nursing facilities in Florida. "This opportunity was a complicated portfolio transaction," said senior vice president and group head of Federal Housing Administration Finance, Steve Ervin. "Not only did we need to balance the needs of the owners, but also the operator, our lender and HUD." Each loan in the portfolio was structured at a rate of 4.95%, with a 35-year term and a 35-year amortization. Loans were underwritten to an average of 81% loan-to-cost. The news is a rarity in the region. Keefe, Bruyette & Woods reported today that metropolitan statistical areas (MSAs) in Florida rank near the bottom of all commercial real estate indexes for the second quarter of 2010, including the retail sector and industrial sector. Walker & Dunlop was recently ranked the 19th largest commercial/multifamily servicer for the first half of 2010 by the Mortgage Bankers Association. Write to Christine Ricciardi.