WALNUT CREEK, CA - Walker & Dunlop announced that it arranged construction financing in the amount of $59,572,196 for the development of the Rise Walnut Creek apartments. Located in Walnut Creek, California, the project benefits from its proximity to San Francisco, one of the nation's most active multifamily markets with consistently above-average employment rates, sustained rent growth, and high occupancy. The project also enjoys a strategic location at the center of Walnut Creek's downtown commercial and retail district, which serves as a business and entertainment hub for neighboring towns.
Capital Markets Managing Directors Kevin O'Grady and Eric McGlynn led the Walker & Dunlop team, which arranged the financing on behalf of the developer, Florida-based Rescore Property Corp., a private REIT founded by Arthur Falcone, Tony Avila, and Bill Powers, and their local partner, Align Real Estate. Drawing from their broad network of capital providers, O'Grady and McGlynn identified Barings LLC as the developer's ideal partner for the senior financing. The nonrecourse loan represented 80 percent of the total project cost.
The Rise Walnut Creek is the seventh construction loan that the Walker & Dunlop team has sourced for Rescore's 'Rise' product line, which features contemporary design and innovative amenities. Once complete, the six-story building will include 10,577 square-feet of retail space, luxury amenities, and a residential lobby with controlled access to the units. Averaging 754 square feet, 20 of the 97 apartment units are designated for short-term rentals. The project will also include two levels of dedicated basement parking.
Said McGlynn, "Rise Walnut Creek is a creative project that satisfied the city's desire for more short-term stay units, which are in very limited supply, as well as Rescore's desire to deliver luxury residential in the high barrier-to-entry, dynamic downtown Walnut Creek market."
Based in Miami, Florida, O'Grady and McGlynn have been active in structuring nonrecourse construction loans nationwide for apartments, condominiums, hotels and mixed-use properties. The team also focuses on identifying providers of equity, structured debt, and portfolio financing for developers and value-add owners and operators. As a team, they have closed over $16 billion in debt and equity transactions.