BETHESDA, MD - Walker & Dunlop, Inc. announced today that it recently provided $19,847,000 under Freddie Mac's Capital Markets Execution Program to CAPREIT, Inc., for Arboretum Place and Silver Hill at the Arboretum, adjacent multifamily affordable properties located in Newport News, VA. Walker & Dunlop has provided over $81 million for affordable housing communities nationwide in the first three quarters of 2012 and continues to focus on the preservation of affordable options for tenants coast-to-coast.
Both properties are affordable, under Section 42 of the Low Income Housing Tax Credit (LIHTC) program. Arboretum Place contains 76 LIHTC units (41 percent) and Silver Hill at the Arboretum contains 123 units (80 percent) operating under the program. The program stipulates that the affordable units at both properties must be rented to households earning 60 percent or less of Area Median Income.
CAPREIT, Inc. President, Dick Kadish, commented, "The debt financing for these two beautiful, LIHTC properties was instrumental in making the properties work. For the investor, by generating an economic return we provide a stimulus for affordable housing communities to be built and maintained; for the resident, their apartment homes are upgraded, professionally managed and will be well-maintained. CAPREIT was very pleased with the hard work, dedication, and persistence exhibited by Dustin Swartz and the team from Walker & Dunlop in securing these loans for CAPREIT."
Both acquisition loans were structured with 10-year terms with 3-years interest only, followed by 30-year amortization periods. The financing for Arboretum Place was underwritten to a 79 percent loan-to-value with a 1.40x debt-service coverage ratio. The financing for Silver Hill at the Arboretum was underwritten to a 77 percent loan-to-value with a 1.30x debt-service coverage ratio.
Arboretum Place offers residents amenities such as a clubhouse, fitness center, lighted tennis court, car wash facility, playground and parking garages. Silver Hill at the Arboretum is an age-restricted (55+) property that features a social lounge, fitness center, library and video library, central laundry facilities on each floor, controlled-access and van transportation service to local retail and medical facilities.