D.C. developer lands 'green' loan for multifamily projects
Walker & Dunlop Inc. has originated $183 million in loans for a pair of Washington, D.C., LEED-certified multifamily communities – Park Chelsea and 2M.
The company arranged the transactions through Fannie Mae’s Green certification execution and the U.S. Department of Housing and Urban Development’s refinance program, reports Multi-Housing News.
WC Smith, which took the loan, is among the Mid-Atlantic’s leading developers of affordable housing, while Walker & Dunlop is one of the most active lenders using environmental rewards programs to obtain pricing breaks and structural enhancements for its clients owning and developing properties that meet specified sustainability requirements.
Park Chelsea is the first of three communities in the Capitol Riverfront of Washington, D.C., that together will be referred to as The Collective. As a LEED silver building, Park Chelsea qualified for Green Building Certification financing. That enabled Walker & Dunlop to structure discounted pricing, maximize loan proceeds and achieve an expedited closing timetable.
Park Chelsea, 75 percent leased at closing, has had such success since opening that it captured Delta Associates’ 2016 best lease-up pace for a D.C. rental community.
LEED Gold certified, 2M is a mixed-income apartment property in NoMa, a premier locale near legendary Union Station. About 93 percent of 2M’s units are reserved for low-income residents, including Section 8 voucher holders. The refinance loan will offer substantial annual debt service savings for WC Smith, just two years after closing the original HUD development loan.
At closing, 2M was 99 percent leased, evidence of the enclave’s robust demand for affordable rental alternatives. Upscale amenities at 2M include a rooftop pool, grilling area, an indoor fitness facility, a basketball court and 24-hour concierge.
“These two transactions and the success these properties have seen illustrate renters’ strong desire for affordable rental housing that is also environmentally conscious,” officials said.