Walker & Dunlop Originates $100 Million Revolving Credit Facility for Presidium

Bethesda, Maryland – January 11, 2018

Walker & Dunlop, Inc. (NYSE: WD) (the “Company”) announced today that it has structured a $100,000,000 Freddie Mac Revolving Credit Facility for Presidium Group, LLC (“Presidium” or the “Sponsor”), a valued, repeat client. The credit facility was initially secured by two properties, Solaris and The Violet, both located in Austin, Texas, and was structured with an additional $50 million in excess capacity for a potential of $150,000,000 in total financing.

Real Estate Finance Managing Director Alex Inman led the Walker & Dunlop team in arranging the financing. The five-year, flexible, non-recourse, secured line of credit was structured with a full term of interest-only payments. This type of financing allows the Sponsor to secure credit and pricing terms prior to identifying property assets to back the debt. The terms remain in place for the duration of the facility and a borrower can move assets in and out of the facility with no requirement to substitute assets.

“Structured products can pose many new challenges not found in conventional Agency products. Loan documents are different; the underwriting is different; even obtaining credit approval is different. Due to these complexities, many lenders don’t even consider this offering, but after careful analysis of the borrower’s investment strategy and long-term goals, it became increasingly evident that a Freddie Mac credit facility was going to be the most beneficial to the overall project,” added Mr. Inman.

The Sponsor has significant experience with distressed or underperforming apartment communities in strong-performing metropolitan areas. Presidium plans to coordinate with in-house and third-party architects to renovate the acquired assets. The goal is to reposition the assets as superior properties, distinguished from their respective local competition.

John Griggs, a representative for Presidium, commented, “Having closed many complex transactions with Alex Inman and his team at W&D, it was no surprise that their execution of the Freddie Mac credit facility was flawless. This was one of the largest transactions in our company’s history and having a trusted advisor working with us to close the deal on time and as quoted was essential.”

“We were excited to work with the talented teams at Walker & Dunlop and Presidium to structure a revolving credit facility that provides efficiency, flexibility, certainty of execution and a competitive interest rate,” said Lauren Garren, vice president of production at Freddie Mac Multifamily. “Our longstanding partnership with Walker & Dunlop – and the professionalism and responsiveness of Alex Inman and his team – allowed them to identify a great candidate for this facility and partner with us to create a structure best suited to meet Presidium’s needs. We were extremely happy to deliver on this execution, and we look forward continuing to expand our productive partnership with Walker & Dunlop and its borrowers in the months to come.”

Solaris is a 562-unit, garden-style apartment community located at the intersection of East Riverside Drive and Royal Crest Drive, just three miles southeast of the Austin central business district. The Violet is a 160-unit, garden-style apartment community near the intersection of E William Drive and Interstate 35, six miles south of downtown Austin.

Walker & Dunlop is a leader in the multifamily lending space, and ranked as the #3 Freddie Mac Multifamily Approved Seller/Servicer in 2016. The Company has also significantly increased its brokered loan originations; in the first three quarters of 2017, the Capital Markets team closed a record $5.2 billion in total brokered volume, up 23 percent from the full-year 2016 figure.

About Walker & Dunlop

Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate services and finance companies in the United States providing financing and investment sales to owners of multifamily and commercial properties. Walker & Dunlop, which is included in the S&P SmallCap 600 Index, has over 600 professionals in 28 offices across the nation with an unyielding commitment to client satisfaction.