Walker & Dunlop Inc. has structured a Fannie Mae Green Rewards loan for the acquisition of the Las Terrazas community in Dallas. The 230-unit, garden-style, workforce community was built in 1968. Walker & Dunlop’s multifamily finance group team members John Hinder and Andrew Tapley shepherded the transaction.
The borrower imposed a compressed timeline upon Walker & Dunlop, which responded by working closely with Fannie Mae to rapidly close the loan in slightly more than 30 days following the application date. Knowledge of Fannie Mae’s many financing options led to the realization the Green Rewards program was the transaction’s single best alternative. This enabled the team to obtain a favorable rate for the borrower.
“The biggest challenge was timing; the borrower had gone hard with their earnest money and was under a contractual obligation to meet the closing deadline,” Hinder told MHN. “They were counting on us for certainty of execution, and we were able to get the deal from application to closing in just over 30 days.”
Green Rewards offers lower pricing, up to 5 percent in additional loan proceeds and free energy and water audit reports to finance sustainability-related enhancements. Loan terms include a 12-year term with two years interest-only payments, followed by a 30-year amortization schedule.
Situated near the Central Expressway and Lyndon B. Johnson Freeway in the neighborhood known as Far North Dallas, Las Terrazas is a 20-minute drive to or from downtown Dallas. Las Terrazas residents have quick and easy access to restaurants, outdoor parks, good public schools and supermarkets.
As the half-century anniversary of its construction approached, Las Terrazas underwent a $1.3 million renovation program in 2015. At 95 percent occupancy, the apartment community now exceeds the market’s average occupancy levels.
Las Terrazas features studios as well as one- and two-bedroom floor plans. Each apartment includes patios or balconies, walk-in closets, air conditioning and ceiling fans. Utility costs are included in monthly rents.
A pet-friendly community, the property features such amenities as a pool, clubhouse, lighted tennis courts, playground and picnic area, exercise room and controlled access. The community also offers freeway access and a bilingual staff.
“We have a great relationship with the lender, Fannie Mae,” Hinder said. “In fact, we were their number one multifamily DUS lender for 2017. So we were able to leverage that relationship as well as our efficient and diligent underwriting and closing groups to deliver what the borrower needed.”