Walker & Dunlop and Pretium have established a $250 million joint venture to provide key bridge financing to affordable housing developers.
Walker & Dunlop Affordable Bridge Capital will originate flexible, short-term first-mortgage bridge loans for properties that are being acquired, refinanced, or prepared for long-term government affordable housing programs, such as low-income housing tax credits, Section 8, or tax-exempt bonds.
“This joint venture combines our deep affordable housing expertise with Pretium’s capital strength and highly experienced multifamily team, giving clients the ability to act quickly in competitive markets,” said Sheri Thompson, executive vice president and head of affordable housing at Walker & Dunlop. “It is a powerful new tool that offers flexible, interest-only bridge financing with loan sizes ranging from $10 million to $75 million and terms between six and 36 months. It is an impact-driven platform that will help clients accomplish their mission.”
Officials said the move will support the expansion of affordable housing by providing in-demand bridge financing that provides projects with reliable, permanent takeout through agency and Department of Housing and Urban Development programs.
“We designed this joint venture to help address the shortage of quality, affordable housing in communities across America,” said Jonathan Pruzan, co-president of Pretium. “We are proud to partner with Walker & Dunlop to deploy much-needed capital to multifamily owners and developers, leveraging the scale of Pretium’s platform and our expertise in creating innovative real estate financing solutions.”
Walker & Dunlop (NYSE: WD) is one of the largest commercial restate finance and advisory firms in the United States and internationally.
Pretium is a specialized investment firm focused on U.S. residential real estate, residential credit, and corporate credit.