Walker & Dunlop has originated $1.72 billion in loan proceeds to refinance 12,955 predominantly workforce and affordable housing units in 52 assets across 10 states for Starwood Capital Group.
“This significant portfolio financing reflects Walker & Dunlop's ability to structure and execute large-scale financing solutions for the world's largest and most sophisticated institutional clients," said chairman and CEO Willy Walker. "Financings of this size and complexity require a coordinated and collaborative team of bankers and underwriters.
“We are grateful for the trust Starwood placed in our team to deliver this refinancing, positioning the Strata portfolio for sustained performance and continued long-term success,” Walker added, noting that the transaction was led by senior managing director Dustin Stolly and in collaboration with Freddie Mac.
According to reports, in 2021, Starwood acquired a multifamily portfolio from Strata Equity Group that included 62 communities across 10 states. The properties were primarily in the Southeast, including Georgia, North Carolina, and Tennessee.
Walker & Dunlop Capital Markets Institutional Advisory arranged the new refinancing on behalf of Starwood Capital’s Starwood Real Estate Income Trust. In addition to Stolly, Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Sean Reimer, Michael Stepniewski, and Michael Ianno originated the 10-year Freddie Mac loans.
“Starwood is proud to own and support workforce housing communities,” said Jonathan Pollack, president of Starwood Capital. “With a large majority of units in high-growth, high-migration markets, we believe the fundamentals are strong for the long term for our lenders and investors. We appreciate Walker & Dunlop's partnership in delivering this financing from Freddie Mac.”