CRE V Michigan

Walker & Dunlop provides financing for student housing in Michigan

Walker & Dunlop, LLC recently provided financing for two student housing developments, the Cottages of Baton Rouge located in Baton Rouge, La., and the Lodges of East Lansing located in East Lansing, Mich.

Walker & Dunlop, LLC recently provided financing for two student housing developments, the Cottages of Baton Rouge located in Baton Rouge, La., and the Lodges of East Lansing located in East Lansing, Mich.

The acquisition loans for both properties were structured with a 10-year term with one-year interest only and a 30-year amortization using Freddie Mac’s Early Rate Lock Process under its Capital Markets Execution. Both loans were underwritten to a 75 percent loan-to-value with a 1.35x debt-service coverage.

The borrower, Kayne Anderson Real Estate Advisors, used Freddie Mac’s ERL process, which allowed it to lock the interest rate before Phase II had been completed for the upcoming school year in Baton Rouge, and prior to the students entering their units for the fall term in East Lansing. Both properties are managed by The Capstone Companies.