Finance V Michigan

Walker & Dunlop closes $48 million loan for castle-themed apartments

Walker & Dunlop closes $48 million loan for castle-themed apartments,ph01

Walker & Dunlop provided a $48.3 million bridge loan for The Grand Castle Apartments, a newly developed Class-A multifamily complex located in Grandville, Michigan, a suburb of Grand Rapids. Developed by Roger Lucas, a principal of Land & Co., The Grand Castle Apartments comprises 522 units and is modeled after the famed Neuschwanstein Castle in southern Germany.

Walker & Dunlop Vice President Benjy Krosin partnered with Kari Zapolski of Inner Circle Holdings, a longtime preferred correspondent located in Rockford, Michigan, to originate the transaction. The debt was structured by Walker & Dunlop’s interim loan program, which provides short-term, nonrecourse loans backed by multifamily properties that are being repositioned or that do not yet qualify for permanent financing.

The 24-month, floating rate loan includes full term interest-only payments and enables the borrower to pay off the existing construction debt with ample time to complete the remaining lease up. Additionally, the flexible prepayment structure allows for seamless conversion to permanent upon stabilization.

Totaling more than 1 million square feet, the development offers a variety of living spaces, including studios, one-, two- and three-bedroom units, as well as multi-level penthouse apartments. Community amenities include lake access, a swimming pool, fitness center, business center, electronic parcel station, outdoor grilling area, walking trails, a resident lounge and library, a dog park and washing station, and covered parking for most units.