Walker & Dunlop Arranges $109 Million Construction Financing for Brooklyn Multifamily Development
Walker & Dunlop, Inc. secured $109 million for the construction of a 247-unit multifamily development in Brooklyn. The project includes a mix of residential units and retail space with various amenities. The loan will cover development costs and existing debt repayment.
The arrangement of $109 million in construction financing for a multifamily development in Brooklyn by Walker & Dunlop signifies a robust commitment to urban residential expansion. Financing of this magnitude underscores the confidence in the Brooklyn real estate market , especially in the multifamily asset class. The interest-only construction loan indicates a strategic financial plan aimed at managing cash flow during the development phase, which is a common practice in real estate development to alleviate the financial burden before revenue generation begins.
From an investment perspective, the inclusion of a diverse unit mix and ample amenities could cater to a wide range of tenants, potentially leading to high occupancy rates and stable rental income post-completion. The strategic location, with close proximity to transit and shopping districts, enhances the property's appeal, potentially driving up its future value. However, the long-term success of this investment will rely on the execution of the development and the sustained demand for rental units in the area.
The involvement of Walker & Dunlop, a known entity in the capital markets space, in securing such a significant loan highlights the continued investor interest in the multifamily sector, particularly in high-demand urban areas like Brooklyn. The decision to invest in a Class-A multifamily development aligns with current market trends, where there is a shift towards high-quality residential living spaces with a range of amenities. This shift is a response to evolving consumer preferences, particularly among millennials and Gen Z who prioritize location and lifestyle amenities.
While this development is poised to capitalize on these trends, potential investors and stakeholders should monitor market saturation and demographic shifts, which could affect the property's performance. Moreover, the retail component adds a mixed-use dimension that could enhance the property's resilience to market changes, as it diversifies revenue streams beyond residential leasing.
The financing of the 1034-1042 Atlantic Avenue project reflects a broader economic trend towards urban densification and mixed-use developments. The economic impact of such a development is multifaceted, potentially stimulating local employment during the construction phase and contributing to the neighborhood's vibrancy post-completion. The project's alignment with urban planning objectives, such as affordable housing components and transit-oriented development, can be seen as a positive contribution to the city's infrastructure.
However, the project's economic benefits must be balanced against the risks of gentrification and displacement of existing residents. The long-term economic implications for the local community and the broader Brooklyn area will depend on the project's integration with the existing urban fabric and its ability to meet the housing needs of a diverse population.
03/18/2024 - 06:30 AM
BETHESDA, Md. --(BUSINESS WIRE)--
Walker & Dunlop, Inc. announced today that it structured $109,000,000 Brooklyn, New York .
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1034-1042 Atlantic Avenue in Crown Heights, Brooklyn . (Photo: Business Wire)
The Walker & Dunlop Capital Markets team, led by Keith Kurland , Aaron Appel , Jonathan Schwartz , Adam Schwartz , Jordan Casella and William Herring acted as exclusive advisors to EMP Capital Group. The team identified QuadReal Property Group as the lender to secure the five year, interest-only construction loan. Loan proceeds will be used to repay the existing debt and fund ongoing development costs.
"Meticulously designed with floorplans that optimize all available square footage, 1034-1042 Atlantic Avenue's two towers have been carefully crafted to pair a diverse, fair market and affordable residential unit mix with desirable project-level amenities," said Elie Pariente of EMP. "We are thrilled to have worked alongside the knowledgeable team at Walker & Dunlop and appreciate their strong relationships aided in a seamless financing process that will guide this project through successful completion."
The fully entitled and approved development includes a diverse mix of 45 studios, 11 studio alcoves, 95 one-bedroom, 44 one-bedroom and home offices, 49 two-bedroom, and three two-bedroom and home office units across approximately 161,000 rentable square feet alongside nearly 11,000 rentable square feet of above-grade retail. Amenities include a tenant lounge, business center, screening room, karaoke room, golf simulator, game room, multiple party rooms, kids' rooms, social lounges, and a nearly 2,000 square foot state-of-the-art fitness center.
"We are thrilled to once again work with EMP Capital Group as they move forward with construction on this market-leading project in a prime location of Prospect Heights ," said Keith Kurland, senior managing director and co-head of New York Capital Markets at Walker & Dunlop. "The project’s thoughtful unit mix and unique design will ensure its successful lease-up and strong future performance upon completion."
1034-1042 Atlantic Avenue will represent an exceptional development along one of Brooklyn's main thoroughfares, offering immediate transit accessibility and access to some of Brooklyn's central shopping districts in Fulton Street Mall, attracting over 100,000 shoppers a day.
In 2023, Walker & Dunlop’s Capital Markets group sourced capital for transactions totaling nearly $12 billion website .
About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States . Our ideas and capital create communities where people live, work, shop, and play. The diversity of our people, breadth of our brand and technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.
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Investors:
Phone 301.202.3207
investorrelations@walkeranddunlop.com
Media:
Phone 301.564.3291
info@walkeranddunlop.com
Source: Walker & Dunlop, Inc.
What is the total amount secured by Walker & Dunlop for the construction financing?
Walker & Dunlop secured $109 million for the development of 1034-1042 Atlantic Avenue.
Where is the location of the multifamily development financed by Walker & Dunlop?
The development is located on two conjoining parcels on Atlantic Avenue and Pacific Street in Brooklyn, New York.
Who acted as exclusive advisors to EMP Capital Group for this financing?
The Walker & Dunlop Capital Markets team, led by Keith Kurland, Aaron Appel, Jonathan Schwartz, Adam Schwartz, Jordan Casella, and William Herring, acted as exclusive advisors.
What type of loan was secured for the project?
The team secured a five-year, interest-only construction loan from QuadReal Property Group.
What amenities are included in the development at 1034-1042 Atlantic Avenue?
Amenities include a tenant lounge, business center, screening room, karaoke room, golf simulator, game room, multiple party rooms, kids' rooms, social lounges, and a state-of-the-art fitness center.
