HUD 221(d)(4) is a U.S. federal mortgage insurance program that backs loans for constructing or substantially renovating apartment buildings and other multifamily housing, making long-term, non-recourse financing easier to obtain. For investors, it matters because the insurance reduces lender risk and often yields lower interest rates and longer loan terms, similar to having a government co-signer that can make large real‑estate projects more bankable and stable over time.
historic tax creditsfinancial
Historic tax credits are government incentives that cut the tax bill for projects that restore or preserve officially recognized historic buildings, acting like a sizable coupon that reduces upfront costs. Investors care because these credits improve a project's cash flow and return on investment by offsetting taxes or being sold to others, but they also come with compliance rules and timing that can affect financing and long‑term risk.
capital stackfinancial
The capital stack is the ordered list of sources of money a company or project uses, showing who gets paid first and who takes more risk — think of it like layers in a cake where the bottom slices are safest and the top slices are most exposed. Investors use it to judge potential return and risk: positions lower in the stack (like senior lenders) get steadier, smaller returns but higher protection, while higher positions (like common equity) can earn more if things go well but can lose value first.
class atechnical
Class A denotes a specific group of a company’s shares that carry a particular set of rights—most commonly different voting power or dividend priority compared with other share classes. Think of it like different seats on a bus where some seats let you steer and others only ride: knowing whether a share is Class A tells investors how much influence they have over company decisions and how returns might be distributed, which affects control and value.
A government-backed program that speeds approval and insurance of mortgages for apartment buildings and other multi-unit rental properties, shortening the time lenders need to underwrite and insure loans. It matters to investors because faster, more predictable financing reduces the time and uncertainty to close deals, lowers holding and transaction costs, and can make projects more attractive to lenders and buyers—like getting a fast-pass through a normally slow approval line.
leanregulatory
Lean describes an approach that minimizes waste, keeps costs and staffing low, and focuses resources on the most productive activities; for a company this means streamlined processes, tight spending controls, and avoiding unnecessary complexity. Investors care because a lean operation can protect cash flow, boost profit margins, and make a business more resilient in downturns — like a smaller, well-packed vehicle using less fuel to travel farther on the same tank.
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BETHESDA, Md.--(BUSINESS WIRE)--
Walker & Dunlop, Inc. announced today that it has arranged $130 million in financing for the redevelopment of a historic former Veterans Affairs (VA) hospital campus into a 493-unit Class A mixed-use community in Denver, Colorado. The financing, executed through the U.S. Department of Housing and Urban Development (HUD) 221(d)(4) loan program, represents the largest 221(d)(4) construction loan in the company’s history.
Photo Credit: GM Development
Chris Rumul, Jason Silva, Cole Parker, and Mike Valucci of Walker & Dunlop FHA Finance arranged the transaction on behalf of their client, GM Development. The project incorporates historic tax credits as a key component of the capital stack, enabling the adaptive reuse of the long-vacant property.
“Executing the largest HUD 221(d)(4) loan in Walker & Dunlop’s history is a significant milestone for our platform,” said Ken Buchanan, EVP and head of FHA Finance at Walker & Dunlop. “We’re proud to partner with GM Development, The City of Denver, and HUD to transform this historic asset, leveraging the program and historic tax credits to deliver high-quality housing while preserving an important piece of Denver’s history.”
Located at the northwest corner of East 9th Avenue and Clermont Street, the 8.22-acre former VA hospital campus will be redeveloped into a Class A mixed-use community at 1055 North Clermont Street. The project will deliver 493 rental units, primarily market-rate, with approximately 8% designated as income-restricted at 60% AMI, within a restored historic 10-story building and an eight-level parking garage. It will also include more than 50,000 square feet of retail and medical office space, including 43,612 square feet on the first floor and garden level, with 12,594 square feet of frontage along East 9th Avenue opening into a central atrium.
“We’re excited to transform this historic site into a vibrant mixed-use community that will help revitalize the surrounding neighborhood and activate a long-underutilized property,” said Sam Edelson, principal at GM Development. “By preserving and repositioning this landmark asset, we’re creating a place that blends history with modern living. We’re grateful to Walker & Dunlop and HUD for their partnership in bringing this vision to life.”
Situated in Denver’s Hale neighborhood, the property is adjacent to the growing 9+CO master-planned district and directly east of Rose Medical Center. The site benefits from strong connectivity to major thoroughfares, including East Colfax Avenue, and is approximately three miles from downtown Denver and 23 miles from Denver International Airport.
Walker & Dunlop is a leading HUD lender, ranked No. 5 based on MAP (Multifamily Accelerated Processing) and LEAN volume in 2025. Since its inception, the firm’s FHA/HUD platform has closed $45 billion across more than 2,000 transactions and continues to deliver consistent results, with a 99% approval rate since 2021. To learn more about our capabilities and financing solutions, visit our 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 and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.
