Walker & Dunlop, Inc. announced today that it arranged $40,521,019 in debt and equity for the construction loan of The Highlands, a 137-unit affordable development for seniors 62+, located in Hyattsville, Maryland.

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The Highlands. Photo Credit: CHI

PJ McDevitt, managing director of Walker & Dunlop Affordable Debt arranged the debt, and Macy Kisilinsky, senior managing director of Walker & Dunlop Affordable Equity, arranged the debt placement and equity syndication for the project. The terms were arranged on behalf of Community Housing Initiative, Inc. (CHI), who is partnering with First Baptist Church of Highland Park (FBCHP), to build this senior affordable housing project.

The Highlands will be financed with an unfunded forward Freddie Mac TEL, including a taxable tail, serviced by Walker & Dunlop. The permanent loan is structured as a 30-month forward commitment with a 15-year term and 40-year amortization. Walker & Dunlop also syndicated a $12,282,048 4% LIHTC equity investment with United Bank, with acquisition and construction financed through short-term tax-exempt bonds and a bridge loan from United Bank. Additional subordinate financing will be provided by Prince George’s County Housing Investment Trust Fund (HITF) and the Maryland Department of Housing and Community Development.

“This transaction highlights the flexibility of the Freddie Mac TEL product, allowing us to pair a traditional construction loan with long-term permanent financing and incorporate LIHTC equity to close the funding gap and optimize the capital stack under affordable housing constraints,” said McDevitt, managing director at Walker & Dunlop. “We are proud to deliver creative financing solutions that meet our clients’ needs and help bring much-needed housing to the community.”

The project will be developed on the existing FBCHP campus, which has been subdivided to create a separate tax parcel. It will feature one- and two-bedroom apartments, all of which will be income-restricted. Five units will be reserved for households at 50% of AMI, while the remaining 132 units will be restricted at 60% of AMI.

“We are pleased to help provide seniors in the DMV region with safe, affordable, and comfortable housing,” said Joe Byrne, vice president at CHI. “By keeping rents affordable, the property is expected to maintain long-term occupancy, minimize turnover, and provide a stable, welcoming community for its residents.”

The Highlands is located seven miles east of downtown Washington, D.C., with convenient access to Route 704, Route 214, and Interstate 495, all within two miles. Retail shopping is available just one mile to the northeast, and Reagan Washington National Airport is less than 15 miles to the southwest. Planned community amenities include a dog park, community garden, picnic area, salon, secure building access, and a fitness center.

Walker & Dunlop’s Affordable Housing platform brings together a dedicated group of affordable specialists who provide our clients with solutions to achieve their affordable housing objectives. The team has the deep expertise and capability to provide debt and equity financing (LIHTC, conventional, and programmatic joint-venture), investment sales and advisory services, as well as opportunities to invest in the preservation and revitalization of affordable properties. To learn more about our capabilities and financing options, 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.

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