Walker & Dunlop, Inc. announced that it provided $45,200,000 in financing for two parcels of land in Boca Raton and Miami, Florida. Miami-based Eric McGlynn and Kevin O’Grady, both Managing Directors in the company’s capital markets group, arranged the nonrecourse loans, effectively lowering interest rates on each property’s existing land loan.
The first loan, totaling $33,000,000, was provided on behalf of Property Markets Group (PMG) for the parcel of land that will host the new Waldorf Astoria Hotel & Residences Miami located at 300 Biscayne Boulevard. The hospitality project is being developed by PMG, along with joint venture partners Greybrook Realty Partners and S2 Development. Once complete, the luxury hotel and condo tower will comprise 98 stories with a 140-key hotel and approximately 400 condo units. The project was designed by Sieger Suarez Architects as a stack of glass cubes.
The Walker & Dunlop team identified BridgeInvest as an ideal lender for the project, structuring the loan to allow for the finalization of approvals and the launch of condo sales. With its flexible terms, the interest-only, nonrecourse financing provides the developer the option to exit with limited prepayment penalties.
The second of the two refinancings totaled $12,200,000 for 130 acres in central Boca Raton that formerly played host to the Mizner Trail Golf Club, a public golf course. The property is owned by an affiliate of Compson Associates, which has entitled the land for a 255-unit residential development consisting of a mix of single-family and townhomes. As the property’s existing loan was nearing the end of its term, the Walker & Dunlop team secured new financing from New Gables Capital at a lower interest rate. The loan is full-term interest-only and provided the owner with an additional 12 months to complete predevelopment activities.
Said McGlynn, “Both loans were similar in that they were refinancing existing land loans that achieved a better cost of capital for the borrower. Also, both projects had a very significant amount of cash equity investment which gave the lenders comfort that the developers would see these projects through and ultimately repay the loans.”
Walker & Dunlop’s McGlynn and O’Grady have been active in structuring nonrecourse loans for all property types nationwide, including land, multifamily, and hospitality. The team also focuses on identifying providers of equity, structured debt, and portfolio financing for developers and value-add owners and operators. As a team, they have closed in excess of $16 billion of debt and equity transactions.