Tacoma Refinanced as Pacific Northwest Struggles with Affordable Housing Stock
- Sep 01, 2015
By Alex Girda, Associate Editor
As cities in the Pacific Northwest are striving to boost their affordable housing stock, Walker & Dunlop Inc. is increasing its activity in the sector. The company provided client Hamilton Zanze & Co. with a loan worth $27.9 million for the sponsor’s Lakeside Landing in Tacoma. The financing was structured as a 10-year fixed-rate loan with six years of interest only, followed by a 30-year amortization schedule and a 1.25x debt service coverage ratio.
Lakeside Landing is located at 1414 S. Mildred St. in Tacoma that consists of 450 one- and two-bedroom apartments. The property is situated in an area that features lakes and Mt. Rainier, in a submarket that is becoming increasingly popular for residential properties. The community’s 49 buildings are located on 33 acres. Residents at Lakeside Landing have access to an amenity package that includes a playground, fitness center, pool, barbecue area, clubhouse, basketball court and tennis court.
According to a press statement, the financing was structured with six years of interest-only payments in order to ensure the possibility of improvements and achieving rent appreciation. Walker & Dunlop Senior Vice President Craig Russell noted that given the company’s longtime relationship with Freddie Mac, “they were able to extend their pricing beyond the normal duration, enabling the client to obtain a customized financing structure suited for their needs.”