Walker & Dunlop, Inc. announced today that it arranged bridge financing in the amount of $51,884,493 for The Rise Central, a newly built, 230-unit apartment project in downtown Beaverton, Oregon.
The Rise Central is located in a burgeoning business district less than ten miles from downtown Portland, Oregon. Featuring excellent walkability and proximity to the Central MAX light-rail station, the property has unparalleled access to nearby amenities and major employers including Nike’s World Headquarters and Intel’s Hillsboro campus. Additionally, the nearby Beaverton Town Square and Cedar Hills Crossing retail centers provide lifestyle amenities within walking distance.
The Walker & Dunlop team was led by Managing Director Eric McGlynn, who has extensive experience in structuring nonrecourse bridge loans and construction loans nationwide for apartments and other property types, including build-for-rent single-family projects. To complete the transaction, McGlynn worked closely with Ryan Welch and Brian Cornell of JCR Capital, an alternative investment manager and wholly owned affiliate of Walker & Dunlop, based in Denver, Colorado. The floating rate loan includes a two-year initial term plus a one-year extension option and will provide the owners with sufficient time to complete leasing the property, which was 82 percent leased at close. The loan was bifurcated into a senior loan from JCR Capital and a mezzanine loan provided by a third-party partner.
Said Mr. McGlynn, “It was a pleasure working with the JCR team to complete this complex financing for one of our largest clients, Rescore. During the pandemic, the bridge lending market has become quite fragmented. After marketing the transaction to several lenders, we found JCR to have the most competitive combination of loan proceeds and pricing. They reacted very quickly and were flexible in structuring the transaction.”
The Rise Central consists of two buildings with five and six stories respectively, and contains a mix of studio, one-, and two-bedroom units averaging 754 square feet. Community amenities include a rooftop terrace, 3,000 square-foot fitness center, a penthouse lounge, bike storage, and garage parking with electric vehicle charging stations. Units feature nine-foot ceilings, premium fixtures and finishes, oversized windows, and in-unit washers and dryers. Select homes also feature private decks. The ground floor of the property includes approximately 5,800 square feet of retail, which is primarily leased to a retail tenant and restaurant.
The project is owned by Rescore Property Corp and was developed in partnership with local developer Rembold Companies. Rescore is a private REIT managed by Encore Capital Management, manager of three fund vehicles with over $3B AUM and whose principals are Art Falcone and Tony Avila. Encore, based in Boca Raton, Florida, has 20,000 residential units under ownership and/or development.
Walker & Dunlop is a top-ranked multifamily lender; the firm was the largest Fannie Mae DUS® multifamily lender and the 3rd largest Freddie Mac Optigo® multifamily lender by volume in 2019. For information about Walker & Dunlop’s view on the apartment market, including expert perspectives on markets, leadership, and the road ahead, visit our new Driven by Insight information center.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD), headquartered in Bethesda, Maryland, is one of the largest commercial real estate finance companies in the United States. The company provides a comprehensive range of capital solutions for all commercial real estate asset classes, as well as investment sales brokerage services to owners of multifamily properties. Walker & Dunlop is included on the S&P SmallCap 600 Index and was ranked as one of FORTUNE Magazine’s Fastest Growing Companies in 2014, 2017, and 2018. Walker & Dunlop’s 900+ professionals in 40 offices across the nation have an unyielding commitment to client satisfaction.
About JCR Capital
JCR Capital is an alternative investment manager that provides capital solutions to middle market and institutional commercial real estate sponsors. JCR invests on behalf of insurance companies, public pension funds, endowments, foundations and family offices. JCR was founded in 2006 and has approximately $1.2 billion of AUM.