DELRAY BEACH, Fla. — Walker & Dunlop (NYSE: WD) has structured a $35.8 million Freddie Mac Immediate Delivery Tax Exempt Loan (TEL) for Smith & Henzy Advisory Group. The funds will be used to acquire and renovate Lake Delray Apartments, an affordable seniors housing community in Delray Beach, along Southeast Florida’s coast.
The community features 404 units, with assisted payment vouchers available for 193 of them and the rest reserved for seniors making 60 percent of the area median income. The Delray Housing Group manages the 14-acre property.
The $14.3 million in renovations will include complete replacement of kitchens, baths, windows, flooring and mechanical systems. Enhancements will be made to the amenity spaces as well, including renovations to the clubhouse and pool areas and the addition of a 1,200-square-foot gym, yoga room, library with computer rooms, barbeque area and outdoor LED lighting.
The loan was originally structured as HUD tax-exempt bonds, then later converted to Freddie Mac to acquire more flexible terms. The 17-year acquisition loan features two years of interest-only payments followed by a 35-year amortization schedule. The Palm Beach Housing Finance Authority provided the capital.
Frank Baldasare led the Walker & Dunlop origination team.