Walker & Dunlop Arranges $5.8M Rehabilitation Loan for Affordable Community in Tennessee

by Jeff Shaw

COOKEVILLE, Tenn. — Walker & Dunlop Inc. has structured a $5.8 million loan through the United States Department of Housing and Urban Development (HUD) for Walnut Village, an affordable seniors housing community in Cookeville, approximately midway between Knoxville and Nashville.

LHP Capital LLC, a Knoxville-based firm specializing in development and management of affordable multifamily housing, is the lead developer of the property, which local housing authority Highlands Residential Services owns and operates.

Led by Rob Rotach, the Walker & Dunlop team arranged the 40-year, fixed-rate, fully amortizing financing for Highlands Residential Services. The project is also supported by an issuance of tax-exempt bonds and an allocation of 4 percent Low Income Housing Tax Credits (LIHTC) in partnership with the Tennessee Housing Development Agency.

Located a few blocks from Cookeville’s historic downtown, Walnut Village provides residents access to nearby local amenities, outdoor parks and grocers. The apartments cater to the elderly or disabled and are located within 17 one-story buildings and one two-story building. Each of the community’s 80 units are covered by a project-based Section 8 Housing Assistance Payments (HAP) Contract.

Walnut Village’s rehabilitation is scheduled for completion in early 2020 and will include accessibility improvements, energy efficiency upgrades, new kitchens, new baths and new flooring.

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