Insider Scoop: Walker & Dunlop $380 Student Housing Refi Shakes Market!

Walker & Dunlop (W&D) has successfully secured a substantial credit facility worth $380 million to refinance a portfolio of 11 off-campus student housing properties. Spearheaded by Scion Student Communities (SSC), a joint venture led by The Scion Group, this deal was made possible through a Fannie Mae-backed credit facility facilitated by W&D’s Colin Coleman, Brendon Coleman, and Will Baker. Completed within an impressive timeframe of 35 days, this transaction marks the fourth Fannie Mae credit facility for the sponsorship.

As per the US student housing news, the refinancing initiative not only allows SSC to eliminate all floating-rate exposure but also addresses the refinancing of several maturing loans. 

“It will offer maximum flexibility and stability as the venture navigates the current markets and charts their exciting next steps,” said Colin Coleman, Managing Director of Multifamily Finance at W&D.

The student housing properties involved in this refinancing are predominantly situated near campuses in the Southern United States, including notable locations like The Republic at Lubbock, Redpoint San Marcos, and Redpoint Denton. Additionally, properties such as The Radian near the University of Pennsylvania and the portfolio are undergoing refinancing.

With The Scion Group boasting the title of the largest owner/operator of off-campus student housing communities globally, managing a portfolio exceeding 80,000 beds marks a significant milestone, highlights the US student housing news. 

Addressing the move, Clayton Merritt, Senior Vice President of Capital and Investments at The Scion Group, said, “Walker & Dunlop was instrumental in originating financing for this venture’s four large portfolio acquisitions spanning back to 2016.” He further added, “Over the past nine years, W&D has consistently added value to our portfolio through proactive and strategic capital stack management. This complex transaction, which spanned two credit facilities and over $2.3 billion of gross asset value, achieved multiple strategic goals for the partnership.”

In 2023, W&D claimed the top spot as the leading lender within the Fannie Mae DUS network, surpassing its competitors by originating a higher number of student housing loans. As of September 30, 2023, W&D had originated almost $18 billion in debt financing volume, with over $14 billion dedicated to multifamily properties alone. 

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