Walker & Dunlop, Pretium Launch $250M Affordable Housing Bridge Fund

BETHESDA, MD & NEW YORK, NY – January 07, 2026 – Commercial real estate finance leader Walker & Dunlop and specialized investment firm Pretium have announced a $250 million strategic joint venture aimed at confronting a persistent bottleneck in the development of affordable housing. The new entity, Walker & Dunlop Affordable Bridge Capital, will provide flexible, short-term bridge loans to developers of affordable multifamily properties, filling a critical financing void that often stalls or kills essential housing projects.

The venture is designed to originate first-mortgage bridge loans for properties being acquired, refinanced, or stabilized before they can secure long-term, permanent financing from government-backed programs. This initiative represents a significant private-sector intervention in a market grappling with a severe shortage of quality, affordable homes across the United States.

The Anatomy of a Financing Gap

The affordable housing crisis in the U.S. is not just a matter of supply but also of complex financing. Developers dedicated to creating or preserving housing for low- and moderate-income families face a unique set of obstacles. While long-term funding is often available through government initiatives like the Low-Income Housing Tax Credit (LIHTC) program, Section 8 contracts, or HUD-insured loans, there is a perilous journey to get there.

This journey requires significant upfront capital for acquisition and rehabilitation, but the path to securing permanent government-backed financing is notoriously slow and laden with administrative hurdles. This creates a temporal “gap” where projects are most vulnerable. Market-rate developers can often secure conventional financing more quickly, putting affordable housing developers at a competitive disadvantage when bidding for properties. According to the National Low Income Housing Coalition, there are only 36 affordable and available rental homes for every 100 extremely low-income renter households, a statistic that highlights the immense pressure on the existing supply.

Bridge financing is the tool designed to span this gap. It provides developers with the immediate capital needed to purchase and begin work on a property, giving them the runway—typically 6 to 36 months—to navigate the complexities of securing permanent subsidies and loans. Without this interim solution, many viable projects are unable to move forward, exacerbating the national housing shortage.

A Strategic Alliance for Impact

The Walker & Dunlop Affordable Bridge Capital venture is built on a foundation of complementary strengths. Walker & Dunlop brings a deep, institutional knowledge of the affordable housing sector. The firm's dedicated platform already offers a suite of services, including debt and LIHTC equity financing, investment sales, and advisory services, giving it a holistic view of the project lifecycle.

“This joint venture combines our deep affordable housing expertise with Pretium’s capital strength and highly experienced multifamily team, giving clients the ability to act quickly in competitive markets,” said Sheri Thompson, executive vice president and Head of Affordable Housing at Walker & Dunlop. “It is a powerful new tool that offers flexible, interest-only bridge financing with loan sizes ranging from $10-75 million and terms between 6-36 months. It is an impact-driven platform that will help clients accomplish their mission.”

On the other side of the partnership, Pretium contributes substantial capital and a formidable track record in U.S. residential real estate. With approximately $60 billion in assets under management and a presence in nearly 90 markets, Pretium’s platform offers scale and sophisticated experience in structuring real estate financing solutions. The firm’s involvement signals a strategic move to deploy its resources toward an area of pressing social and economic need.

“We designed this joint venture to help address the shortage of quality, affordable housing in communities across America,” stated Jonathan Pruzan, Co-President of Pretium. “We are proud to partner with Walker & Dunlop to deploy much-needed capital to multifamily owners and developers, leveraging the scale of Pretium’s platform and our expertise in creating innovative real estate financing solutions.”

Unlocking Permanent Government Programs

The ultimate goal of this new bridge fund is not to exist in isolation but to serve as a crucial conduit to more stable, long-term financing. The joint venture is explicitly structured to prepare properties for takeout financing through government agencies and programs, effectively de-risking projects in their early stages.

For developers pursuing LIHTC, the nation’s primary engine for creating and preserving affordable rental housing, this bridge financing is invaluable. It allows them to acquire a property and begin necessary renovations while navigating the competitive tax credit allocation process. Once credits are awarded and syndicated, the proceeds are used to pay off the bridge loan, and the project moves onto a permanent, more stable financial footing.

Similarly, for projects involving Section 8 rental assistance contracts or tax-exempt bonds, the bridge loans provide the necessary liquidity to meet acquisition deadlines and complete any required upgrades to qualify for these programs. By offering an interest-only structure, the loans reduce the carrying cost for developers during this critical pre-stabilization period, improving project economics and increasing the likelihood of success.

Karen Kulvin, managing director and portfolio manager for Real Estate Debt at Pretium, added, “We are excited to combine our platform capabilities alongside Walker & Dunlop to deliver powerful financing solutions for affordable multifamily developers. We look forward to working together to bring this product to market.”

A Growing Market for Mission-Driven Capital

While Walker & Dunlop and Pretium are now major players, they enter a field where other specialized lenders and community development financial institutions (CDFIs) have long worked to address financing gaps. Firms like Rose Community Capital and non-profits such as the Washington Housing Initiative have paved the way by providing patient, flexible capital. However, the sheer scale of the housing crisis demands a larger pool of resources.

The entry of a $250 million fund from two industry heavyweights significantly expands the capital available for these types of projects. It provides developers with another, more institutional option and validates the bridge loan model as a critical component of the affordable housing ecosystem. This infusion of capital is expected to not only accelerate the pace of development but also attract other institutional investors to the sector, potentially creating a ripple effect that benefits communities nationwide. For developers on the front lines of the housing crisis, this infusion of flexible capital represents a powerful new resource in their mission to build and preserve affordable homes for American families.