Walker & Dunlop, Pretium Close $75.7M Affordable Housing Bridge Loan in Manhattan
Event summary
- Walker & Dunlop and Pretium closed a $75.7M bridge loan for a 174-unit affordable housing property in Manhattan's Chelsea submarket.
- The loan is structured as short-term interim financing ahead of an anticipated HUD 223(f) permanent refinance.
- The transaction is the first closed under Walker & Dunlop Affordable Bridge Capital, a joint venture with Pretium.
- The 13-story property, built in 1928 and rehabilitated in 1981, features 110 one-bedroom and 64 two-bedroom units.
- Pretium has loaned over $3B to homebuilders and developers since December 2024, enabling more than 13,000 housing units.
The big picture
This transaction highlights the growing need for flexible financing solutions in the affordable housing sector, where traditional capital sources are struggling to meet refinancing timelines. The joint venture between Walker & Dunlop and Pretium aims to fill this gap, demonstrating how specialized partnerships can address market inefficiencies. With Pretium's significant real estate debt investments and Walker & Dunlop's affordable housing expertise, the venture is positioned to play a key role in preserving affordable housing nationwide.
What we're watching
- Market Demand
- How sustained demand for affordable housing will impact the pace of similar bridge loan transactions.
- Regulatory Dynamics
- Whether HUD's 223(f) program can keep up with the refinancing needs of affordable housing properties.
- Execution Risk
- The pace at which Walker & Dunlop and Pretium can close additional bridge loans under their joint venture.
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