Bethesda and Montreal, September 14, 2021 – Walker & Dunlop, Inc. announced today that Walker & Dunlop Investment Partners, Inc. (WDIP), the company’s wholly owned alternative investment manager focused on middle-market commercial real estate investments, has partnered with Ivanhoé Cambridge, a Canadian real estate company with assets around the globe, to form a programmatic joint venture.
The joint venture will make preferred equity investments in multifamily, student housing, and manufactured housing properties throughout the United States. Its strategy will focus on identifying opportunities with stabilized properties, primarily in top 25 MSAs, with three-to-ten-year investment horizons. The venture aims to address the growing need for flexible gap financing at an attractive cost of capital amidst a low cap-rate, high-liquidity capital markets environment in the residential space.
“We’re excited to grow our relationship with Ivanhoé Cambridge through this program by capitalizing on the low cap rate, high-liquidity conditions driving demand for gap financing in the market today,” said Sam Isaacson, President of WDIP. “Our product is designed to help sponsors achieve their desired leverage targets with incremental proceeds at a much lower cost of capital than common equity. Ivanhoé Cambridge is a world-class institution, and we look forward to continuing our successful partnership together.
“This partnership with Walker & Dunlop is part of our broader strategy to further diversify our U.S. residential investment portfolio across markets and risk spectrum,” said Charles-Antoine Lussier, Senior Vice President, Investments, Residential and Hotels at Ivanhoé Cambridge. “Walker & Dunlop is a market leader for multifamily financing with a nationwide network. We have worked with them for many years and we are glad to expand our existing relationship to provide incremental proceeds and more flexibility across the capital structure.”