Commercial property

Walker & Dunlop Investment Partners Forms $500 Million Joint Venture

Mitchell Resnick, Senior Vice President and Group Head of Investment Management and Private Equity Platform, Walker & Dunlop. Image courtesy of Walker & Dunlop

Walker & Dunlop Investment Partners Inc., the alternative investment manager wholly owned by Walker & Dunlop, has formed a $500 million joint venture with Pacific life to make equity investments in industrial and multi-family assets across the United States. The joint venture was announced a day after the parent company Walker and Dunlop said it is consolidating its fund management, private equity, high yield and senior bridging loan groups into the investment management and private equity group.

Mitchell Resnick, a commercial real estate industry veteran who joined Walker & Dunlop in 2016 after leading Freddie Mac’s Multifamily Capital Markets department, was concurrently appointed to lead the new group and serve as chairman of WDIP. At Freddie Mac, Resnick oversaw the growth of GSE’s lending and securitization programs. Prior to joining Freddie Mac, he spent 15 years at Goldman Sachs on the mortgage negotiation desk.

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Walker & Dunlop officials said combining its fund management, proprietary capital, high yield and senior bridging lending groups into a single entity would allow the firm to more effectively help clients navigate changing market dynamics as alternative sources of capital become increasingly important to sponsors. The newly combined group will also enable the company to provide a broad and diverse range of equity and debt products for all property types. Last year, the combined groups invested nearly $200 million in equity and incurred $3.3 billion in debt in the commercial real estate market. Walker & Dunlop expects there to be synergies between the business areas that will fuel the future growth of the platform.

Sheri Thompson, executive vice president of affordable housing, investment management and owner capital, said in a prepared statement that Resnick’s established relationships and experience will be an invaluable addition to the combined teams. She said having an industry veteran and longtime Walker & Dunlop executive at the helm will enhance collaboration and cross-selling across the platform as the company makes match the various investment needs of its investors with the capital needs of CRE owners.

Resnick said in a prepared statement that he is excited to elevate Walker & Dunlop’s product offerings and continue to build a versatile, skilled and diverse financial services company, backed by a talented team of investment professionals. , a strong brand and the continuous development of innovative technologies.

Walker & Dunlop and its subsidiaries currently hold over $15 billion in assets under management, far exceeding its goal of reaching $10 billion in assets under management by 2025.

Pacific Life Joint Venture Details

As president of WDIP, Resnick noted that many CRE owners and operators seek attractive, value-added opportunities in industrial and multi-family sectors that offer the most stability among property types. He said they continue to see a steady stream of opportunities as owners and operators seek strategic capital to fill their capital reserves. Resnick said the partnership with Pacific Life will allow WDIP to continue to deploy capital into high-quality opportunities across the country.

The joint venture will focus on the robust middle market by investing between $15 million and $50 million in equity per deal alongside sponsors with a track record of successful value-added deals. WDIP expects the joint venture to invest in up to 30 assets, with a total value of $1.5 billion.

In September 2021, Walker & Dunlop also launched a joint venture with Ivanhoe Cambridge to make preferred stock investments in multi-family, student and prefab housing in major MSAs, particularly in the Sun Belt states. The first two equity investments of this joint venture were made in Texas and Tennessee and totaled nearly $10 million. It was a former 240-unit multifamily property in San Antonio, TX and a newly delivered 267-unit multifamily community in the Farragut submarket of Knoxville, Tenn.