NEW YORK, NY – Blackstone Mortgage Trust and Walker & Dunlop announced that they have entered into a joint venture to originate, hold and finance multifamily bridge loans. Walker & Dunlop, one of the nation’s largest nonbank originators of Fannie Mae, Freddie Mac and U.S. Department of Housing and Urban Development loans, will contribute 15% of the venture’s equity capital and BXMT will contribute 85%.
The joint venture’s floating rate, first mortgage loan product targets assets prior to their eligibility for permanent agency financing. This comprises an addressable market estimated to be upwards of $20 billion.
Steve Plavin, BXMT’s Chief Executive Officer, said, “Walker & Dunlop’s market leading multifamily and agency loan footprint makes it an ideal partner for us as we seek to help borrowers bridge their financing until an agency take out. We are very excited about the increase in investment volume that the joint venture will provide for BXMT.”
Walker & Dunlop Chairman and CEO, Willy Walker, said, “The JV with BXMT will allow us to significantly expand our bridge lending business better serving our client base’s vast demand for capital and unlocking growth potential commensurate with the scale of our agency origination business.”
Blackstone is one of the world’s leading investment firms. Blackstone’s asset management businesses, with over $360 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis.
Walker & Dunlop is one of the largest commercial real estate services and finance companies in the United States providing financing and investment sales to owners of multifamily and commercial properties.