Grand Castle receives $48.3M loan
Loan allows borrower to pay off existing construction debt with time to complete remaining lease-up.
The Grand Castle apartment complex in Grandville secured a multimillion-dollar loan.
Walker & Dunlop Inc. in Bethesda, Maryland, revealed it has provided a $48.3 million bridge loan for the Class A multifamily complex by Roger Lucas, principal at Land & Co.
“We are very pleased that the Walker & Dunlop team was able to make our vision a reality,” Lucas said. “The flexible terms and attention to detail provided by the bridge-lending platform will be instrumental to the success of this new landmark in the Grand Rapids region.”
The Grand Castle Apartments, which broke ground in July 2016, according to previous Business Journal reports, comprises 522 units and is modeled after Neuschwanstein Castle in southern Germany. Leasing opened in November 2018, and the complex currently is 72% occupied according to Land & Co., which also is managing the complex.
Totaling 15 stories and more than 1 million square feet, Grand Castle offers a wide variety of living spaces, including studios, one-, two- and three-bedroom units, as well as a handful of multilevel penthouse apartments.
Community amenities include lake access, a swimming pool, fitness center, business center, electronic parcel station, outdoor grilling area, walking trails, a resident lounge and library, a dog park and washing station, and covered parking for most units.
It’s location just off I-196 gives residents convenient access to downtown Grand Rapids.
Benjy Krosin, vice president of Walker & Dunlop, partnered with Kari Zapolski, owner of Inner Circle Holdings in Rockford, to originate the transaction. The debt was structured by Walker & Dunlop’s interim loan program, which provides short-term, nonrecourse loans backed by multifamily properties that are being repositioned or that do not yet qualify for permanent financing.
The 24-month, floating-rate loan includes full-term, interest-only payments and enables the borrower to pay off the existing construction debt with ample time to complete the remaining lease-up. Additionally, the flexible prepayment structure allows for seamless conversion to permanent upon stabilization, according to Walker & Dunlop.