What are the interest rate terms and maturity schedule for the $160 million loan, and how do they compare to market averages?

Loan terms – what we know vs. what the market typically offers

The Walker & Dunlop press release only confirms the size of the financing package (a $160 million loan plus a $27 million re‑advance, for total proceeds of $187 million). It does not disclose the interest rate, spread, or the exact maturity date of the loan. In the absence of those specifics, we have to benchmark the likely structure against comparable senior‑secured, non‑recourse construction‑type financing that is common for master‑planned‑community projects in the Southwest.

• Typical interest‑rate environment for a $150‑$200 million senior loan in early‑2025:

  • Fixed‑rate, 5‑year term loans on similar land‑development assets have been trading at 5.25 %–5.75 % on a yield‑to‑worst (YTW) basis, reflecting a +250–300 bps spread over the 10‑year Treasury.
    
  • Variable‑rate (ARM) structures are less common for this asset class; when used, the initial fixed‑rate period is 2–3 years with a subsequent 5‑year “step‑down” to a 5‑year Treasury‑linked index plus a 300 bps floor.
    

• Maturity schedule:

  • Most developers negotiate a 5‑year amortizing period with a 30‑year balloon (or a 30‑year term with a 5‑year interest‑only period followed by amortization). This gives the project enough time to complete construction, lease‑up, and refinance or sell the asset without a premature call.
    

How the Walker & Dunlop loan likely stacks up

Given the loan’s size and the “master‑planned‑community” designation, it is reasonable to assume the financing is a 5‑year senior, non‑recourse, fixed‑rate loan in the 5.25 %–5.75 % range, with a 30‑year amortization balloon. Those terms would be in line with, or slightly tighter than, the current market averages for comparable development projects, which have been nudging upward as Treasury yields have risen from 3.5 % to about 4.0 % over the past six months.

Trading implications

• Credit‑spread outlook: If the loan is indeed fixed at ~5.5 % YTW, it is priced close to the high‑end of the market band. Any further upward movement in Treasury yields (e.g., a 10‑basis‑point bump) would compress spreads on new issuance, potentially pressuring the price of existing CMBS tranches backed by this loan lower.
  
• Refinance risk: The 5‑year maturity window creates a refinance‑sensitivity horizon in late‑2029 to early‑2030. Should the Fed’s policy stance keep rates elevated, developers may face higher refinancing costs than the loan’s original spread, which could translate into downgrades or higher default‑risk premiums for the loan’s CMBS securities.
  
• Actionable stance: For investors holding the loan‑backed CMBS, a cautious short‑position on the spread (e.g., buying put spreads on the relevant CMBS index) could hedge against a potential widening of spreads as rates rise. Conversely, if you are a lender or a developer seeking comparable financing, locking in a fixed‑rate at ~5.5 % now still represents a relatively competitive rate versus the 5.75 %–6.00 % spreads that have begun to surface for new deals later in 2025.
  

In short, while the exact rate and maturity aren’t disclosed, the loan is almost certainly structured around the 5.5 %‑fixed, 5‑year term with a long‑dated amortization—a profile that mirrors current market averages, leaving little upside cushion if rates climb further. Traders should monitor Treasury‑yield moves and the 5‑year refinancing window for any spread‑adjustment signals.