What is the anticipated timeline for disbursement of the loan proceeds and the corresponding impact on project milestones?

Anticipated disbursement timeline

Walker & Dunlop’s press release indicates that the $160 million senior loan has already been arranged and that a $27 million re‑advance component brings total available proceeds to $187 million. In financing deals of this size, the primary draw‑down usually occurs within 5‑10 business days after the loan‑closing documents are executed, with the re‑advance being funded within 30‑45 days once the borrower meets the stipulated re‑advance conditions (e.g., completion of a defined portion of the development, submission of draw‑down certificates, or achievement of a pre‑set cash‑flow threshold). Assuming the borrower in Rancho Mirage is ready to close this week, market participants can expect the bulk of the capital to be in the developer’s bank account by the end of the month, and the re‑advance to be added by early to mid‑February.

Impact on project milestones and trading implications

The rapid infusion of $187 million will materially accelerate the master‑planned‑community’s construction schedule. With the primary loan available now, the developer can:

• Commence or expand the first‑phase infrastructure and utility work within the next 2‑3 weeks, shortening the “ground‑break” window that historically spans 60‑90 days after financing.
• Fast‑track the permitting and entitlement process for the second and third phases, as the lender’s re‑advance is typically tied to the completion of a predetermined percentage of hard‑cost spend (often 30‑40% of the total budget). Hitting that trigger by late February–early March will unlock the remaining $27 million, keeping the build‑out on a continuous, uninterrupted trajectory.
• Enable earlier sales and pre‑leases of the residential and commercial parcels, potentially boosting revenue forecasts for the next 12‑18 months and improving the developer’s cash‑flow outlook.

From a market perspective, the certainty of near‑term funding should tighten the price spread on Coachella‑Valley real‑estate REITs and related construction equities (e.g., UDR, AvalonBay, or regional builders) as investors price in a shortened time‑to‑revenue. Technical charts on these stocks often show a breakout above recent resistance levels when a large, project‑specific capital event is announced, so a short‑term long‑position or buy‑the‑dip strategy could be justified if the price retraces. Conversely, any delay in the re‑advance draw‑down (e.g., failure to meet the 30% spend threshold) could trigger a sell‑off and a re‑test of the support zone, so keep an eye on the developer’s construction‑progress updates and the lender’s draw‑down notices.