Walker & Dunlop has secured an $85.6 million construction loan from Madison Realty Capital for a $132 million multifamily development in Richmond, Virginia’s Scott’s Addition district. The project, which will redevelop the former Greyhound Bus Station, will feature 386 residential units, more than 14,000 sq ft of retail space, and a total of 550,000 sq ft of buildable area.
The joint‑venture partnership brings together Walker & Dunlop, AIP, Pointsfive, and Bridge Investment Group. Walker & Dunlop will contribute equity—though the exact amount is not disclosed—while the construction financing covers the bulk of the project’s capital needs. Construction is slated to begin in the second quarter of 2026.
Scott’s Addition is a federally designated Qualified Opportunity Zone and a rapidly gentrifying urban market. By leveraging its capital‑markets expertise and technology platforms, Walker & Dunlop is expanding its footprint in a high‑growth area, positioning the company to capture rental demand and strengthen its portfolio of multifamily assets.
Walker & Dunlop’s recent financial performance provides context for the deal. In Q4 2025 the company reported a net loss of $13.9 million and adjusted EBITDA of $38.8 million, down 59% year‑over‑year, largely due to $66.2 million in impairment charges and losses from under‑performing assets. Earlier in 2025, Q1 net income fell to $2.8 million, while Q2 and Q3 net incomes rose to $34 million and $33.5 million, respectively, reflecting a rebound after the Q1 decline. Management highlighted a 161% increase in transaction volume over the year and a strong pipeline for 2026.
The financing arrangement demonstrates Walker & Dunlop’s continued ability to structure joint ventures and secure construction loans, reinforcing its strategy of leveraging GSE relationships and technology to drive transaction volume. The deal adds a significant asset to the company’s portfolio and signals confidence in Richmond’s market, potentially offsetting recent earnings volatility.
No specific market reaction to this financing announcement has been reported, though the company’s stock has experienced volatility following its earnings misses.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.