Ivanhoé Cambridge and Walker & Dunlop to Double Multifamily JV to US$500 Million

Ivanhoé Cambridge and Walker and Dunlop Investment Partners issued a press release stating they will increase their multifamily preferred equity partnership to US$500 million:

Walker & Dunlop Investment Partners (WDIP) announced today that it targets to double the size of its programmatic joint venture with Ivanhoé Cambridge, the global real estate portfolio of CDPQ, to US$500 million. The partnership, initially formed in 2021, intends to make preferred equity investments in residential asset classes across the United States.

“We’re excited to expand our relationship with Ivanhoé Cambridge and provide a much-needed capital solution in the current lending environment. Over the last two years we have refined a reliable preferred equity structure and efficient underwriting process that allows us to provide certainty of execution,” said Mitch Resnick, president of WDIP. “Our product is designed to help sponsors achieve their desired leverage targets on acquisitions and refinancings while generating compelling risk adjusted cash-on-cash and total return for our programmatic joint venture.”. Ivanhoé Cambridge is a world-class institution focused on long-term partnerships, and we look forward to continuing our successful partnership together.”

The joint venture will continue to make preferred equity investments in multifamily, student housing, and manufactured housing properties throughout the United States, focusing on cash-flowing assets, primarily in top 25 MSAs, with a range of three- to ten-year investment horizons. The venture will continue to address the growing need for preferred equity at an attractive cost of capital in a challenging debt capital market environment.

“Our partnership with WDIP is part of our broader strategy to increase investments within the preferred equity space in line with our sectoral convictions, providing a much-needed capital solution at an attractive risk-adjusted return profile,” said Eric Desjardins, Senior Director, Investments, U.S. Residential at Ivanhoé Cambridge. “We have built a strong portfolio with WDIP, leveraging our collective expertise in multifamily financing and investment. Looking ahead, we see solid growth opportunities for the partnership and look forward to continuing to serve as a market leader in this space.”

About Walker & Dunlop Investment Partners

Walker & Dunlop Investment Partners (WDIP) is a real estate private equity firm which manages capital on behalf of endowments, foundations, pension plans, private funds, insurance companies, family offices and high net worth individuals. WDIP invests debt and equity capital in value-added, opportunistic, distressed, and special situation transactions through a series of private funds, joint ventures and separately managed accounts. As a wholly owned subsidiary of Walker & Dunlop, one of the largest commercial real estate finance companies in the United States, WDIP has unmatched access to proprietary resources and market intelligence. This partnership offers clients unique, real-time insights into market movements, valuation, pricing, and underwriting. For more information, visit www.wdinvestmentpartners.com.

About Ivanhoé Cambridge

Ivanhoé Cambridge is part of CDPQ, a global investment group, and works alongside strategic partners and market leading real estate funds. It holds interests in more than 1,500 buildings, primarily in the logistics, residential, office and retail sectors. As of December 31, 2023, Ivanhoé Cambridge held C$77 billion in real estate assets.

Ivanhoé Cambridge develops and invests in high-quality real estate properties, projects and companies around the world. It does so responsibly and is committed to creating living spaces that foster the well-being of people and communities, while reducing their environmental footprint.

For more information: cdpq.com / ivanhoecambridge.com.

About Walker & Dunlop

Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States. Our ideas and capital create communities where people live, work, shop, and play. The diversity of our people, breadth of our brand and technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.

This is another example of how Ivanhoé Cambridge which is now integrated into CDPQ is leveraging off its strong strategic partnerships to increase its multifamily footprint in the United States.

With a tight housing market and rates higher for longer, institutional investors are looking to increase their allocation to multifamily properties.

And Ivanhoé Cambridge chose a great partner in the space.

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The firm celebrating its 85th anniversary and it specializes in many sectors and even has a monthly podcast:
 
 
This type of expertise is why smart investors will partner up with them on joint venture deals and why double the size of its programmatic joint venture with WDIP.
 
In real estate, you need to be in the right sectors, in the right locations with the right partners. 
 
And those strategic partnerships are really the key to a successful program over the long run.

There's a reason why Ivanhoé Cambridge was recently named global real estate investor of the year in the 2024 IPE Real Estate Awards for institutional investors, they know what they're doing and have the right partners to execute on their strategy.

In related new, Ivanhoé Cambridge and Urbz Capital are looking to sell their Dutch logistics portfolio but that deal hasn't been confirmed yet (read more here).

Below, Walker & Dunlop CEO Willy Walker joins 'The Exchange to discuss commercial real estate defaults, opportunities in a higher interest rate environment, and more (from eight months ago).

And the Quebec region does not need a 3rd link, according to CDPQ Infra.

“From a mobility point of view, there is no advantage in making an inter-bank road link,” says Charles Emond, CEO of the Caisse de dépôt et placement du Québec (CDPQ), in an interview with Zone économique.

Tramway, rapid bus service (SRB), improvement of the bus network: CDPQ Infra has submitted a mobility plan for the Quebec region which spans 15 years and which would cost $15.48 billion. This sum excludes urban developments along the route of a tramway and increases linked to inflation.

The plan entitled Integrated Express Transport Circuit (CITÉ) proposed by CDPQ Infra totals 95 kilometers of new corridors dedicated to public transport. Ultimately, 40,000 people would use this network daily, according to the subsidiary of the Caisse de dépôt et placement du Québec (CPDQ).

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