A new Class A multifamily apartment development coming to Celebration Pointe has closed on its financing, Walker & Dunlop, Inc. announced on June 29.  

The 239-unit development project belongs to Viking Companies, but Walker & Dunlop, a commercial real estate finance and advisory firm, arranged the $58.8 million in construction financing. 

Eighty-five percent of the project cost will be covered by a combination of mezzanine financing and a 65% non-recourse senior loan from a life insurance company, according to Walker & Dunlop. 

“This financing was closed during a time of uncertainty in the overall capital markets and limited options for construction debt,” senior director of Capital Markets Jeremy Pino said in a press release. “We were able to deliver an impressive non-recourse solution for 85% of the capital stack, attesting to the strength of the sponsor and the project.” 

Life insurance companies have been expanding their product offerings in the last nine months, according to Walker & Dunlop. As commercial banks have made their lending standards stricter, life insurance companies saw a space to fill in the market. Walker & Dunlop saw that as a financing opportunity. 

“We are extremely happy to get this project financed with the assistance of Walker & Dunlop,” said Svein Dyrkolbotn, principal owner of Viking Companies. “Celebration Pointe is a live, work, and play community, so providing 239 residential units is a vital component to our continued success.” 

Viking Companies already has three completed market-rate housing developments at its overall Celebration Pointe project, in addition to retail and entertainment opportunities. 

Viking created Celebration Pointe as a live, work, play community for “the growing and affluent suburban neighborhoods” in West Gainesville.