Bethesda, Md. and Woodland Hills, Calif. — Walker & Dunlop (NYSE: WD) has entered into a definitive agreement to acquire Alliant Capital Ltd., a privately held affordable housing asset management firm based in Woodland Hills. Under the terms of the purchase agreement, Walker & Dunlop will acquire Alliant and its affiliates, Alliant Strategic Investments and ADC Communities, at a total value of $696 million.
Alliant is the sixth-largest syndicator of low-income housing tax credits (LIHTC) in the United States and has participated in the development of over 100,000 affordable units serving over 400,000 families.
ADC Communities is the affordable housing development arm of Alliant, which has financed 29 developments and over 5,400 units in eight states since 2014. Alliant Strategic Investments focuses on non-LIHTC affordable housing preservation, workforce housing and opportunity zone investments.
The acquisition will bring Walker & Dunlop’s total affordable housing assets under management to $16 billion, with $14 billion of those assets under management belonging to Alliant. The move is expected to be accretive to Walker & Dunlop’s existing $112 billion servicing portfolio.
“Alliant is one of the largest and most respected tax credit syndicators and affordable housing developers in the country. The addition of their people, assets and capital formation capabilities immediately makes Walker & Dunlop a market leader in affordable housing,” says Willy Walker, chairman and CEO of Walker & Dunlop.
“With Fannie Mae, Freddie Mac and HUD all focused on affordable housing and more and more Americans seeking affordable rental housing, the combination of Alliant and Walker & Dunlop is a home run,” adds Walker.
Alliant founder and CEO Shawn Horwitz says the move will accelerate the firm’s growth as Walker & Dunlop has a sophisticated lending and sales platform.
“Walker & Dunlop’s people, brand and innovative technology will benefit our clients, partners and investors, and allow us to provide more affordable housing, something that is desperately needed in America,” says Horwitz.
Horwitz and all key members of Alliant’s senior management team will join Walker & Dunlop and continue in their leadership roles.
Walker & Dunlop is financing the acquisition of Alliant with $351 million of cash and the assumption of Alliant’s securitized debt facility, which had an outstanding balance of $155 million as of July 31 and carries a 4.75 percent interest rate. The financing will also include $90 million of Walker & Dunlop’s common stock and $100 million of participating interest in future cash flows over the next four years.
The transaction is expected to close during the fourth quarter, subject to certain regulatory approvals and consents of Alliant’s investor and lender partners. Beekman Advisors represented Alliant as a financial advisor in the transaction.
Walker & Dunlop’s stock price closed on Monday, Aug. 30 at $102.02 per share, up from $54.78 a year ago, an 86.2 percent increase.
— John Nelson