Walker & Dunlop Arranges $74.5M Construction Loan for Stamford Waterfront Office-to-Condo Conversion

Walker & Dunlop has arranged a $74.5 million floating-rate, interest-only construction loan for the acquisition and redevelopment of The Caspian, a planned 63-unit luxury condominium project at 68–70 Seaview Ave. in Stamford, Connecticut. The financing was arranged for sponsors Sun Homes and Hudson Bay Capital and provided by an affiliate of Apollo Global Management.

Deal Details and Property Overview

The Caspian occupies a seven-story, approximately 241,000-square-foot waterfront office building that will be converted into 63 luxury condominium residences. Planned unit types include one-, two- and three-bedroom homes as well as townhome residences. Amenities are expected to include a grand lobby, indoor and outdoor amenity areas, private rooftop terraces, a 57-slip marina and structured parking.

The $74.5 million loan represents approximately $1.18 million per planned residence based on the 63 units described in the project. The loan's floating-rate, interest-only structure is consistent with construction financing that preserves capital during the redevelopment phase while the project works toward completion and unit sales.

Walker & Dunlop's Institutional Advisory Team

Walker & Dunlop's Institutional Advisory team arranged the financing. The team on the transaction included Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Sean Reimer, Dustin Stolly, Jordan Casella and Stanley Cayre.

Office-to-Residential Conversion in a Selective Lending Environment

The transaction converts a large office asset into high-end residential use rather than delivering a conventional ground-up apartment project. That strategy is notable in Stamford, where office-market weakness and residential demand have encouraged adaptive-reuse proposals. The existing building's approximately 241,000-square-foot shell provides a substantial structure for conversion, though the redevelopment scope is expected to involve significant work on residential plumbing and mechanical systems, life-safety upgrades, unit layouts, vertical transportation, common areas, parking and waterfront infrastructure.

The condominium structure differentiates The Caspian from rental multifamily projects. A condominium exit allows sponsors to realize proceeds through individual unit sales rather than relying on stabilized rental cash flow, though it also introduces absorption, pricing and construction-completion risk. The floating-rate structure increases exposure to benchmark-rate movements and extension risk if sales or construction timelines extend.

Stamford and Coastal Connecticut Market Context

Available coastal Connecticut multifamily data as of early 2026 pointed to an inventory of approximately 4,007 units, a 2.5% vacancy rate and market rent of roughly $1,984 per unit, with no units under construction in the cited submarket at that time. Broader Connecticut multifamily data for the second quarter of 2026 showed an average cap rate of 5.2% and a multifamily vacancy rate of 6.2%, with Class A and B cap rates compressing by five basis points during the quarter. Stamford and Norwalk multifamily cap rates were reported in a range of approximately 4.5% to 6% in 2026, reflecting premium pricing for coastal Fairfield County assets.

Those figures apply primarily to stabilized multifamily investments and are not a direct valuation measure for a condominium conversion project. Limited new supply and low vacancy in the coastal Connecticut submarket can, however, support demand for distinctive residential product such as a waterfront condominium with marina access.

The financing reflects conditions in which lenders remain selective but continue to fund well-located residential projects with differentiated characteristics. The Caspian's waterfront location, marina component and luxury positioning place it in a segment of the Stamford market with limited direct competition from conventional rental supply.

Sources

Walker & Dunlop — $74.5M Acquisition and Redevelopment Announcement