Good morning. I'm Kelsey Duffey, Senior Vice President of Investor Relations at Walker & Dunlop, and I would like to welcome you to Walker & Dunlop's 2022 Virtual Investor Day. Today's webcast is being recorded, and a replay will be available via webcast on the investor relations section of our website. This morning, we posted our presentation to the investor relations section of our website, www.walkerdunlop.com. These slides serve as a reference point for the material that will be covered this morning. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. If you have dialed into the call and would like to ask a question at that time, please press star nine on your phone.
If you are accessing the webcast on your computer, please click the Raise Hand icon on the bottom menu bar of the webcast screen. Please also note that we will reference the non-GAAP financial metric, adjusted EBITDA, during the course of this presentation. Please refer to the appendix of the presentation for a reconciliation of this non-GAAP financial metric. Investors are urged to carefully read the forward-looking statements language in our presentation. Statements made on this call, which are non-historical facts, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe our current expectations, and actual results may differ materially. Walker & Dunlop is under no obligation to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise, and we expressly disclaim any obligation to do so.
More detailed information about risk factors can be found in our annual and quarterly reports filed with the SEC. I will now turn the presentation over to Willy Walker.
Thank you, Kelsey, and good morning, everyone. It is a true pleasure to have you with us this morning for this Investor Day. I would thank all of you, given a time when I'm sure many of you are watching your Bloomberg terminals and seeing what's going on in the capital markets, which is quite distracting these days. To take the time and join us this morning, we greatly appreciate. I think we have a great lineup of speakers and people to present what's going on inside of Walker & Dunlop. I'm gonna start out with an overview of what we both are doing today, as well as reiterating our long-term strategic vision.
I'm gonna turn it over to a bunch of colleagues who will go in more detail into various component parts of our business, what they're seeing in those component parts, and how it all comes together. We will have some time for Q&A at the end of the presentation. I would like to thank Kelsey and Jenna for all the work they've put into helping us get ready for this morning. Let me start here. Walker & Dunlop's mission statement is to be the premier commercial real estate financial services firm in the United States. That mission statement, as we have added additional firms to W&D, we've been very consistent to. Gina, you wanna put up the first slide? Thanks.
I think this slide accurately shows that in pursuit of that mission, we go up against some pretty fantastic companies every single day. On the commercial banking side, we go head-to-head with Wells Fargo and JP Morgan every day. On the commercial real estate services side, we go head-to-head with CBRE and JLL every day. On the technology side, we go up against the likes of Rocket and CoStar every day. What we have done in putting together and assembling the various component parts to Walker & Dunlop is create a unique combination of, if you will, those three circles, the commercial banking side, the real estate services side, and the technology side.
I think it's very important to understand that we actually look at this, and as much as we have incredible respect for those competitors of Walker & Dunlop, we also think that from a competitive positioning standpoint, particularly given what's going on in the markets today, we sit in a very privileged position. This next slide shows Walker & Dunlop's ten-year growth. The reason I bring this up, it's not to focus too much on the past, but it's really to try and convey to investors that what you have in Walker & Dunlop is a company, a management team, and a strategy that has gone through many cycles. We have gone through many times when we were a much smaller company and Fannie Mae and Freddie Mac went into conservatorship.
We've gone through multiple changes in political administrations that may have had some impact on both, capital sources in Fannie, Freddie, and HUD, the overall capital markets, what's going on in interest rates, what's going on in growth, et cetera, et cetera. Over that period of time, over this past decade, as you can see, the growth of Walker & Dunlop has not been just astounding, but it's been very consistent. Look at that top line on revenue growth and going from $152 million of revenues up to $1.2 billion in revenues. If you look at EPS growing from $1.31 up to $8.15.
The EBITDA number, which you will hear us talk a lot about today, going from, you know, doing 10X there, from $32 million up to $310 million over that period of time. While obviously what's going on with rising interest rates and the overall macroeconomy has a big impact on us, on our clients, on the overall commercial real estate industry, what we have at Walker & Dunlop is a company that has a consistent track record of growth, an exceptional management team with people. Today, from a competitive positioning standpoint, I truly believe sits in a position that provides us with a lot of opportunity, given our relatively small size, and yet at the same time, large scale from a brand and market opportunity standpoint. If you go to the next slide, Gina.
I think that talking about that competitive positioning, I was reading some Brené Brown recently, and one of the quotes that came out of one of her books that I was reading was, "Vulnerability is the birthplace of innovation, creativity, and change." I don't think there's a company on the face of the planet today that isn't vulnerable to rising rates, vulnerable to what's happening in the macro economy. I also think that there are a lot of companies that have gotten big, have gotten arrogant, and don't understand how to deal with the changing landscape. Walker & Dunlop is a company from having been a very, very small company and grown dramatically over the last 10-15 years. We always did things because they were strategically important for us, but we also did them because we were vulnerable.
We were vulnerable to the likes of Wells Fargo. We were vulnerable to the likes of CBRE. Throughout that period of time, we have always maintained an extremely innovative, creative culture that has allowed us to change and adapt. As I sit here and look at the landscape that's going on today and what most of us are facing with inside of the corporate world, this is a company that has a core culture that has a little bit of that vulnerability built into us. While obviously we look at the data, as you will see during this presentation, we are at it every single day, working to meet our clients' needs and working to put up the results that we have told investors we will get to. Let's go to the next slide, Gina.
All of that has gone into these incredible growth numbers, which are basically the summary numbers of what I'd shown previously in that ten-year slide. What I think is important to convey is that while these numbers are incredible, what we're looking at right now is taking this company that is relatively small and being able to continue to gain market share. I think one of the biggest opportunities for us right now in the market is the fact that while we have grown dramatically, and while we were the largest provider of capital to the multifamily industry in the United States in 2020, we still only have 8% market share in multifamily lending and 2% market share in all commercial real estate lending. As a result of that, while we've gotten big, it is still a very fragmented market.
What is going on in the market, as we have seen many times in Walker & Dunlop's history, when markets displace, we move forward. Gina, you wanna run the next piece here? Jenna's gonna play a new video that we just saw at our all-company meeting, which talks about a new both internal and external marketing campaign that we're working on. Go ahead and play that, Gina .
Start turning dreams into realities. Start new traditions. Start new friendships. Lifelong partnerships. Start paying it forward. Start saying hi to your neighbors. A better world begins with you. Better communities start with us.
That's our new Community Starts Here campaign. I think it's. I was sitting with a bunch of my colleagues at lunch yesterday here in Houston, and we were talking about Community Starts Here, and somebody turned to me, they said, "I now have a purpose for what I do." Ever since I joined Walker & Dunlop, we've been really, really focused on what we do and how we do it and what the results of what we do are. What we haven't done is answer the question of why we do what we do. As much as I think W&D is an amazing company, and it has been for many, many years, really great companies have people who understand why they do what they do. This Community Starts Here campaign embodies everything that we do.
As we push further into affordable housing, at a time when there is such a dire need for affordable housing in the United States, people at Walker & Dunlop take pride in that. They take pride in us being part of the solution to the fact that many Americans in a high inflationary economy can't afford to live where they're living. It allows us to take pride in the solutions and the capital that we're providing to our clients, so they can go and build, create communities where people live, work, shop, and play. As you can see on this slide, this is a mural that we painted in our new corporate headquarters in Bethesda, Maryland. Everyone who walks into our corporate headquarters now sees that community does start here. I think this has broad implications for us.
It really, really makes a huge difference for people to understand that the capital that we put out every single day, the buildings that we sell every single day, the research that we write every single day, the technology we create every single day allows for communities across America to be built and for communities to be maintained. That is gonna underpin everything that goes on inside of W&D as well as outside. If we go to what we're seeing in the near-term outlook and then the longer-term outlook, I think it's important for everyone to understand that one of the hallmarks of W&D has been our five-year business planning process and establishing very bold and highly ambitious five-year business plans.
I will talk about that in a minute. I also want to talk about what we're doing in the short term, because I think that given where the markets are today, it's important for investors to understand that how does Walker & Dunlop deliver double-digit earnings growth in 2022, which all plays into our five-year vision of the Drive to 2025. To get double-digit earnings growth off of last year, we need to generate $80.97 of earnings this year. That would be 10% EPS growth over last year. As you saw on the slide we just put up, our compounded annual growth rate on EPS has been far in excess of that. Given what's happening in the markets, I thought it was important for investors to understand exactly what we are doing today to get there.
One of the things that we do, and one of the reasons why Walker & Dunlop, I think, is such an attractive company to invest in right now, is unlike those big competitor firms who basically are playing on a macro play, we are still only a company of 1,400 people. As we sit down and do weekly calls, monthly calls, quarterly business reviews on everything we do inside of Walker & Dunlop, we're sitting there and looking at various teams and saying to the Alliant team, "Okay, Alliant, we've got you down for $90 million-$100 million of revenue this year. Go get it. What do we need to go do that?
Well, we need to do two fundraisings this year of new tax credit syndication funds and go out and raise $500-$600 million of equity capital to put into affordable properties. The team knows it. The team's executing on it. What do we need to do on the small balance lending platform? Alison Williams, who you're gonna hear from in a little bit, Alison knows exactly what her team needs to go do. We're looking to do over $1 billion of SBL lending in 2022, up from just over $500 million last year. Alison and the team, and including the newly added GeoPhy team, which Tuen is gonna talk about in a moment, they know exactly what they need to do to grow that SBL platform to get to $1 billion of origination volume this year.
Just to give investors a sense of how we look at all this and how we manage all of these things, if you look at our core debt financing and property sales platforms, as we look out to the rest of the year, we know exactly what we need to do to get ourselves over that 10% EPS growth number and what each team needs to do. For example, just back of the envelope numbers, our 160-ish mortgage bankers and brokers need to go out, and each one of them needs to originate $283 million of loans between now and the end of the year. That's $31 million of loans every month. Our average loan size in 2021 was $24 million.
You sit there and you say to yourself, "Okay, every banker or broker at Walker & Dunlop needs to go out and do roughly 1.5 loans a month between now and the end of the year, and we get to what we need to do from a debt financing standpoint." The exact same thing on the property sales side. We currently have close to 70 property sales brokers. We know that each one of them needs to go out and sell $288 million of aggregate property value between now and the end of the year to be able to get us to our budget and get over our budget and get over double-digit EPS growth. That's $32 million of sales each month by each broker.
One of the things that I think is different about Walker & Dunlop is we know those numbers. We manage to those numbers. We have exceptional managers out there every day driving the team to get there. Given if you think about 8% of multifamily financing, 2% of total aggregate commercial real estate financing with a small team, with a big brand, we will focus on those issues, and we will deliver those issues for our clients and for our investors in 2022. Servicing portfolio is continuing to generate cash servicing fees, and we will continue to add to that over the rest of the year. As we think about all of that, do rate movements have an impact? Without a doubt. What are we seeing right now as it relates to the overall market? Lots of transaction volume.
We're seeing the 10-year settle in right now. Our trader went out to everybody on our platform this morning with a note saying, "10-year's down to 2.77. Call me if you need to trade." As we see some gapping out between what's happening on the equity markets, where both equity markets were selling and rates were going up, I think in the past couple days we've actually seen where people feel like the 10-year has been oversold, and it's starting to rally back down. Obviously in our business, where that 10-year is and what the aggregate cost of capital is to our clients is super important to the transaction volumes that we will put up.
I wanna go to the Drive to 2025 so that in the context of what we're managing to in the short term, investors keep in mind that at the end of the day, we're looking for long-term investment, long-term results, which has been a hallmark of W&D. As you can see on this slide, many of you know the Drive to 2025 and what we've been going towards. I would just say that there's absolutely no change to the Drive to 2025. One of the analysts who covers us, Steve DeLaney, in our Q4 earnings call said we were so ahead after only one year on the Drive to 2025, were we gonna, you know, change our goals?
Steve and I said to Steve, "Can you let us kind of just enjoy the fact that we're well ahead of pace on getting to these goals just for a little bit before we go and reset them?" Right now, in driving towards these numbers, we feel extremely confident in getting to these numbers. As you can see, what this will do is continue to grow Walker & Dunlop, make us a more diverse platform, grow our debt financing volumes to over $65 billion a year, our property sales volumes to over $25 billion a year. We've seen huge growth, as you've seen in our numbers for 2021 and for Q1 of 2022, as it relates to transaction volumes and as it relates to revenues.
No reason with the team we have on the field and the brand we've built that those numbers don't continue to track very well towards our long-term five-year growth objective in the Drive to 2025. You can see our goal to grow the investment banking and asset management business to 10 billion under assets under management. As we have said, by buying Alliant. We jumped over that goal, but we also reiterated in our Q1 call that we need to continue to raise commingled funds so that we can put that capital into the deal flow that our bankers and brokers are bringing to Walker & Dunlop across the country. On our environmental, social, and governance issues, we are still very focused on delivering on those.
From having put in extremely ambitious ESG and DE&I goals into our proxy statement, not this year, but last year, we've been executing on them. I will say one thing which is quite interesting. I said this to a client of ours yesterday here in Houston. We were talking about DE&I, and he's a graduate of Morehouse College, and we were just talking about our recruiting at Morehouse and other historically Black colleges and universities. I said to him, he made the comment that he knew that our proxy statement had these very ambitious goals in it.
I said to him, "You know, we hired over 200 people during the pandemic." I thought because we had these DE&I goals explicitly stated in our proxy statement, that we would execute on getting to those goals. A year later, what we did was we looked back, and we had not made the progress that we needed to have made on hiring minorities and women into Walker & Dunlop. We had a really good internal conversation about it. What we decided to do was to put our DE&I reporting into our monthly financial review.
Today, when we meet monthly to look at what our financial performance is, as much time as we spend on how revenue growth was, how EPS growth was, and what our return on equity was, we also have a full deck inside of the presentation on what we're doing from a hiring standpoint to track on a monthly basis how we are executing on getting to our DE&I objectives, which we have so clearly outlined. It is only with that kind of monthly management and day-to-day implementation of these issues that we will be able to create the company at Walker & Dunlop that we want to from a DE&I perspective. Here's the lineup of speakers. I am, as I said at the beginning, incredibly honored to have this group of W&D colleagues with me.
I'm gonna turn it over now to Ivy Zelman to talk about our investment banking and research operations. After Ivy, you can see there are a bunch of other speakers. At the end, after Greg talks about our finances, I'll come back on, and we can do some Q&A at that time. With that, thank you again everyone for joining us this morning. Ivy, I'll turn it over to you.
Great. Thank you so much, Willy, and good morning, everybody. I'm Ivy Zelman, CEO of Zelman & Associates. I am excited to be part of the Walker & Dunlop Investment Analyst Day. I have to admit it's a little weird to be sitting on this side of the screen 'cause I'm normally on this side of the screen where you guys are listening to management present, and this is my first time as an executive, as part of an entity at Walker & Dunlop presenting to you. In any case, I thought it'd be fun to give you a little bit of background. I've known Willy now for over a decade. We go back to not long after Walker & Dunlop went public, and Willy reached out consistently just to catch up and chat about the markets.
Fast-forward, in 2015, we actually invited Willy to join us at our housing summit, where he was a panelist on the multifamily panel that we do annually. As you can imagine, not only a dynamic speaker, but really added tremendous value and tremendous respect from the audience, and we continue to have our periodic updates. Fast-forward, we have a pandemic that hits the world, and Willy begins the infamous Walker Webcast, which really was genius at the time. He reached out and asked if I'd be willing to come on and be a guest. I was honored, and I said, "Absolutely." I joined the webcast in August of 2020, and admittedly, I was blown away.
I had no idea that Walker & Dunlop had the capabilities of their platform, the resources, the technology, the marketing, all aspects that, frankly, I had no idea existed at Walker & Dunlop. The mass distribution and reach that they have through this webcast was really powerful. I started thinking about, you know, here we are as an independent research boutique focused on really shelter, residential, predominantly single-family for sale, for rent, and all aspects, including real estate services, mortgage, building products, home improvement. Walker & Dunlop has dominance in multifamily and expertise in commercial real estate. Would there be opportunities to collaborate? In addition to that, as an independent research boutique, which, frankly, nearly 15 years, we had been exclusively selling research to institutional investors as well as private equity.
Strategically, we've been thinking for a while as a small firm, how do we expand our TAM? How do we think about expanding our addressable market? I reached out to Willy Walker, and one conversation led to another. As a result of collaborative discussions and strategy, we joined the Walker & Dunlop family and closed our transaction a little less than a year ago in July 2021, and we couldn't be more excited. Now I'd like to talk about really how does Zelman help Walker & Dunlop's legacy business. First, I would just say that, you know, not to be arrogant, but we believe that we provide very unique proprietary research that we can provide to the bankers and brokers at Walker & Dunlop. Right now, times have never been more uncertain.
The macro drop backdrop is really complex, and the Walker & Dunlop customers and everyone internally really values thoughtful perspective, especially where we can talk about how to navigate going forward in these turbulent times, what our expectations are. One proof point that really helps, I believe the Walker & Dunlop business is we're providing content within the investment sales team to utilize in their pitches that they can go out to their clients with a more interesting, differentiated perspective that can help them help their clients and add value and win mandates and ring the register on more transactions. We also continue to appear as Willy invites me back for the Walker Webcast to provide again to the existing customers, present to prospective customers, thought leadership from the market-driven proprietary research that we're doing.
Really, on the research side, I think we have a lot to offer, and we're excited about it. On investment banking, really, for Zelman's been doing investment banking as an independent entity, really starting since 2008, led by Tony McGill, who's done a tremendous job in really building a business predominantly in the single-family M&A, capital markets, real estate services, everything outside of, let's say, the commercial real estate market. With that said, I think that what we bring to Walker & Dunlop is a Rolodex of clients that, frankly, a lot of those clients may not be as familiar with Walker & Dunlop. Whether it be home builders that are merchant building and doing build for rent, single-family rental operators that we have relationships with.
We open the spectrum of this wide platform of potential customers for, in fact, the Walker & Dunlop overall opportunities. One proof point with Tony's relationships, recently we had a builder in the Midwest who builds communities and has been selling those communities to operators in whether build-for-rent, SFR. Tony was working with them and had a long-standing relationship. After strategically discussing, you know, how to move forward, he reached out and brought in the investment sales team. That enabled us to win a mandate to sell that portfolio, which just recently closed. It was really that collaborative initiative and more to come that shows you the cross-selling opportunities that we have with our existing customer base.
Just to wrap on investment banking, I think it's just a natural extension for us to hire someone that can lead the charge in the commercial real estate area, both multifamily commercial real estate, to do more investment banking, because frankly, that's where we don't have right now a talented professional. We will look internally, externally and find the perfect person to lead that charge and leverage all of the significant opportunities that we think exist for advisory and at the enterprise level. Shifting to how does W&D help Zelman's legacy business?
I would say that, you know, as a data geek, I got so excited when Walker & Dunlop acquired GeoPhy because you take our market-driven research with a massive amount of data that we have, 15 years of history of monthly surveys, quarterly surveys, and just triangulate and synthesizing information that we've gathered, and then marry that with the realm of data that GeoPhy has, and you bring those two together, and we can create some pretty unique product offering that longer term could provide a product that could be utilized at the local market level that we think could be very differentiated and unique and different than what's out there today.
We're really excited that would be utilized by other parts of the Walker & Dunlop family, so we can utilize it internally, Alliant, every area, and then we can also think about providing it to the existing customers and then maybe monetizing and selling it on Wall Street. That's something that we'll be really focused on. Admittedly, it might take some time longer term, but we are very excited about it. We have now access to a much wider customer base. That goes back to my original thoughts on TAM, where we have been, again, predominantly selling institutional to institutional investors. Now we can go out to all of the Walker & Dunlop customers and hopefully have a lot more research subscriptions as well as do a lot more investment banking.
Just thinking about next, how do we leverage the relationships that Zelman has, and how do you combine that with the deep relationships that Walker & Dunlop has? In sounding like an old dog, I've been in business now following housing about 30 years, and I've built a Rolodex, both as an independent research boutique and prior to that as a bulge bracket that I'm proud to say is in aggregate private companies that approach 1,000. I have relationships with C-suite executives that really trust us and rely upon us for our credible research to help them navigate how to move forward in uncertain times, in good times, bad times.
They trust that we're providing them as unbiased, and they rely upon us. Similarly, at Walker & Dunlop, Willy has an incredible Rolodex that they have built through the trust and confidence in the services that they continue to provide consistently. We bring those Rolodexes together and those brands, and I think it's very powerful. I think one of the proof points of that, earlier this year, one of my C-suite executives that I catch up with regularly that happens to be in the multifamily space, we were chatting about the markets and, you know, he said, "You know, I'm not that familiar with Walker & Dunlop. I think we've done a little bit of business with them, but I really don't know them that well." I said, "Well, let's change that.
Let's get together, and we can meet, and you can get to know Willy." In fact, we right away scheduled a meeting and got together in Denver, sat down with the C-suite management team, with Willy and myself. I'm proud to say that that really led to a successful mandate that the investment sales team won to sell a very large portfolio in excess of $625 million. That type of opportunity exists because of the trust of that relationship and appreciation for the Walker & Dunlop capabilities that, frankly, this C-suite executive really didn't know about. I think there's more to come from that.
Now as we move into the integration piece with Steve Theobald, who's now taking the role on as COO, his focus is gonna be really to help us figure out how to drive synergies, drive into what Willy talked about on the Drive to 2025, and really having the opportunities to really capitalize on all the things I just discussed. I'm excited, and I know there's a lot of work to do, but we have the right team and the right ingredients for success. I'm gonna turn it over to Alison Williams now to give her an opportunity to tell you what she's doing on lending for small business loans.
Great. Thank you, Ivy. Good morning. I'm Alison Williams, senior vice president and chief production officer of our small balance lending group at Walker & Dunlop. After seven years with our capital markets team, I stepped into my current role to oversee the growth of our small balance lending platform at the beginning of 2021. I made this transition because I was extremely excited about combining our client-centric perspective to a tech-enabled platform that had the potential to change the market. The small multifamily lending landscape remains deeply fragmented and difficult to navigate, with over 3,000 different lending sources. Small balance originations surged dramatically in 2021, increasing 50% year over year to over $85 billion, representing the highest annual growth rate in the sector since 2012.
The total multifamily market totaled $470 billion in 2021, and Walker & Dunlop had a 9% market share. However, that market share is primarily based on our strong large loan financing volume, as we did just $500 million of small balance lending. This means that there's an $85 billion portion of the multifamily market that we have barely tapped into, presenting a huge opportunity for us to grow market share in 2022 and beyond. While the small multifamily market is deeply fragmented, there is also no typical investor for small multifamily properties. Investors range from high net worth individuals interested in building a portfolio and creating generational wealth to large real estate firms with portfolios expanding from coast to coast.
Investors need resources and a true debt partner who can help them execute on their business and investment strategies, all while providing an efficient, transparent, and customized borrower experience. That's why Walker & Dunlop is augmenting our capabilities in this sector. We've hired diverse bankers and brokers with regional expertise to help our clients navigate financing complexities, all while providing automation and tech-driven processes to remove friction from the process. This framework promises borrowers certainty of execution and an overall smooth financing experience. Now let's dive into our Drive to 2025 goals. As Willy discussed, one of our key goals is to grow small balance originations to $5 billion by 2025. In 2021, we closed just over $500 million of small balance volume.
Year to date, we have over $500 million of volume either closed or under application, putting us on track to hit the volume level we did all of last year with just our year-to-date pipeline. We are on target to meet our goal of $1.3 billion by year-end. What are we doing today to increase our volumes into 2022 and to continue to grow them to $5 billion by 2025? Well, in November, we rolled out our new small balance digital platform, which is completely powered by machine learning. Using predictive algorithms and proprietary data, our digital platform generates property valuations and loan quotes in minutes, creating a much more efficient process for borrowers.
The portal also provides transparency to the borrower, allowing them to review every piece of the loan process in one place, including evaluating financing options, tailoring them to their specific project needs, and monitoring the loan process from start to finish. In addition, we have applied technology to the underwriting and closing processes and will be adding tech-enabled features through GeoPhy during 2022. Our goal is to cut processing time by 15% by the end of the year. In the beginning of the year, we made our largest technology investment ever with the acquisition of GeoPhy. GeoPhy's data science capabilities makes our bankers and brokers more efficient and insightful than our competition, and it will directly play into our growth of our small balance business over the next few years.
In the near term, we are most focused on using GeoPhy's technology to digitally source deal leads, essentially bringing inbound leads to our production team. Our longer-term goal is to have 50% of small balance volumes obtained through this technology. We will also be using the GeoPhy technology to provide distinguished tools and insight to our new small balance client base. A majority of small balance property owners are individual investors with limited resources who need a true partner to advise them through their investment strategies. This is where we can provide significant value to our customers by leveraging GeoPhy's data aggregation tools and access to extensive data on the U.S. multifamily market. Additionally, as we continue to scale our small balance lending towards $5 billion, we know that we won't be able to use agency capital for all of our originations.
We recently launched a partnership with a large third-party capital provider to originate and securitize small loans that can compete with the banks who are our largest competitor in this space. We recently closed our first two loans since the program's soft launch in March. This proprietary capital will allow us to be consistently in the market, providing capital with a holistic view rather than a one-size-fits-all credit approach. On average, Fannie and Freddie have roughly 15% market share of the small balance market, but the vast majority of the market is dominated by banks. We are confident that our people, brand, and technology put us at a competitive advantage to allow us to scale rapidly and grow our market share.
As Willy mentioned, our nation's housing shortage persists and single-family mortgage credit is continuing to tighten, making the small multifamily sector a critical source for affordable rental housing. Walker & Dunlop's small balance lending platform will allow us to play an integral role in financing communities and providing safe, affordable housing to families across the United States. The small multifamily market has strengthened over the last 12 months, with valuations up 15% year-over-year and cap rates remaining stable at an average of 5.2%, placing it on solid footing to face potential macroeconomic headwinds. As I've discussed today, the small multifamily sector is well-positioned for future growth, and it is ripe for disruption. By taking advantage of our technology-enabled positioning, we will dramatically grow our market share while transforming the customer experience.
As we have been investing in growth in the small balance space, we are also dramatically growing our appraisal service, Apprise. We have doubled the number of Apprise appraisals done for our small balance platform over the past year and should only increase the synergy over time. I will now turn it over to Meghan, who will discuss our growth plans for Apprise over the next few years. Thank you.
Meghan, you're on mute.
Sorry, all. Thanks, Alison. I am Meghan Czechowski, Senior Vice President, Head of Apprise by Walker & Dunlop. Apprise is Walker & Dunlop's tech-enabled valuation platform with a mission to produce clear, concise, and consistent appraisal reports in as little as 5 days. IBISWorld estimates the CRE appraisal revenue in the U.S. to be approximately $4.4 billion. Estimating multifamily at 45% of the transactions indicates multifamily appraisal revenue of approximately $2 billion. Appraisals are a risk mitigation tool in the U.S. capital markets and are a requirement for federally regulated lenders and beyond. Valuations are at the core of commercial real estate decision-making, whether it's for lending, acquisition, consulting, asset management, or tax purposes. Prior to joining Apprise, I spent 16 years at a global commercial real estate services firm and worked in research, debt and investment sales, and the valuation and advisory service lines.
Over the past decade, I have built and led a team of multifamily appraisers in the Midwest and was named National Multifamily Practice Lead, where I managed and developed new business for more than 100 appraisers on the platform. In communicating with each of them, and from my own experience as a production appraiser, I understood that the process for assembling an appraisal report was time-consuming and cumbersome, with many appraisers having a poor career experience, making it difficult to retain and recruit new talent into the industry. To develop a well-supported opinion of value, an appraiser needs to survey and confirm large amounts of physical and economic information about an asset type very quickly. The legacy templates available in the market, consisting of web-based database, Word and Excel, are as efficient as they can get and have not changed much in the past 15 years.
The legacy templates and process require significant entry-level support and antiquated manual data entry methods that lead to very little data aggregation, and the manual processing of rent rolls and operating statements lead to errors and inefficiencies in the process. These are areas where AI, machine learning, and digital innovation can be harnessed to ensure a faster and more consistent valuation process for both appraisal staff and our clients. Accelerating the appraisal process is particularly necessary in today's transaction markets, as over a recent four-year period, the number of multifamily transactions alone increased by nearly 75%, while the number of licensed commercial appraisers decreased by 10% over the same time period. This supply and demand issue highlights an opportunity for change to better serve clients' valuation needs.
Realizing that the valuation space was ripe for market disruption by leveraging data aggregation and technology to enhance the valuation and appraisal process, I joined and helped launch Apprise by Walker & Dunlop in January of 2020. Our proprietary web-based Apprise application, built by GeoPhy, alongside best-in-class multifamily appraisal experts, consists of over 2.5 million multifamily property records with public record information, rents, expense, and sale information from industry-standard resources directly integrated into the system. The Apprise database does not start from a blank slate, and as such, analysts and appraisal professionals are able to verify and spot-check all available resources instead of logging into multiple interfaces and performing manual data entry, cutting down the time to reconcile a property record or confirm rent and sale transactions.
Additionally, our web-based application consists of a report editor and appraisal workflow that is tied to the vast property record database, creating a streamlined process of comp selection, analyzing risks, and concluding to an opinion of value. This means every single data point in an appraisal is warehoused and can be aggregated for future trending and machine learning use. The continued use of the Apprise application delivers richer data, deeper insights, and appraisals accelerated for both our clients and our Apprise staff. The desire for change in the valuation, and specifically appraisal industry, is evident from our rapid growth in terms of staff and revenue since we launched. Apprise's mission and investment in technology clearly resonated with appraisal professionals throughout the nation and allowed us to grow from scratch to more than 80 professionals in less than 30 months.
Approximately 80% of our hiring occurred during COVID, and 50% has occurred since mid-2021 to date, which has been one of the most competitive employment environments of our time. Additionally, our mission has resonated with clients as we have onboarded more than 280 clients to date. Our first full year of production leveraging the Apprise application was 2021, and we posted revenue of $9 million. It is important to note that this represents 30%-50% of the multifamily revenue of our national competitors, and we had effectively one-half the staff onboarded and stabilized during 2021. From first quarter 2021 to first quarter 2022, we tripled our appraisal production and increased our staff by only 70%.
Further proving that leveraging our data aggregation and web-based application, we can increase volume and revenue with less of an increase in staff than a traditional appraisal firm. Our 2022 budgeted revenue is $22 million, and our first quarter numbers outpaced budget. We continue to pitch Apprise to the largest owners and operators in REITs and are approved on many institutional and local lenders' vendor lists. Apprise continues to impress the competition with our ability to target and win clients of the largest and most established national valuation platforms. We intend to grow our revenue to $100 million in the coming years, doubling our revenue every year for the next three years. We will do this by increasing productivity per appraiser through our investment in human capital, product differentiation, and continued investment in technology.
We are developing and training a skilled research analyst pool to ensure accuracy of the data and comps within our application. We're incentivizing senior appraisers with a competitive comp model to create the next generation of commercial appraisers and promoting education and licensing. Our hiring for these entry-level positions focus on diversity, equity, and inclusion so that we can do our part to diversify an aging and non-diverse appraisal industry. We differentiate and improve our appraisal product by leveraging the data analytics and talents of recent company acquisitions such as GeoPhy, Enodo, and Zelman & Associates. This allows us a competitive advantage over our competition by differentiating our product with more robust future market condition predictions based upon aggregated historical data warehoused within our Apprise application and analyzed by GeoPhy data scientists.
We can differentiate our market narrative with more robust macro housing market intel and thought leadership from Zelman & Associates. Through our continued investment in technology and digital innovation and leveraging AI machine learning through Enodo and GeoPhy expertise, we can offer up comparable leads and suggestions, which creates production efficiencies and consistency in report preparation and delivery for our clients. The aggregation of the tax expense, rent and sale comparable information and the trending available when warehoused in our Apprise application also allows us to better service our lending clients such as Walker & Dunlop, which has made Apprise their number one provider of multifamily appraisals.
Our application and data also allows us to support Walker & Dunlop's clients across all service lines, including lending, investments, and investment sales, to assist brokerage professionals in advising their clients on a quicker close, which allows those professionals to move on to more loan and sale opportunities at a faster pace. In the next year, we are going to double the number of appraisals we are doing for Walker & Dunlop financing opportunities, which will grow our share to more than 50% of Walker & Dunlop ordered appraisals with more opportunity for expansion into the future. Today, the average appraiser produces around 7 reports per month on legacy templates. However, Apprise appraisers produce 8.5 reports per month, and our goal is to expand that monthly pace to 10-12 reports by 2023.
This equates to a 60% growth in the number of appraisals per producer. The goal by first quarter 2023 is to produce 2,000 reports per quarter, which results in a quarter-over-quarter revenue increase of more than 160%. Based upon our system and platform efficiencies, we have projected we can achieve this continued exponential growth by increasing our staff of only 75%. As previously indicated, the overall appraisal revenue in the U.S. market is estimated at $4.4 billion, and multifamily is estimated at $2 billion. Conservatively, this will put us at 2% of the overall multifamily appraisal revenue, which is in line with the estimates from the top national valuation platforms. To date, the top two appraisal firms have historically combined annual revenue that accounts for less than 10% of the overall appraisal market.
We believe we can gain more market share than historically available based upon our differentiated product and speed at which we can deliver our reports and valuation data to our clients. It is important to note that Apprise consistently delivered appraisals one week quicker to our clients in the fourth quarter of 2021. Among unprecedented transaction volume, we averaged 2.5 weeks. Increased production on our web-based proprietary application leads to an unprecedented data set for valuation purposes and the ability to harness machine learning and AI to understand various valuation changes and methodologies employed by appraisers. As we use the system, we create a flywheel of data which leads to exponential growth for our producers, as well as a training tool for an AVM.
Evra by GeoPhy is a subscription-based valuation service that provides owners and operators a more cost-effective way to understand the value of their investments and portfolios when a traditional appraisal report is not needed. Evra's access to actual and not surveyed comparable and market data creates the most powerful AVM available. As each quarter passes, machine learning can pick up on the valuation fluctuations depending upon various economic impacts in specific markets and can more accurately provide a value gut check for users. As Apprise continues to input more information through the Apprise application, machine learning will bolster what Evra can do, making it smarter and more capable of performing comprehensive portfolio valuations. Apprise and Walker & Dunlop clients can leverage a cost-effective and quick tool like Evra, and our appraisal staff can provide explanation and credibility to that product.
Valuations are at the heart of all decision-making in the commercial real estate industry, so the possibilities for a scaled, technology-driven valuation platform are nearly limitless, lending to Apprise's ability to continue to gain exponential growth in the $4.4 billion appraisal market and further support Walker & Dunlop's growth in loan and sale volume. While Apprise currently focuses on multifamily valuations, to achieve our goal of $100 million by 2025, we are working on expanding our data and web-based application to offer valuations for all commercial asset classes and invest in other third-party reporting, such as engineering reports, to offer a full service option for our clients. This will lead to quicker loan closings for all of our clients, including Walker & Dunlop, resulting in additional loan volume.
Additionally, investment sales will leverage Apprise aggregated data to better serve buyers and sellers, gain market share for their business, and create broader brand awareness for Apprise. We will use AI and machine learning to create the most accurate subscription-based AVM on the market. Apprise by Walker & Dunlop is positioned to revolutionize the valuation industry, which has remained largely unchanged for more than 20 years, and meet the growing needs of our clients. I thank you for your time this morning and now turn it over to Teun van den Dries to talk about GeoPhy.
Thank you, Meghan, and good morning, everyone. I'm the founder of GeoPhy, also now, since three months, Executive Vice President at Walker & Dunlop. With the amazing stories from Alison and from Meghan just now, I think you already have a good sort of general sense of how these things come together. I thought it would be informative to step back a little bit as to how the GeoPhy story started and how we brought that to Walker & Dunlop, into a holistic package that we are now bringing to market.
I started at GeoPhy about eight years ago, on the premise, and as with most technology companies, the assumption that a product experience that we were seeing in the commercial real estate space was materially worse off than what we saw in some other sectors, and we thought that bringing technology and data to that industry could make things massively better.
The analogy would be if you look at how things like mortgage finance work for a single-family home and how much that has revolutionized, and you compare that to the opaqueness and the relative complexity still in commercial real estate. We felt that was a potential bridge to build and an opportunity for a technology-driven solution to be a new way to approach things and a new, more efficient way to build out. We started that development by looking at bringing all of the data that you need to make a decision in this space together into one comprehensive overview, both publicly available data, like public record information, building information, as well as proprietary information around the property financials, transactions, income statements.
Having all of that data in one overview and one structure allowed us to bring all of the aspects of decision-making into one holistic view. We developed that with the markets, and that is how we first started working with the Walker & Dunlop team. They were one of the early adopters of that technology and the potential applications for how that could be brought together. In those conversations about four years ago, Willy and I started talking about leveraging that for the investment sales team, leveraging that for the debt brokerage groups. We also realized that at the time Walker & Dunlop did not have an appraisal business that this would be a very natural step to start.
That is how Apprise started as a first entry point into bringing together data and technology on the one hand, which we could provide with brands and amazing people on the other, which Walker & Dunlop could provide. That combination for the last three years has grown dramatically and shown that the intersection of people and technology gets you to massively better outcomes. That started the conversation about what more we could do. While the joint venture that we started with Apprise was very successful, we also realized that there's a scale opportunity to bringing these things together that we would be able to do faster and more effectively if we brought the two firms together.
Last year in the summer, Willy and I sat down and drew out what a potential combination of those two factors would be. You've heard Ivy talk about her team and bringing data and information into that overview. The same from Alison, the same from Meghan. It's the leveraging data and technology. What we think is it's an enabler for growth, it's an accelerant for growth. The numbers that we've seen on Apprise, the numbers that we're starting to see on SBL very much sort of prove that out. The next couple of years, while we build out that growth trajectory, we started on Apprise are moving that to SBL, but we'll of course also very much focus on bringing that same opportunity and that same technology to the broader Walker & Dunlop business.
Whether that is investment sales, whether that is the work that the debt brokers team is doing, the work that Sheri is doing on the affordable housing space, we think that all of those aspects will benefit from the same work and the same technology. The intersection of having amazing technology, having an amazing brand, and then combining that with the best people in the market, we think allows for the proposition that dramatically improves that customer experience that was the initial trigger for starting Geophy.
We're very excited for the next couple of years of growth and making sure that this customer experience can both accelerate access to information, accelerate the opportunities for people to act in this market and ultimately create a level playing field that allows everyone to make the best decisions possible. With that, I will turn the mic over to Sheri to talk about affordable housing.
Thanks, Teun van den Dries, and good morning. I'm Sheri Thompson. I'm the Executive Vice President overseeing our affordable housing and asset management platforms. I'm mainly focused right now on building and growing our affordable business at W&D. I have a background in affordable housing. I joined Walker & Dunlop a little over three years ago to oversee our FHA business, during which time we grew our originations from a little under $1 billion to over $3 billion annually. I also started my career, I won't say how long ago, as an underwriter in affordable housing, where I learned the complexities and also the impact that affordable has on building communities. I really think that this part of our business is often misunderstood as being solely social purpose-driven, but it really isn't.
I've had a lot of time recently to think about why we do this, as a reporter recently asked me if we invest in affordable housing solely to advance our ESG goals. Of course not. It's a great added benefit. It does advance our ESG goals of originating $60 billion in affordable and workforce housing. The primary reason we do this is because it's a win-win. It makes good business sense, it drives returns, and it's great for communities. As Willy said in his opening, this gives us a purpose for what we do. Financing and investing in affordable housing is part of our overall philosophy that Community Starts Here. I'm here today to talk about our acquisition of Alliant, how we're integrating them into our business to make an impact and to drive returns.
Alliant was founded in 1997 and is a top 10 syndicator. We bought their three primary business lines, a tax credit syndicator, a developer, and the preservation business. Their first business line, and largest, which drives significant returns to Walker & Dunlop, is the tax credit syndicator. As a syndicator, the team in Alliant marries investors that want credits with assets and developers that have allocations to build new affordable properties. The second, ADC, is our developer, where we're making direct investments in joint ventures that build new affordable properties. About half of the JVs are women or minorities, which is supporting our mission of building opportunities and access to capital for underserved populations. Third, ASI, is our preservation business. This is where we're making direct investments in mission-driven or what we call naturally occurring affordable housing.
Without investors like ASI, these properties could and usually are transitioned to market rate rents. We bought Alliant to drive revenues and to fill our mission to build and maintain communities. We aren't just lenders anymore. With the acquisition of Alliant, it brought with it investments in ownership in over 80,000 affordable housing units. Excuse me. This allows us to influence the financing and sale of these properties to provide valuations and appraisals, as Megan just talked about. To really understand our clients' needs and challenges and bring creative solutions to the table. To advocate for proactive legislation from a very different vantage point. Through our LP interest in Fortress, the affordable property management software we invested in in 2021, we can help bring solutions to our owners for their property management needs by deploying their cutting-edge property management software.
By combining Alliant's strength and Walker & Dunlop's lending and property sales, we'll continue to create opportunities for expansion in all of these businesses. We've owned Alliant for about five months. We're getting to know each other. We're planning for our growth. We're identifying our synergies and trying to leverage them. A great example of our synergies at work is a recent transaction where Alliant syndicated the tax credits and Walker & Dunlop did the permanent debt for Freddie Mac. This was a new client introduction from Alliant to W&D. We had no prior connection to them. On all sides, everybody really leaned in to make that transaction seamless. The result was a happy client that recognizes the power of our combined platform. That relationship is expanding into several other deals, and I expect to see additional growth with that client this year.
We're also engaged in financing properties out of Alliant's tax credit funds. With about 50-75 properties a year rolling out of their funds, we have the long-term goal of financing or selling the majority of these assets. This will drive incremental revenue and deal flow throughout our affordable platform. All of this is additive and driving revenues above our projections for Alliant at acquisition. These are really the first proof points. I expect to see the continued growth of our revenue from these synergies over the year. While Alliant generated $19 million of revenue in the first quarter, as we originally projected, as Willy was talking about earlier, we still expect it to contribute $90-$100 million for the full year.
As we mentioned in our Q1 earnings call, Alliant's business is seasonal, with much of their profitability backloaded towards the end of the year. These revenues don't include all the cross-selling synergies that we're starting to see that I just discussed. We're gonna drive that synergy further by creating a consolidated go-to-market strategy for our entire affordable business. This will include most, if not all, of the components our clients need. Debt through our GSEs, HUD, and capital markets. Equity fundraising and placement through Alliant. Investment sales and bridge debt and investment management solutions. By applying the best-in-class technology to Alliant, we're streamlining and finding operational efficiencies. The real key to our strategy here is our ability to create a coordinated approach between all these business lines to drive a seamless execution with as little friction as possible for our clients.
We're seeing that already come to fruition in how our teams are working together and the results with our clients, and we're very encouraged by that. By doing all of this, we're gonna drive revenue and increase our market share. I know you guys are all familiar with this, but if you look back at Walker & Dunlop's track record of growing market share over the past 10 years, I think we were about 2% of the multifamily market 10 years ago, and we're now nearly 10%. We're gonna use the same methodology to drive the growth of Alliant. Alliant has a little over 3% of the syndication market share right now, and we expect to at least double that in the next five years.
With the acquisition of Alliant, we've gone deep and wide in affordable housing, and our most multifaceted approach will help us gain market share, grow revenues, provide solutions to our clients, and to fulfill our mission of addressing the development, financing, and preservation of affordable housing nationwide. Thinking back to the reporter who asked me why we do affordable housing. Why we do it is because it's the win-win. It's driving returns and building community. By leveraging our synergies that I've spoken about today, we're creating exponential revenue growth in our affordable housing business. Thanks for your time. I'm now turning this over to Kelly.
Good morning, everyone. You've just heard about some new business lines, and I'm going to be discussing how we're incorporating them into our sales strategy so that we're serving the whole client. I'm Kelly Mitchell, and I joined Walker & Dunlop last June after 15 years with Fannie Mae. I most recently managed the multifamily structured transactions team there. It was W&D's strong debt platform, their significant growth, and their innovation in CRE that I found intriguing, and it steered me to come here. I manage the client services team, and we provide support to all of our sales teams, and we're spearheading the creation of tools and processes to advance our holistic client sales approach. Walker & Dunlop's foundational services are there from the very beginning to sell your property, to finance that property, and then to help through the disposition of it.
Our new services expand our support to the customer, and it fills in many of those holes that help owners throughout the entirety of their ownership lifecycle. The challenge, though, is not in providing these services, but it's in offering them, selling them, and promoting them to the right client and at the right time and before someone else does. This is what we're working on now, and it is our focus. Using our technology and our proprietary data, we're able to home in on a customer's breadth, and we see where they do business, what type of business they interact, and we can then overlay that on top of our company services, compare our current touch with that client, and determine the opportunities and make a plan around them.
By purposely building client account coverage, we're able to have the appropriate experts to support the entirety of that customer's needs, and we advise them on all potential opportunities. It improves our communication across our teams, and it closes the loop on our not losing any business. The key is we don't wanna lose any customer's business because they didn't know that Walker & Dunlop did that. For an example of what we're able to accomplish, we have a client that's been primarily a GSE borrower since 2007. In 2015, they began growing their portfolio, and we introduced to them our proprietary capital products that we could provide bridge financing. On those acquisitions, that bridge financing was intended for a GSE takeout, so again, they were a GSE client.
In 2017, they decided to do some opportunistic sales, and we were there to provide them support through our investment sales platform to list those properties. You fast-forward to 2021, and the GSE slowed down a little bit. Although they've been doing only GSE business up until 2021 from 2007, our capital markets platform was there so that we could seamlessly continue serving this client on their financing needs. Now, these are our bread and butter products. It's what Walker & Dunlop does very, very well. However, this particular client owns more than just multifamily properties, and they manage several funds. We're missing out on key business because we haven't taken a snapshot of this customer and identified the areas where we're not touching. All of our financing with this customer to date has been multifamily.
We are discussing our capital markets capabilities beyond multifamily, though, and fund managers are a perfect customer for Apprise's valuation services. Now when that team meets with this client, they're focused on all of Walker & Dunlop's products that could benefit them. This is super important for us to be able to grow market share with any particular customer. Now, let's talk about what this looks like from a volume perspective with this particular customer. Last year, we closed $272 million of GSE business and $287 million in bridge financing. That bridge financing feeds additional transactions in the future as well. We also did $121 million in investment sales and closed a $25 million loan through our capital markets platform.
This was able to introduce them to our broad capabilities for multifamily, but also other asset types that they own. Finally, because of our expansion into new services, we're able to potentially further our wallet share with this client through Apprise, through that fund valuation. In 2021, this resulted in $433 million of new business that would not have been tapped if we were only a GSE lender. Because we have all these services, the result was $705 million in volume with this one customer. Now, this is only one example. There are many others I could have chosen to talk about this morning. It really does show the capabilities we have now.
What we wanna be able to do is we're gonna scale this approach so that we are able to expand this across all of our customers. It's what our customers, what our client services team is focused on today. Scaling means that we're transacting on all asset types. It means we're talking about every service that we have that is appropriate for a particular customer. Our success here is key to our being able to double revenues and increase our originations in line with the Drive to 2025 goals that you saw earlier. We must remain focused on our customer's needs, we have to increase our collaboration across our existing and new product lines, and we are intentional in our approach to do all of these things. Our sales teams are being supported with education about all of these new services.
We're investing the time to make sure we have the right sales tools in place that include all of our products. We've also done some strategic partnerships across departments, pairing up our sales staff so that they can talk about all of the products appropriately to the customer. We're tracking our progress so that we understand our success because it's measured, it gets done. We're staying aware of the breadth of our customer's business and not just what they do with us. Managing wallet share is the way that we're going to measure our success with each of our customers. Markets and demands will evolve, but our primary responsibility is to mold to our clients' needs and give them the best product possible, no matter what that looks like. Steve is now going to discuss our operating performance.
Thank you, Kelly. Good morning, everyone. When I joined Walker & Dunlop as chief financial officer in 2013, I joined a company with 300 employees, $319 million in revenues, primarily from agency originations and servicing, earnings per share of $1.21, and adjusted EBITDA of $57 million for the entire year. Nine years later, we have almost five times the number of employees, total revenues of $1.3 billion coming from multiple different sources, 2021 earnings per share of $8.15, and adjusted EBITDA of $309 million. I would add that as I reflect on this morning's presentations, other than Willy, none of the leaders you heard from were here when I started. I'm blown away by the quality and the character of the management team we've created.
It's been an incredible experience serving as CFO of Walker & Dunlop during this period of exceptional growth and financial performance, and I plan to leverage this experience as Chief Operating Officer to bring a dedicated focus to our operations. The leadership of our accounting and finance teams is in great hands, and I will work closely with Greg over the coming weeks and months to ensure that the transition is seamless. I've enjoyed speaking with all of you over the years in my capacity as CFO, and I'm extremely excited to serve our investors in my new role as we continue to progress towards our Drive to 2025 objectives. As you've heard from our business leaders this morning, we have been very busy laying the groundwork to integrate and scale the companies that we've acquired over the past 18 months.
These acquisitions brought with them 195 new employees, including our first international employees, and an increase in the level of complexity of our operations as we move beyond just being a debt financing and property sales-focused company. My new role will involve bringing our people, brand, and technology together to integrate these investments and drive revenue synergies and efficiencies across our entire business. The Alliant Capital acquisition, which we closed in December 2021, has been immediately accretive to our financial results, but as you heard from Sheri earlier today, we still have a significant opportunity to realize synergies between our affordable housing finance platform and Alliant's scaled Low-Income Housing Tax Credit business, including their broad network of affordable housing clients. Fannie, Freddie, and HUD, W&D's three largest capital partners, are extremely focused on affordable housing.
As more and more institutional owners enter the affordable space due to the evolving macroeconomic trends, the affordable market and W&D should see significant growth in this sector over the coming years, including the achievement of our goal to originate at least $60 billion in affordable housing loans by 2025. Inside Alliant's large portfolio of affordable housing assets, between 50 and 75 properties will be eligible to be sold, refinanced, or recapitalized each year. This presents an opportunity for our scaled debt financing and property sales platforms to capture deal flow and expand our client base to Alliant Partners Development. We are starting to build a pipeline of these deals already in 2022, earlier than what we originally modeled.
When we announced the Alliant transaction, we projected revenues in the first year of $100 million with EBITDA of $60 million, and we believe we are on track to achieve those outcomes, plus the incremental benefits of the debt financing and investment sales volumes we now see in the pipeline. We have an incredible opportunity to create a differentiated end-to-end experience in the affordable housing market that includes coverage from development to tax credit equity to debt financing to sale to preservation. Our technology-enabled businesses, including Apprise and small balance lending, will continue to be a primary focus and area of growth for us. When we acquired GeoPhy earlier this year, we structured the purchase agreement to include a very significant earnout component that will keep the team focused on driving growth in these two businesses.
On top of the $85 million that we paid at closing, the team can earn an additional $205 million by hitting specific revenue, volume, and efficiency targets for Apprise and small balance lending over the next four years. GeoPhy's earn out potential related to the small balance lending platform totals $155 million and can be fully achieved if we originate $5 billion of annual SBL volume and generate $175 million of revenue from mortgage banking gains. As you heard from Alison, we have an incredible opportunity to grow our market share, not just with the GSEs, but also with our own proprietary capital source within a massive and highly fragmented small loans market.
We are going to do this by continuing to build out our quote app, increasing the efficiency of our underwriting and closing processes, and leveraging GeoPhy's technology to develop a new B2C marketing and customer acquisition strategy to expand our client base. We believe that our personalized, transparent small loan product has a real competitive advantage over other lenders in this space and are excited about the opportunities ahead as we gain traction with our new quote app. While we've already seen volume growth and increased efficiency in this area of our business, we are just scratching the surface of our full potential in the SBL market. For Apprise, the full earn out potential totals $50 million and can be fully achieved if our appraisal platform generates $75 million of annual revenues and increases efficiency measured by the number of appraisals per appraiser.
As Megan discussed, these metrics are already being closely measured and tracked. Growing our Apprise revenues from $9 million in 2021 to $75 million by 2025 will be done by leveraging technology and not by hiring more and more people to this platform. Meaning that this business will not only contribute more meaningfully to our total revenues, but also we'll see margin expansion that will benefit our bottom line over time. I will be overseeing the continued integration of GeoPhy's technology into our Apprise and small balance lending businesses and ensuring we are properly allocating our resources to maximize the revenues and efficiencies we can gain from these investments. If our team hits the targets to achieve the full earn-out potential, the resulting financial performance of our Apprise and SBL businesses would imply a purchase price multiple of roughly 6x adjusted EBITDA.
We are extremely focused on achieving the synergies we need to hit these targets, which will make this acquisition a home run for everyone. For 2022, we expect the GeoPhy acquisition to be between $0.30 and $0.40 diluted, but the additional expenses should be more than offset by revenue growth in 2023 and beyond. Finally, in July 2021, we closed the acquisition of Zelman & Associates, which continues to be viewed as one of the very best housing-focused research firms in the country. We have a real opportunity to leverage Zelman's market knowledge and customer relationships to enhance our banking and brokerage businesses. As Ivy described, we already have a few proof points of the synergies that can be gained.
At the same time, Zelman can benefit from Walker & Dunlop's brand and client base to grow its research subscriptions and investment banking opportunities, particularly as we look to add broader multi-family investment banking capabilities. Integrating our three newest businesses, Alliant, GeoPhy, and Zelman, will be a large area of focus for me in my new role, but I will also continue to oversee our servicing and marketing groups. The servicing team, led by Jim Schroeder, now manages a portfolio of $116 billion and consistently delivers a seamless experience to our clients. These servicing relationships provide sticky, long-term revenue streams that underpin our continued growth in cash flow and adjusted EBITDA and make our business model incredibly durable.
It is a privilege to work with one of the best servicing teams in the industry and to be part of a company with the financial stability that this long-term annuity-like asset provides. Our marketing team, led by Susan Weber, has continued to raise the bar with its digital communication strategies, management of the Walker Webcast, and creation of the new brand campaign that you previewed this morning. It's been extremely rewarding for me to watch our brand expand exponentially over the past couple of years, due largely to the efforts of this team, and I'm excited to see what the next few years hold for our brand, particularly as we work to promote and scale our emerging businesses.
As we make progress towards all of our Drive to 2025 objectives, we are focused on achieving the underlying financial targets of $2 billion in revenues and $13-$15 of diluted earnings per share. To deliver earnings within this range on $2 billion of revenues, we will need to maintain or expand our operating margin from the current level, which will require the businesses we are investing in to achieve our target synergies and gain scale, while we also look to drive efficiencies in our operating structure throughout the company to take advantage of the scale benefits of our business. I have strong confidence that by leveraging the unique combination of our people, brand, and technology, we will be able to achieve our ambitious long-term operational and financial goals. Thank you for your time this morning.
I'll now turn the presentation over to our new CFO, Greg Florkowski.
Thank you, Steve, and good morning, everyone. I'm honored to be speaking to you publicly for the first time since being appointed CFO of Walker & Dunlop. I'm grateful for the trust and confidence our management team and board has placed in me. I've met a few of our investors and analysts over the last couple of weeks, either virtually or in person, and I look forward to the opportunity to meet with all of you in the coming weeks and months. Because I haven't met with all of you, I wanted to start with a brief introduction before I discuss the recent addition of segment disclosures. I joined Walker & Dunlop as controller almost 12 years ago, as the company was preparing for its IPO.
I was already quite familiar with W&D when I joined because I also served as the lead engagement manager of the company's audit team for the three years prior to joining. The culture, energy, and drive of the people at W&D was what drew me to the company then, and it's what continues to drive me today. As Steve just discussed, we have achieved incredible growth during his tenure as CFO. I served as his number two on the finance and treasury side until 2018. In that role, I helped design, implement, and oversee many of the accounting policies and procedures the company relies on today. I also oversaw our treasury operations and am deeply familiar with the financing arrangements that provide capital to our business.
As is still the case today, Walker & Dunlop's growth while I was controller was fueled by acquisitions, recruiting, and the emergence of our homegrown talent as some of the very best bankers and brokers, and I was responsible for the financial modeling for many of the bankers and brokers we recruited and retained at Walker & Dunlop. My understanding of the drivers of our financial growth and the underpinnings of our corporate strategy made my transition from controller to business development fairly seamless in 2018. As the head of business development, I worked closely with our leadership team to build the Drive to 2025 and established the key drivers for success that our team has emphasized today.
The change in my role from controller to business development was an inflection point for my career as well as the Drive to 2025 because my predecessor in business development, Aaron Perlis, assumed leadership of our technology group, and he was tasked with overseeing and implementing technology as a strategy for W&D. In partnership with Aaron, we acquired three technology companies over the last four years, and those investments have transformed the way we think about technology and innovation and led to technology underpinning the Drive to 2025.
You heard from Kelly about how our data science team, many of whom joined W&D in 2019 when we acquired Enodo, has enhanced the way we go to market with our customers and given us insights into customers we've never had. You heard from Tuen and Ally about how GeoPhy is developing technology solutions to transform and scale our small balance lending processes. Meghan Czechowski shared insights into our objectives for Apprise to challenge the status quo in the valuation advisory sector. Finally, you heard from Sheri and Ivy about the addition of tax credit equity syndication, investment banking, and research capabilities to Walker & Dunlop through the acquisitions of Alliant and Zelman & Associates. Both acquisitions added key components within the Drive to 2025 that further diversify and scale our business. Tax credit equity syndication and investment banking also have unique capital needs and unique compliance requirements.
I am very excited to leverage the relationships and understanding I gained in business development to support our business from an entirely different perspective at CFO. This sets up a natural transition point to discuss our new segment reporting disclosures included in our first quarter press release and 10-Q filing. Our recent acquisitions not only scaled and diversified our company, they also changed the way we think about, manage, and measure our business. As you may have seen, we now group our business into three distinct segments: capital markets, servicing and asset management, or SAM, and corporate. The change in reporting was largely driven by our recent acquisitions as the management key operating measures and capital needs of each segment are distinct. Although we accounted for our business at a very detailed level historically, we have not managed our business at a segment level in the past.
For the first quarter press release in 10-Q, we provided detailed operating performance for each segment on a quarter-over-quarter basis. Over the course of the year, we will continue providing quarterly and year-to-date comparisons in subsequent quarters. As we pull together more detailed historical comparisons, we expect to share those with analysts and investors so you can have a better sense for the long-term historical performance of our segments. For today, I'll share some high-level historical operating performance for each segment between 2019 and 2021 to give you insight into how each segment has performed and grown and give you a sense for what you can expect going forward. The capital markets segment consists of four primary lines of business, agency lending, debt brokerage, property sales, and valuation services.
From 2019 to 2021, our capital markets segment grew transaction volumes from $32 billion to $68 billion. As a result, segment revenues grew 83% from $476 million to $873 million. The growth in revenues fueled 100% growth in net income from $136 million in 2019 to $272 million in 2021. We have consistently added bankers and brokers to this segment, and that has driven the growth in transaction volumes, revenues, and net income. We have also grown the number of property sales brokers since acquiring Engler Financial in 2015, and the number of bankers supporting our debt brokerage business to diversify our financing capabilities for our clients.
The fees generated by both fully scaled businesses have led to 800% adjusted EBITDA growth from $10 million in 2019 to $90 million in 2021. How should we think about this segment moving forward? We have established the goal of growing transaction volumes to $90 billion, including $65 billion of debt financing and $25 billion of property sales volume by 2025. We will accomplish that goal by continuing to add bankers and brokers to our capital markets segment. We will also accomplish that goal by scaling our small balance lending and valuation services businesses through a combination of people and technology. For that reason, the GeoPhy development team directly supporting those businesses is included in the capital markets segment.
During 2022, the development team and investments we are making to scale small balance lending enterprise will create a drag on the earnings and adjusted EBITDA growth of the capital markets segment, as Steve just outlined. When fully scaled, we expect these businesses to contribute meaningfully to the revenues, net income, and adjusted EBITDA already being generated by the capital market segment. The SAM segment consists of our loan servicing, principal lending and investing, Alliant, and Zelman businesses. The performance of the SAM segment is driven by the strength of our servicing and fund management portfolios. From 2019 to 2021, the servicing portfolio grew from $93 billion to $116 billion, and our assets under management grew from $2 billion to $16 billion.
The growth in the total managed portfolio drove 15% growth in revenues over that time period from $338 million in 2019 to $387 million in 2021. One thing to highlight here is that the acquisition of Alliant added $14 billion of assets under management in December 2021. The revenue growth only reflects the revenues earned during that short period of time. As we previously shared, we expect Alliant to add $90 million to $100 million of revenues in 2022 without the benefits of the synergies that Sheri is focused on realizing.
Although revenues in the SAM segment grew from 2019 to 2021, net income for this segment declined by $3 million, or 3% from $109 million to $106 million. The decrease in net income for the SAM segment was driven by a $63 million decline in interest income from loans made on our balance sheet, loans made through our joint venture with Blackstone, and placement fees on escrow balances as short-term rates fell from a high near 150 basis points to historically low levels during the pandemic.
It's also important to highlight here that because we include servicing-related revenues in the SAM segment, we also allocate the amortization and depreciation of MSRs and provision for loan losses to the segment. Both of which are adjustments that are added back to net income in the calculation of adjusted EBITDA. The SAM segment will be the predominant driver of our consolidated adjusted EBITDA. It's no surprise that adjusted EBITDA for this segment grew 11% to $335 million in 2021. As we think about this segment moving forward, there are a number of areas for growth that have us very excited. First, as we continue to execute within the capital markets segment and add more and more loans to our servicing portfolio, the SAM segment will benefit from the growth in cash servicing fees.
We have also historically increased our our servicing revenues by an average of 14% each year and expect continued growth in 2022 that will contribute to our double-digit growth targets for earnings and adjusted EBITDA. We set a goal to grow the servicing portfolio to at least $160 billion by 2025, and we remain confident we can achieve that objective as we further scale our capital markets segment. Alliant will add $0.45-$0.60 of diluted earnings per share and $60 million of adjusted EBITDA in 2022.
Beyond 2022, we expect to grow the equity syndicated by Alliant from its historical range of $350 million to $550 million as we fully integrate that team and business into our company and become more effective cross-selling all of our services within the affordable sector. We set a goal for the Drive to 2025 of growing assets under management to $10 billion by 2025. Although we accomplished that goal with the acquisition of Alliant, we remain focused on growing the $2 billion of assets managed by Walker & Dunlop Investment Partners.
Finally, Zelman brought investment banking capabilities, investing class research insights that when fully integrated, will meaningfully scale the revenues and adjusted EBITDA of the SAM segment and make us more impactful to our clients, which will benefit the recurring research revenues and deal flow of our capital markets segment. In short, we see numerous opportunities to grow revenues, net income and adjusted EBITDA in the SAM segment, and we will continue to harvest the adjusted EBITDA generated by this segment to fuel the growth of our business and total returns to our shareholders, just as we have over the last decade. Finally, the corporate segment consists of functional groups supporting our business, such as our legal, accounting, HR, office services, and technology teams, as well as the returns of joint venture and fund investments and costs associated with the capital structure of our business.
Because the nature of the corporate segment is to support the business, this segment produces very little revenue and absorbs many of our corporate costs. From 2019 to 2021, the net loss generated by the corporate segment grew 56% from $72 million to $112 million. The majority of that growth was an increase in personnel to support the growth of our capital markets and SAM segments. Although we expect the trend of elevated personnel expense in the corporate segment to continue during 2022 due to our recent acquisitions and organic growth, this is an area that both Steve and I will pay close attention to as we take on our new roles. Our people are fundamental to our business.
As we more fully integrate our acquisitions and develop more efficient processes to execute our day-to-day business through technological innovation, we must create economies of scale from our future growth. There are two other areas that I'd like to discuss here that are included in the corporate segment and will impact the bottom line of the segment going forward. First is interest expense on our corporate debt. To support our recent acquisitions, we increased the size of our Term Loan B from $300 million to $600 million at a cost of SOFR plus 225 basis points. SOFR is locked at 50 basis points through June 2022, but thereafter will increase in direct correlation with thirty-day SOFR. We also assumed a $145 million asset-backed financing upon the closing of the acquisition of Alliant.
That facility carries a fixed rate of 4.75%, and the principal will amortize as fund management fees are received over the next five to six years. The $445 million increase in debt funding, coupled with short-term rate increases, will raise the interest expense on our corporate debt in this segment. Secondly, the acquisitions of Alliant and GeoPhy were structured with $305 million in earn-outs tied to performance objectives over four-year periods. We reported an estimate of the fair value of those earn-outs upon the acquisition of both businesses, but we will be updating that initial estimate over the next four years. If the upper end of the performance targets is achieved, we will recognize up to $100 million in additional expense as those earn-outs are paid and our initial estimates are mark-to-market.
We will allocate that additional expense to the corporate segment as our view is separating the earn-out related mark-to-market adjustments provides a clean view of the ongoing operations of the capital markets and SAM segments, enabling us to better evaluate the go-forward performance of each segment. During our quarterly earnings calls over the last year, Steve and Willy have highlighted the transition in the mix of transaction volumes from MSR-rich GSE originations towards fee-rich debt brokerage and property sales originations, as we made investments to scale those two businesses over the past several years. That transition is more fully apparent with the addition of segment disclosures and highlighted by the 800% growth in adjusted EBITDA of our capital markets segment over the last two years.
Importantly, the transition in the mix of transaction volumes was not at the expense of servicing risk GSE and HUD originations, as we remain one of the largest GSE and HUD originators in the country, and our servicing portfolio and related-servicing related revenues continue to grow. Growth of the servicing portfolio and escrow-related revenues tied to short-term interest rates, coupled with the addition of Alliant's $14 billion in assets under management, will drive substantial growth in adjusted EBITDA for the SAM segment. We hope the addition of segment disclosures enables our investors and analysts to better understand this transition as we expect the recent trend of adjusted EBITDA growth outperforming growth in diluted earnings per share to continue for the foreseeable future.
Working alongside Steve as he recapitalized the company and expertly managed our capital to support our growth taught me a ton about what it takes to be a successful CFO. Building and executing our strategy over the last four years has given me an entirely different perspective as I worked with some very successful CEOs as we negotiated transactions to acquire their businesses. As I take on the CFO role, I'm eager to leverage my experience and deep knowledge of our company in this new position. We are extremely well-positioned to deliver strong financial results and growth in earnings and adjusted EBITDA over the remainder of 2022, which will be another year of significant progress towards the Drive to 2025 objectives. I'll turn the call back over to Willy to wrap up.
Thank you all for joining and listening, and I look forward to meeting and getting to know every one of you. Thank you.
Thank you, Greg, and thank you to the entire team for all of your presentations and sort of detailed information on the various parts of our business that all of you run so effectively. At this time, we'll open the call to any questions that investors may have. Kelsey, I think you're gonna run the queue, so let's open it up.
Yes. The floor is now open for questions. At this time, if you have a question, on your phone, please press star nine. But if you're on your computer, please click the Raise Hand icon at the bottom of your webcast screen. Our first question is coming from Jade Rahmani of KBW. Jade?
Thank you very much. Great presentation. Clearly, the company has grown and diversified in so many areas. Wanted to ask about the servicing portfolio and the unique asset Walker & Dunlop has, which is the servicing rights. You look at REITs that trade at extremely high multiples in the multifamily sector as well as longer duration cash flows, and I believe the servicing portfolios, the loans are prepayment-protected with close to a nine-year duration. The credit risk profile on that asset class has been extremely low historically with nearly zero losses. Then you think about the multiple WND trades at. One of the things I love about the company is you have never really pursued financial engineering.
Is there value to be unlocked vis-à-vis the servicing assets, either through a financial structure or just perhaps by talking about this asset and educating investors about the unique cash flows? I think that one step in that direction is the high adjusted EBITDA margin you showed in the segment breakout, but what are your thoughts around that asset?
First of all, Jade, thanks for joining us today and, as always, for your very insightful coverage of W&D. As you may recall, Jade, we, you know, we spend a lot of time talking about the servicing book. I would say to you that as we have invested in so many new origination platforms, we and investors have been very focused on volume growth, the growth in cash revenues and cash earnings, that have dramatically impacted our EBITDA. I think to some degree, as you say, sort of take for granted that there's this huge servicing portfolio in the background that's just kicking off cash. I would say that we have been very conservative as it relates to the discount rates we use on that portfolio. We have third-party valuations every year.
As you know, we get market-based valuations that are distinct from what we carry it on our books at. But we've never felt any real need to change the discount rates there. I would say that the other piece to it is just that, it's a key component of this company being able to grow and invest in origination capabilities, because of the cash flow that the servicing portfolio kicks off. One of the big things that we have to continue to focus on is adding MSRs to the platform and doing as much business as we can in those very MSR-rich businesses of Fannie Mae, HUD, and Freddie Mac. Steve, you wanna add anything to that?
Yeah, Willy, I was gonna make the comment, Jade, that in some ways we actually have used the value of the MSRs to our benefit from a corporate financing perspective. I say that with respect to the term loan that we first took out in 2013. You know, we do use the value of the MSRs essentially as collateral for that loan. We have, I think, used the proceeds from that term loan pretty advantageously from a company and investor perspective. You know, back in 2013, we paid off some existing bank debt, which had some fairly restrictive covenants in it.
We also used the proceeds to help remove our two largest shareholders from the roster and eliminated the overhang that I would argue was limiting our stock price performance back in 2013, 2014, and into 2015. Then, you know, through the growth of our cash flow and the reinvestment into the business, we were able to, you know, increase the term loan last year to acquire Alliant, which, you know, I think will be a game-changing acquisition for us.
A home run from a shareholder and a financial perspective. I think we have, you know, used that portfolio to our advantage in that way. By the way, I would also argue the execution we've gotten on the term loan is far better than what you would think an investment, you know, sub-investment grade company would be able to execute at.
Thank you very much. As you think about the financial leverage of the company, the fair value of the servicing asset is about $1.3 billion. The term loan is $600 million. Do you think that there's leverage capacity available? Is the plan to reduce leverage or maintain it? How do you think about the financial leverage target?
Yeah, I'll jump in on that. If Greg wants to add something, happy to do that as well. You know, the current leverage is actually higher than 600, because we also assume the securitization debt from Alliant, and that actually will naturally pay down over time, Jade. We will be de-levering the company in terms of paying down the securitization debt over the course of time. We may or may not choose to accelerate that depending on, you know, what else is out there from an opportunistic perspective. And then, you know, we've demonstrated the ability to grow EBITDA pretty significantly. As you know, we have a goal to increase EBITDA another double digits this year.
Combined with the value of the servicing portfolio, you know, it does give us additional leverage opportunity if we choose to use it.
The only thing I would add there, Jade, is just as you think about how we are levered, we also have a fairly natural hedge with our escrow balances. As the cost of that capital increases, so should our escrow balances. We feel pretty comfortable about where we are and don't necessarily, you know, see a need to de-lever on the Term Loan B side. We'll have that natural de-leveraging as Steve talked about, but otherwise feel very comfortable with our cost of capital.
Thanks very much. I'll get back in the queue.
Thanks, Jade.
We don't have any other hands raised at this time, so just as a reminder, if you have a question, please click the Raise Hand button at the bottom of the screen, or you can press star nine on your phone. Okay. Sorry, we do. Our next question is coming from Jay McCanless of Wedbush.
Hey, good morning, everyone. Thanks for taking my questions. I guess the first one with the move that we've seen in home prices, just wondering what you're hearing from the single-family rental community. Has this slowed interest in the space? Any kind of color update you could give us there would be appreciated.
That's a good one. I would put forth to you that I'm hearing more and more that a lot of people think that the single-family housing market is in for some trouble, that inflation, that both inflation as well as rising rates are gonna put some significant downward pressure in the single-family space. Had a long conversation last night with a client who wants to go and start to try and buy land from some of the single-family home builders who have gone out and bought large tracts of land with the thought of doing SFR-BFR. I would say that the one issue that happens at these times is that we're likely to see a continued lack of supply on the single family side, which will keep prices relatively high.
That gap between single and multi has only, you know, gotten so wide that people can't jump from rental into single family. If you get any kind of slowdown in the construction space of new units on the multifamily side. I met with a developer here in Houston yesterday who is trying to manage their pre-development exposure. They had one partnership back out of a deal in 2020. They had one partnership back out of a deal in 2021, and they've just had one partnership back out of a deal for 2022.
My comment to them was, "Well, if you all slow down on building, that's only gonna maintain value at all the units that you own today." I think that the interesting piece to all of that is that there is such a gap between single and multi right now as it relates to affordability, that it's gonna take a lot of movement on the single family side to make jumping into single family a realistic opportunity for most renters today. With limited new supply on the multi side and with pressure on the single family side, but not to a point where it gets down on parity, it's a pretty good landscape for rent increases on existing inventory.
You know, looping back to Jade's question as it relates to the servicing portfolio, while we are always focused on our servicing portfolio and credit risk, credit risk right now is not something that we are concerned about. We've seen massive valuation increases in the portfolio, and we've got coverage ratios on the loans that we have on the books today, the likes we've never seen before. With where rates have gone, we've also seen the fact that many, many borrowers are taking lower and lower leverage deals. I just got something on a process we ran on a multifamily asset that we sold last week. WND did the debt on it, and it's a 50% LTV loan.
The reason it's a 50% LTV loan is because we had to get to a 1.25 debt service coverage. To get to a 1.25 debt service coverage given the cap rate it was purchased at, it's a low leverage loan. We feel really good about both the loans we're originating today, as well as the stock of loans that we have in our very scaled servicing portfolio.
Okay. That's great. Thanks, Willy. So the second question I had, basically the same question that I asked on the first quarter call. A lot of multifamily starts, a lot of product potentially coming to market. Anything to be concerned about in terms of what that does to cap rates and/or to the pretty stunning rent growth that we've seen from multifamily over the last probably 12 months?
I'd reiterate two things that Peter Linneman said on our last quarterly webcast, which I had probably 10 clients repeat to me yesterday at a reception we held here in Houston. The first one is the cap rates are determined not by interest rates, but by flow of capital. Because there is so much capital chasing multifamily assets right now, we have seen limited to no adjustment in cap rates. When we have had deals that have been in process for an extended period of time, somebody put a property under contract in Q1, rates ran up by 100 basis points. They look at their numbers. We are going back to clients on a select basis, if you will, and looking for anywhere between 3%-5% price adjustments.
Given the appreciation that most sellers have seen in the assets that they're selling, they are accepting of those. The majority of transactions are going off without adjustments to price, and we've not seen across the board cap rate adjustments so far. The second thing on the supply side, we've got, you know, while there are a lot of multifamily that's under development right now, I think it's about 520,000 units. Actual deliveries in 2022 is somewhere in the high 300,000. We're not seeing in 2022 the delivery of a lot of new inventory that's gonna put downward pressure on rents.
I would put forth that given how undersupplied we are right now, and also given that there is no alternative in the single-family world, given appreciation of existing stock as well as the price point that home builders are building to, I think rent increases are gonna remain. That developer I was meeting with yesterday, we're taking an asset to market for them, and, in the meeting, two of the partners were shocked at the rents that they're getting at that property today, which is a. It was built in 2013, you know, nine-year-old asset, and they're getting better rents at that asset than they are in a property that was delivered two years ago. There was a big conversation about why that is and the location of it and what have you.
What was noteworthy to me was the fact that two of the partners didn't even know how much rent increase they'd gotten in that asset. Rent growth is very strong right now.
Okay. That's good to hear. I think the other question is we're starting to see more and more chatter about office conversions over to multifamily. You know, could you talk about how W&D could play in that market and what opportunities you're seeing right now?
It's hard. It's really hard. It sounds theoretically makes all the sense in the world. Oh, yeah, just go do it. Very, very difficult to do a conversion and to make the numbers foot once you've invested as much as you have to invest to change floor plans, change interior plumbing fixtures, everything else. And so while there's a lot of talk about it right now, there is, and there's a project here and there that we've worked on, it's nothing. You got to think about just all that has to happen there to make that actually happen. It's very complex. You've got zoning issues. You've got safety issues. There's just a lot there. It would be great if we could take a lot of these, you know, B class office buildings located at Main and Main and convert them.
It sounds really good. It's a lot harder to effectuate.
Okay. That's great. Thanks, Willy. I'll get back in queue.
Thanks.
Thank you, Jay. Our next question, we're going back to Jade Rahmani of KBW.
Thank you very much. With expenses in focus, I was looking at the capital markets adjusted EBITDA margins and stripping out the MSR, the non-cash MSR gain implies a 2021 margin of 15.6%. I know that W&D is gaining scale there. I believe some of the peers, like a CBRE, you know, they target margins and capital markets in the 20%-25% range. Is growing that margin an area of focus? What would be the drivers to get there? Are there excess expenses from recent acquisitions or hiring that weigh down those margins?
Jade, I can jump in on this. I think you kinda answered the question a little bit yourself, which is, as you know, we've been growing that segment pretty significantly in terms of hiring and recruiting both capital markets, you know, debt brokers and investment sales professionals. Given the significant hiring and the fact that there's, you know, always a ramp-up time between when the expenses come through and when the revenue comes through, I think it's fair to say, you know, there's a lagging effect on margin there as we're in growth mode in both of those places.
I'd also add in, which Greg mentioned, is the GeoPhy team and the Apprise team are both in that segment as well. There's again been significant expense growth, you know, higher than revenue, coming from those areas, which is dragging that margin down. I think on a normalized basis, we would be substantially above that 16%.
Jade, I'm just curious about that breakout on CBRE because I don't think they actually break it out and do segment reporting on that. Am I incorrect in that? Because that sounds like a high margin that you just put forth on what you're referencing to on CB and clearly on some of the other shops that we've looked at over time, getting to north of 20% margins in that segment of the market. I mean, look at Marcus & Millichap. They don't do anything close to that number.
Yeah. The companies, they don't explicitly give the breakout of segment margins by business line, but they have in their various slide decks talked to capital markets margins in somewhere around the 20%-25% range. I know HFF, which was a pure play, and their average transaction size was around $40 million, their margins were around 25%. I know Marcus & Millichap, whose average deal size is, I think, sub probably $12 million, you know, they're well below that. With the average deal size that you all have spoken to, I was assuming eventually margins would be somewhere close to 20%.
Yeah. I think that's right, Jade, if not higher.
Okay. In the capital markets. Great.
Correct.
The other question is just a mid-quarter update, which I know also investors have asked me about. How are you thinking about how the GSEs are shaping up? They did put out their April numbers, which were fairly strong up sequentially, and I know that those are on a lag due to the timing of actual closings versus rate lock. Anything that you can say there as to how those volumes are shaping up?
feel really good about sort of the outlook for the agencies for the rest of the year. Freddie Mac just put in a new president of multifamily, which is a huge move. That group has been without a leader for many months and needs leadership and guidance. Having a new leader at Freddie Mac, I think will help the team dramatically. We had a dinner with Freddie on Monday night and had a very good engaging discussion about our pipeline with them and what they're looking at for the rest of the year. On the Fannie side, you know, our partnership has been incredible. For 8 of the last 10 years, we've been Fannie Mae's largest partner.
I think one of the big issues here, Jade, is with the capital markets bouncing around and with the VIX one day being at 25 and the next day being at 34, the securitization markets are extremely tricky. Yet at the same time, while banks and life insurance companies have a lot of capital on their balance sheets, you need the securitization markets to be able to take a lot of this paper and sell it off. Fannie and Freddie's execution are viewed at as the most reliable and the ones that can execute during, you know, volatile times.
We know that clients who in 2021 would have a really competitive debt fund quote are sitting there going, "Well, I'm not so sure the debt fund's gonna be there off of this quote they've just given me." You know, we're blessed to have a capital markets group that can take a lot of deal flow to debt funds and to other sources of capital in 2021, and we still are in 2022. This market is moving in a very positive direction for Fannie and Freddie getting to their annual caps and deploying all of that capital. The one other thing I would put forth is that there was the readjustment of AMIs across the country and a rescoring of the amount of production that both Fannie and Freddie have done so far this year.
That has created capacity in the market rates phase because the AMIs went up so high. Area Median Income, to anyone who didn't know what the acronym stands for. Because AMI has moved up so significantly, there was a rescoring of what Fannie and Freddie have done and need to do for the rest of the year to hit their affordable goals, and that has created more space in the market rate segment of their annual caps.
Thanks very much for that update. Really appreciate it.
Thank you, Jade.
Thank you, Jade. We have another question coming from Daniel Altscher of FJ Capital. Dan?
Thanks. You know, appreciate all the commentary on the continued robust opportunity that exists in the multi space. You know, one of the interesting dynamics about the complex residential housing market that the builders have pointed to is the strong rent growth is one of the dynamics that's allowing them to push price so much amongst other things, with higher costs. Now that seems to be changing a little bit in that a lot of the builders, particularly in the entry level, are talking about building communities that are going to be a little bit more affordable than where they have been pricing at.
Hopefully, with supply chain challenges getting better at some point, that may allow them to turn inventory or turn their cycle times faster, which may in turn drive ultimately the ability to complete orders faster. My question is this: is that perhaps the risk to some of the rent growth opportunity we've been seeing in multi? Is that the builders do focus on more affordable, can't push price anymore, can turn faster, bring inventory on faster than the rent growth may not be at this pace sustainable for multi?
Honestly, Ivy would be exactly the person to kind of run through that analysis with, and I'm sure Ivy would be happy to talk about that issue offline. I would say this. Given that most of the developers on the single family side are building to a $400,000-$500,000 price point as the average value of the home, you can't all of a sudden cut your price to make it a $250,000 home. You've invested too much in the land and in the building. I would also say that cost inflation from my meeting yesterday with the developer here in Houston, you know, their costs just continue to go. The only cost in their entire list of things that they said they've gotten any relief on so far is lumber.
You probably know, lumber spiked up to $1,600 a thousand board foot and is now down to about $750. That's the only component. This developer does both stick built as well as concrete. That relief on lumber is actually a pretty big component to them. The other one is wages, and there's no relief on wages in both single family as well as in multifamily.
If you're building to a certain price point and you've invested all this with costs going up all the time, and then all of a sudden you don't think the market is there, you're not just able to just say, "Oh, let's just go sell it for 15% less." That gap is so wide right now between rental and purchase, given the inflation that we've seen in the value of the existing stock and given the price point with which single family developers are building to, I do not see that as being an issue anytime soon. It took them. I mean, just think about it. It took them from the great financial crisis in 2008 where single family housing stopped.
They started building again in 2010, and it wasn't until 2016 that they figured out that they ought to go after that lower price point. Finally in 2016 and 2017, the single family housing industry understood that they ought to be building to a $200,000-$300,000 price point. Then all of a sudden, because of rates rising, because of the economy expanding, and because of the pandemic, they all went back and reverted back to building to a price point that today is wildly unaffordable for most renters in America to buy and jump across. It's that mismatch I think keeps rent growth quite healthy in the multi space.
Thank you for your comments, Willy.
Yep. We have no further questions at this time, so I will turn it over to Willy.
I thought Henry had one. Wasn't Henry jumping in? I saw something in the chat that Henry wanted to ask a question. Oh, Jay asked it.
Jay took his question.
Oh, okay. Great. All good. I greatly appreciate that 300 people have been on this call for the past couple of hours, listening to us talk about W&D and what we're up to. We have a fantastic team. We have a great opportunity, and we've built this company to a size, scale, and brand that allows us to do a lot of things right now when a lot of other people are standing still. It's been a hallmark of this company to do just that.
Thank you for your interest in W&D. If you are an investor, thank you for your investment. If you are a prospective investor, we would love to have you place your money and confidence in the W&D team. It has been a good place to invest in the past, and I would reiterate my thanks to my colleagues as well as to Kelsey and Jenna for all their great work on pulling this together. Thanks everyone, and have a great day.