San Francisco—A unique financing agreement recently allowed for the redevelopment of an affordable seniors housing community in San Francisco. Red Capital Markets LLC and Red Mortgage Capital LLC, the investment banking and mortgage lending areas of Red Capital Group LLC, provided bond underwriting and mortgage services relating to the property.
The affordable housing, named Woolf House, needed a “substantial rehabilitation,” Richard Andrews, Senior Managing Director, Red Mortgage Capital, tells MHN. Woolf House is a 182-unit building, which includes eight studios and 174 one-bedroom units.
The transaction included over $33 million in a conventional/taxable GNMA-backed/FHA Section 221(d)(4) substantial rehabilitation loan, and held over $16 million as collateral in text-exempt bonds. Andrews says that what makes this deal unique is that they get the benefit of a lower interest rate.
Once the revitalization is complete, Woolf House will benefit many area seniors who can’t afford conventional housing.
“This is a preservation site, so people won’t pay more than 30 percent of their income,” Andrews says. He adds that people can only qualify to live in the building if they earn less than 50 percent of the median income in the area.