2 Affordable WA Assets Land Acquisition Loans

Hunt Real Estate Capital has secured $5.5 million in funding for Colvos Terrace and Street Fawcett, two communities in Tacoma totaling 87 units.
Colvos Terrace (Image via Google Street View)
Colvos Terrace (Image via Google Street View)

Hunt Real Estate Capital has originated a 5.5 million loan for the acquisition and renovation of two affordable multifamily assets in the Tacoma, Wash., region. The portfolio includes the 27-unit Colvos Terrace and the 60-unit Street Fawcett. Shelter Resources Inc. is the borrower and one of the owners of the assets, according to Yardi Matrix data, together with nonprofit Multi-Service Center.  

Located at 2601 Hollycroft St. in Gig Harbor, Wash., Colvos Terrace is roughly 10 miles northwest of Tacoma. The property includes a two-story building with one-bedroom units. Built in 1981, the asset features a community room with kitchen and lobby, storage space, a laundry area and 42 parking spaces. Colvos Terrace is currently subject to a 5-year U.S. Department of Housing and Urban Development Housing Assistance Payments contract, which will be extended to 20 years upon the receipt of permanent financing.

The second property is situated at 435 Fawcett Ave. in Tacoma, approximately 43 miles southwest of Seattle. The three-story building contains a mix of one- to three-bedroom apartments. Completed in 1996, Street Fawcett was recently awarded four percent low-income housing tax credits, which will ensure the same rent restrictions for the next three decades.  

Bifurcated loan structure

Street Fawcett (Image courtesy of Yardi Matrix)
Street Fawcett (Image courtesy of Yardi Matrix)

The 16-year term loan with a 35-year amortization period is a single bond and deed of trust featuring two MBSs, represented as a bifurcated loan structure. Both notes will be cross-defaulted and cross-collateralized. Shelter Resources intends to invest approximately $1.1 million at Colvos Terrace and roughly $2.3 million at Street Fawcett. Both properties serve low- to moderate-income families and seniors. 

“Both properties are currently 90 percent occupied and are backed by a quality sponsor with a successful track record owning and investing in affordable properties in the local area,” said Suzanne Cope, director of loan originations at Hunt Real Estate Capital, in a prepared statement.

Most recently, Hunt Real Estate Capital also provided a 10-year Fannie Mae loan for the 638-unit Boulder Meadows community in Boulder, Colo.