Greystone Provides $221M Loan for CA Affordable Housing
- Dec 20, 2016
Palo Alto, Calif.—Greystone has provided a $220.84 million Freddie Mac credit facility for Woodland Park Property Owner LLC, a 1,808-unit affordable housing project located in East Palo Alto, Calif.
Managed by Sand Hill Property Company and its affiliate, Woodland Park Communities, Woodland Park consists of 118 individual land parcels, includes a mix of small properties (one-50 units) and conventional multifamily and commercial properties, presenting a range of investment options.
“The appeal of this property includes a Class A location—just minutes from Palo Alto’s CBD, the affordable housing component, and the massive land area,” Rob Russell, Greystone’s head of CMBS production, told MHN. “This financing is significant because Freddie Mac customized the credit facility based on the owner’s business plan.”
The Freddie Mac credit facility is expandable up to $330 million and includes a 5-year term with two one-year extension options.
“The property will see upgrades to existing amenities, which includes 15 swimming pools,” Russell said.
The need for affordable housing in the area was dire, according to Russell.
“Rents have skyrocketed due to the growth of technology companies and the proximity of housing to Palo Alto and Silicon Valley,” he said.
John Nelson, executive vice president, and Erik Franks, senior associate, of CBRE Capital Markets’ Debt & Structured Finance team served as advisors Sand Hill Property Company.
“Greystone’s experience across a wide range of disciplines—affordable housing finance, structuring complex transactions, and commercial property portfolio guidance—all came into play throughout the timeline of this deal,” Joe Mosley, Greystone’s executive managing director and head of agency lending, said. “Above all, our trusted relationship with Freddie Mac was the catalyst for closing this deal.”