Red Mortgage Completes $58.8M 221(d)(4) Construction/Refi Loan on Behalf of Development in San Fran’s Mid-Market District
- Jun 12, 2014
Dallas—Red Mortgage Capital LLC, the mortgage banking arm of RED Capital Group, provided a $58.8 million FHA Section 221(d)(4) mortgage to San Francisco-based Emerald Fund Inc. for 101 Polk Apartments in downtown San Francisco. The city is the most densely settled large metropolitan area in the state of California, and housing demands continue to be a challenge for the Bay Area.
Serving as both the developer and management agent, Emerald Fund Inc. will construct and deliver 162 units of new Class-A housing, of which 19 units will be affordable to residents earning no more than 55 percent of area median income, to the downtown San Francisco area. Located in the Civic Center/Mid-Market District of San Francisco, which is undergoing significant revitalization, this project will provide desperately needed housing. The 162-unit community will be located on .30 acres, and consist of a 13-story residential structure with a subterranean parking garage. The area surrounding the Civic Center/Mid-Market District consists of a mixture of commercial and residential development with office and multifamily developments transforming the neighborhood into a desirable live, work and play location. Many high-tech companies such as Twitter, Dolby Laboratories, Yammer and Zoosk also have an established presence in the immediate area. As well, the neighborhood includes many cultural amenities and performing arts facilities alongside City Hall, the Veteran’s War Memorial building and several state and federal government offices.
Rick Andrews, Red Mortgage Capital, says, “The City of San Francisco is a challenging market for new construction due to its onerous entitlement, plan review, and development approval process. By utilizing RED Capital Group’s extensive experience and long relationship with HUD, we were able to help Emerald Fund Inc. navigate the loan process to a smooth finish.” Andrews went on to say, “Working with Emerald Fund again was a real pleasure. Their professionalism, attention to detail and team work prove them an asset to the San Francisco housing market.”
Marc Babsin, Emerald Fund, comments, “Red Capital Group did a truly excellent job of managing every step of the HUD application and review process. They identified issues before they arose and helped us get to solutions.” Babsin continues, “RED has an excellent working relationship with the local HUD office, which helped make the process easier. Thank you for the superb effort and execution.”
HFF secures $80M refinancing for Hoboken, N.J., luxury multi-housing community
Florham Park, N..J.—HFF has secured an $80 million refinancing for North Independence at The Shipyard, a 185-unit luxury multi-housing community in Hoboken, N.J.
Working on behalf of Ironstate Development, HFF placed the 12-year, fixed-rate loan with a life insurance company. Loan proceeds were used to pay off an existing mortgage.
North Independence at The Shipyard is located at One Independence Court along the Hudson River in Hoboken, between the Lincoln Tunnel and Holland Tunnel providing access to midtown Manhattan and all the major New Jersey highways. The property is situated within the Shipyard neighborhood, which consists of five multi-housing communities that share amenities, retail shops, a one-acre park, ferry stop and marina on the Hudson River. North Independence has one-, two- and three-bedroom units averaging 1,174 square feet each. The 95 percent leased property shares amenities including a fitness center, outdoor pools, residents lounge, indoor and outdoor child play areas and garage parking.
The HFF debt placement team representing the borrower was led by Senior Managing Director Thomas Didio and Associate Director Samuel Seiden.
“HFF was happy to assist Ironstate Development with this refinancing. We are pleased we were able to secure a favorable interest rate for such a quality borrower and property,” says Didio.
Ironstate Development is a Hoboken -based development firm that is currently engaged in the development of more than $1 billion of residential, hotel and mixed-use properties in New Jersey and New York.