Walker & Dunlop Arranges $16M Loan for Affordable CA Asset

Bridge Housing is building a 68-unit property in San Mateo, dubbed Bay Meadows Apartments, that is scheduled for completion in June 2020.
Rendering of Bay Meadows Apartments. Image courtesy of Walker & Dunlop
Rendering of Bay Meadows Apartments. Image courtesy of Walker & Dunlop

Walker & Dunlop has closed a $16 million Freddie Mac loan for the permanent financing of Bay Meadows Apartments, a 68-unit affordable housing community in San Mateo, Calif. Nonprofit Bridge Housing is the developer of the project. Located at 2775 S. Delaware St., the property will be near The Nueva School San Mateo Campus and Bay Meadows Park.

Built with nine percent low-income housing tax credits, the community is slated for completion by mid-2020, with the permanent loan targeted for conversion in September 2020. The 17-year loan has a maximum loan-to-value of 90 percent and a minimum debt service coverage ratio of 1.1 percent. The favorable loan terms also provide the certainty of execution required by the developer’s other capital partners, Silicon Valley Bank and National Equity Fund Inc.

Walker & Dunlop’s Jeff Kearns and Matt Naish worked on behalf of the developer. Affordability has been declining in the greater San Francisco metro area. According to Yardi Matrix’s most recent San Francisco report, the tepid construction activity and softening deliveries have pushed rents up 3.9 percent year-over-year through October to $2,662, nearly double the national average.