Red Mortgage Capital LLC, the mortgage banking arm of comprehensive capital provider Red Capital Group LLC, has financed a $72.24 million FHA Section 221(d)(4) insured mortgage loan that will provide for the rehabilitation and permanent financing on a 308-unit multifamily property located in San Bruno, Calif., approximately 10 miles south of San Francisco.
Pacific Bay Vistas, as the property will be named, was constructed in 1984 and acquired by Aimco, a Denver.-based REIT, as part of a previous large portfolio acquisition. Proceeds of the FHA financing will be used to undertake a rehabilitation of the property.
The rehab plans include new wall and ceiling insulation, exterior siding, kitchen layouts featuring Energy Star appliances and dual-pane windows. Common amenity improvements will include a fitness center, clubhouse, theater, indoor pool, outdoor covered and heated lounge with fireplace, fenced dog park and sustainable, drought-tolerant landscaping design.
As a result of the financing, the borrower secured a fixed-rate loan that covers both the rehab and permanent financing phases. The loan is non-recourse and, once converted to the permanent phase, will fully amortize over 40 years.
“Support for this project from HUD San Francisco and, because of the loan size, HUD in Washington DC, demonstrates their commitment to redevelopment and creating a beneficial asset for the local community,” Anthony D. Cinquini, senior managing director and lead banker for Red, noted in a statement.