Sponsored by Freddie Mac Multifamily
Woodland Park in East Palo Alto, California, is a small community of 2.5 square miles. It sits at the center of Silicon Valley—one of our country’s most expensive communities—surrounded by giant enterprises like Facebook, Google, NASA’s Ames Research Center, and homes with a median value of $1,203,400.
Inside this affluent region, Woodland Park provides a pocket of hope for hard-working people who service the surrounding corporations. It offers the only available housing for low- and very-low income households. Made of older housing stock, the community of over 100 buildings includes a 200-plus unit apartment building, single-family rentals, two-to-four unit buildings, and some commercial space. If the 1,800 households couldn’t call Woodland Park home, some residents would need to commute to work 2-3 hours one way. A number of residents hold two or three jobs, so living close to work is key.
Seeking funding to manage and maintain the properties, the owner of Woodland Park approached CBRE and Greystone. This borrower sought to improve the quality of life for the residents and the neighborhood.
The Innovative Solution
Working together, CBRE and Greystone tapped Freddie Mac Multifamily’s Revolving Credit Facility because they knew it would allow the borrower to finance numerous types of collateral. This enabled the borrower to re-invest in the neighborhood, with improved maintenance, safety and capital improvements, and better service to residents.
Freddie Mac was able to structure its Revolving Credit Facility so that it could be used to preserve housing for low- and very-low income families. The lenders and Freddie Mac agreed this was the right solution for this property owner’s need. They also recognized that it would preserve the only affordable housing units in Silicon Valley, so they rolled up their sleeves to get it done.
This is just one example of how Freddie Mac Multifamily is working creatively with lenders and their borrowers to tackle multifamily financing challenges, and to preserve affordable rental housing. See more at www.freddiemac.com/innovate.