Red Oak Capital Holdings, LLC has granted a $15.5-million bridge loan for the redevelopment of Minnesota Commons Apartments in Washington, D.C.
The debt was originated by Ken Wood, Red Oak’s Regional Manager-Northeast and underwritten and administered by Hermann Wendorff, Senior CRE Underwriter and Jesus Martinez, Senior CRE Loan Administrator. The loan was brought to Red Oak on behalf of the borrowers by Steve Bowen, CEO of Your Banc Advisors LLC.
The funds will be utilized for the acquisition and rehabilitation of this garden apartment community which will operate under DC Housing Authority’s Housing Choice Voucher Program. Located at 4069-4089 Minnesota Ave NE on 1.5 acres of land ,the property comprises two three-story buildings constructed in 1942.
With a capital improvement budget totaling $3.6 million provided by the sponsor,the plan is to significantly renovate the property increasing its unit count from 83 to 123 units.Upon reaching stabilization and full lease-up,the borrower intends to refinance with permanent financing through Red Oak Capital Holdings’ loan program.
