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Red Oak Provides $15M for DC Apartment Redevelopment
Red Oak Capital Holdings, LLC has provided a $15.5-million bridge loan for Minnesota Commons Apartments in Washington, D.C.
Ken Wood, Red Oak’s Regional Manager-Northeast, originated the debt, which was underwritten and administered by Hermann Wendorff, Senior CRE Underwriter, and Jesus Martinez, Senior CRE Loan Administrator. Steve Bowen, CEO of Your Banc Advisors, LLC, brought the loan to Red Oak on behalf of the borrowers.
The funds will be used to acquire and rehabilitate the garden apartment community, which will operate under the DC Housing Authority’s Housing Choice Voucher Program. Situated on 1.5 acres at 4069-4089 Minnesota Ave NE, Minnesota Commons Apartments consists of two three-story buildings that were built in 1942.
The sponsor’s $3.6-million capital improvement budget calls for extensive renovations to expand the unit count from 83 to 123. Upon stabilization and full lease-up, the borrower intends to refinance the Red Oak loan with permanent financing.
