San Francisco, CA – January 29, 2015 – CBRE Group, Inc. (CBRE), through its FHA lending platform, announced today the successful refinancing of The Heritage Apartments, an affordable apartment community for senior residents (62+) located in Concord, CA. The $6.2 million loan was funded through HUD’s Section 223(f) program, providing a 35-year, fully amortizing, fixed rate and non-recourse loan structure.
The loan will refinance existing debt and provide funds for moderate capital improvements to The Heritage, a 196-unit, 9-story apartment building. Funded improvements include HVAC units, appliances, fixtures and cabinetry, general site upgrades and increased accessibility. In addition, the loan will provide approximately $5.7 million in additional cash to the sponsor to assist in the refinancing of the neighboring Plaza Tower Apartments.
Originally constructed in 1976, the property contains 88 studio units, 70 junior one-bedroom units, and 38 one-bedroom units. The property was originally developed as a HUD affordable apartment complex under the 236 program and currently receives project-based Section-8 rental assistance on 121 of the units. The property is well located along the south side of Pacheco Street between Grant Street and Colfax Street in downtown Concord; the neighborhood is very walkable and within proximity to numerous amenities, including a local farmer’s market just across the street.
The property is owned by Concord Homes, Inc., a California non-profit corporation formed in 1970 to provide housing to elderly and handicapped persons in the Concord area. Day-to-day operation of The Heritage is trusted to Barcelon Management, overseen by Concord Homes’ board of directors.
Dennis Horgan, Board Chair, Concord Homes, Inc. stated, “The Board of Directors for Concord Homes, Inc. greatly appreciates John Taylor and the whole crew from CBRE for all of the work that they did to move this refinance to a great closing. The entire CBRE team was tireless in their assistance and direction. We couldn’t have done it without them.”
The financing of The Heritage was originated by John Taylor, Senior Vice President of CBRE Debt and Structured Finance in CBRE’s Seattle office. Stephanie McFadden, Managing Director and head of CBRE’s FHA lending platform, said, “We are pleased to continue working with FHA to provide a financing solution that will help maintain the long-term viability of this affordable rental property for seniors.”.
CBRE is a direct FHA lender offering the full array of FHA-insured financing for both multifamily and healthcare.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
