Pillar Originates $13 Million Fannie Mae Loan for Acquisition and Extensive Renovation of Section 8 Senior Housing in Tacoma, Washington

Pillar, Tacoma, San Francisco, Guggenheim Partners, The Reliant Group, Fannie Mae,Market Street Apartments, Rainbow Housing, residential real estate news

image003San Francisco– January 8, 2015 – Pillar, a Guggenheim Partners affiliate and an industry leader of financing solutions for affordable and conventional multifamily properties, announced today that it has originated a $13 million Fannie Mae loan to The Reliant Group for the acquisition and renovation of Market Street Apartments, located in downtown Tacoma, Washington. Market Street Apartments is a 125-unit, Section 8 senior housing property. The transaction allows The Reliant Group, an experienced affordable housing developer, to acquire and extensively renovate the property. The transaction ensures the long-term preservation of this affordable senior housing asset.

Peter Nichol, Managing Director in Pillar’s San Francisco office, secured the Fannie Mae loan which, combined with multiple series of tax exempt bonds and tax credit equity, will facilitate the interior and exterior renovation of the property. The borrower entity is a joint venture between The Reliant Group, an affordable and market rate multifamily property developer headquartered in San Francisco, and Rainbow Housing Assistance Corporation, a nonprofit organization located in Phoenix, Arizona. The Reliant Group and Rainbow Housing have completed more than 30 tax credit transactions together. The Market Street transaction closed on December 1, 2014.

“We have worked repeatedly with The Reliant Group to structure the right solutions for their complex affordable housing transactions,” said Mr. Nichol. “Over the course of the past year, we originated nearly $50 million in Fannie Mae loans with senior and subordinate bond structures for The Reliant Group’s acquisition and complete renovation of a total of six affordable housing properties.”

The Reliant Group and Rainbow Housing Assistance Corporation are experienced developers and owners of affordable multifamily housing. Earlier this year, Pillar originated a similar capital structure for another partnership formed by The Reliant Group and Rainbow Housing for the acquisition and renovation of a portfolio of five affordable housing properties in Southern California.

“We value the certainty of execution that Pillar brings to these transactions,” said Caskie Collet, Chief Operating Officer of The Reliant Group. “Pillar’s ability to create highly customized solutions allows us to constantly take on complex and challenging projects, and we know the deals will close.”

About Pillar
Pillar and its affiliates are leading providers of financing solutions for multifamily and healthcare properties. The Pillar companies include a national Fannie Mae Delegated Underwriter and Servicing (DUS) lender for both conventional and affordable loans, a Freddie Mac Program Plus and Targeted Affordable Seller Servicer, a MAP-approved Federal Housing Administration lender, and an approved Ginnie Mae Multifamily issuer specializing in construction and permanent multi-family and healthcare debt financings. Pillar provides a full array of financing solutions to owners of multifamily properties, including financing solutions for market-rate and affordable-housing multifamily mortgages, student housing, senior housing, manufactured housing and credit facilities.

Through its merger with Cohen Financial, Pillar has increased access to conventional commercial real estate capital users and providers. In addition, it is now an Above-Average rated Primary and Special Servicer and services over $22 billion of loans for a variety of clients.

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