Red Oak Capital Holdings provided a $2.65-million bridge loan for the purchase and refurbishment of a garden apartment community located at 4725 Minnesota Ave. NE in Washington, DC. All 12 units of the three-level property will ultimately be leased to residents under the District’s popular Housing Choice Voucher Program.

The loan carries a fixed rate of 10.00%, with an initial term of 12 months with two 6-month renewal options. The proceeds provide for the property’s purchase and approximately $300,000 for capital improvements and closing costs. The borrowing entity, 4725 Minnesota Ave NE, LLC, is led by a private investor who owns and manages more than 25 multifamily properties in the Mid-Atlantic. Having built this business over the past decade, the sponsor is a specialist in the region’s subsidized housing market. It intends to exit the Red Oak loan through a permanent loan refinance or sale.

Built in 1965, the 9,600-square-foot property sits on a quarter acre of land within the Deanwood neighborhood of upper northeast Washington, D.C. Upon completion of the upgrades, all 12 of the renovated apartments will feature three-bedroom, one bath layouts of approximately 800 square feet each, with all-new appliance packages, flooring, bathrooms, bedrooms and living areas.