The subject is a 36-unit multifamily garden property located at 4559 Benning Road SE, 4569 Benning Road SE and 4880 C Street SE in the Fort DuPont Park neighborhood of the District of Columbia. The improvements, which consist of three (3) three-story multifamily buildings and surface parking, were constructed in 1965 and are situated on a single tax parcel totaling 28,485 SF (0.65-acres) of land area. Based on the rent roll provided (dated January 1, 2021), the property is currently 55.6% occupied.
The new Red Oak Capital Loan has a face amount of $6,775,000 for a term of 1-year. The loan is set at 10% with an 8% pay rate with a 2% Accrual (monthly interest). In an event the Borrower exercises a 6-month extension option after year one – there will be a 1 percent fee attached to each.
The upfront lender fee is 3% and the Warrants is 4%. This provides a Par Bond Yield of approximately 19% in year one.