The nearly $3 million loan to acquire and renovate the Chesapeake Apartments, a 14-unit apartment community in Washington, D.C., in an area where the sponsor already owns more than 20 multifamily properties.
The financing will be used to execute capital improvements that encompass the conversion of market-rate apartments to affordable housing. Renovations to the property include converting the existing units into 16-units of three-bedroom housing for the District of Columbia Housing Authority’s (DCHA) Housing Voucher Program. The improvements are expected to bring the appraisal value post-conversion to $4.4 million.
This Financing is part of Red Oak’s ESG Environmental, Social, and Corporate Governance initiative and Red Oak is actively looking for real estate lending opportunities that fit ESG guidelines.
The property was constructed in 1952 and consists of one building spread across the .12-acre site. The unit mix includes floorplans ranging from 2 bedrooms to 3 bedrooms, with residences averaging 700 square feet in size. The property is located near transportation, job centers, parks, schools and shopping.