SAN FRANCISCO, CA - RED Mortgage Capital, LLC, the mortgage banking arm of RED Capital Group, announced that it provided a $58.8 million FHA section 221(d)(4) mortgage to San Francisco based Emerald Fund, Inc. for 101 Polk Apartments in downtown San Francisco. The city is the most densely settled large metropolitan area in the state of California and housing demands continue to be a challenge for the Bay Area.
Serving as both the developer and management agent, Emerald Fund, Inc. will construct and deliver 162 units of new Class-A housing, of which 19 units will be affordable to residents earning no more than 55% of area median income, to the downtown San Francisco area.
Located in the Civic Center/Mid-Market District of San Francisco, which is undergoing significant revitalization, this project will provide desperately needed housing. The 162 unit complex will be located on .30 acres, and consist of a 13-story residential structure with a subterranean parking garage. The area surrounding the Civic Center/Mid-Market District consists of a mixture of commercial and residential development with office and multifamily developments transforming the neighborhood into a desirable live, work and play location. Many high-tech companies such as Twitter, Dolby Laboratories, Yammer and Zoosk also have an established presence in the immediate area. As well, the neighborhood includes many cultural amenities and performing arts facilities alongside City Hall, the Veteran’s War Memorial building and several state and federal government offices.
Rick Andrews, RED Mortgage Capital, LLC said, “The City of San Francisco is a challenging market for new construction due to its onerous entitlement, plan review, and development approval process. By utilizing RED Capital Group’s extensive experience and long relationship with HUD, we were able to help Emerald Fund, Inc. navigate the loan process to a smooth finish.” Andrews went on to say, “Working with Emerald Fund again was a real pleasure. Their professionalism, attention to detail and team work prove them an asset to the San Francisco housing market.”
Marc Babsin, Emerald Fund, Inc. commented, “RED Capital Group did a truly excellent job of managing every step of the HUD application and review process. They identified issues before they arose and helped us get to solutions.” Babsin continued, “RED has an excellent working relationship with the local HUD office, which helped make the process easier. Thank you for the superb effort and execution.”