WASHINGTON, DC - RED Mortgage Capital, LLC, the mortgage lending arm of comprehensive capital provider RED CAPITAL GROUP, LLC, announced it closed an FHA insured loan for property owner Edgewood IV Limited Partnership for the rehabilitation of Edgewood IV, an affordable housing complex located at 611 Edgewood Street, NE, Washington, D.C.
This 11 story apartment high-rise was originally constructed in 1974 and substantially rehabbed in 2002/2003 with Low Income Housing Tax Credits (“LIHTC”) under the FHA Section 221(d)(4) program. Of the 258 units, 103 apartments have a Section 8 HAP contract with 50 percent of the total units restricted to 60% AMI per a LIHTC regulatory agreement.
The key principal of the project is Community Preservation and Development Corporation (“CPDC”), a non-profit real estate developer that has focused on the acquisition, redevelopment, and operation of affordable housing and the provision of resident services since its inception in 1989. During that time, CPDC has substantially increased the stock of affordable housing in the mid-Atlantic region, and today owns and operates over 4,500 multifamily apartment units serving more than 9,000 residents.
Tracy Peters, Senior Managing Director for RED said, “As a result of this refinancing, the owner was able to decrease the interest rate on Edgewood IV significantly plus generate over $2 million in funds for repairs to the property. RED structured the prepayment terms on the new note to allow CPDC flexibility when it considers next steps with recapitalizing the property after the initial 15 years of the tax credit period ends.”
“Our goal was to refinance Edgewood IV in order to take advantage of the very low interest rate environment and to generate funds to repair and upgrade the property. These goals were accomplished with the assistance of RED and in cooperation with the HUD Baltimore office,” said Chris LoPiano, Senior Vice President of Real Estate at CPDC. LoPiano continued, “Edgewood IV is now well positioned to continue to provide affordable housing for an area of Washington, D.C. that has significant market rate development activity and upward pressure on rents.”