Seattle, WA – May 18, 2015 – CBRE Group, Inc., (CBRE) through its FHA lending platform, announced the successful financing of Hilltop House, a 126-unit affordable senior housing apartment property in Seattle, WA. The loan is funded by CBRE through the U.S. Department of Housing and Urban Development’s (HUD) Section 221(d)(4) substantial rehabilitation mortgage insurance program. The new financing retires the existing HUD Section 202 and Flexible Subsidy Loans and funds a significant property rehabilitation. The financing includes a 12-month, interest-only construction loan followed by a 40-year, fully-amortizing permanent loan. The project is located in the First Hill neighborhood of Seattle, approximately one-half mile from the central business district. John Taylor, Senior Vice President of CBRE Capital Markets in Seattle, WA originated the loan.
The financing is being supported by a Senior Preservation Rental Assistance Contract (SPRAC) award from HUD, which will supplement rents for approximately 78 unassisted (non-voucher) tenants who currently pay very low Section 202 rents. The scope of rehabilitation work includes approximately $46,000 per unit in hard cost improvements including replacement of all galvanized piping; exhaust and heat recovery conversion for the overall building and commercial kitchen; electrical panel upgrades; unit upgrades of flooring, cabinets, and appliances; conversion of bathtubs to step in showers; and common area upgrades to the corridors, first floor office area and entry.
The project is owned by Hilltop House, Inc., a Washington State non-profit corporation that was formed in 1965 and has owned and operated Hilltop House since the property’s completion in 1967. Darla O’Brian is the Administrator. The Board of Trustees is chaired by Muriel Jones-Cashdollar who said, ”The Hilltop Board is pleased that this project is moving to the construction phase. Our building is really in need of upgrading so that we can continue to provide affordable housing for our senior residents. We could not have done it without CBRE.”
Hilltop House received one of only 12 SPRAC contracts awarded nationwide. Sarah Nichols of Beacon Development Group, who is providing development and construction oversight services states, “SPRAC is a tremendous tool for preserving vulnerable multifamily properties and protecting homes for low income seniors.”
Design services are provided by SMR Architects and Walsh Construction is the general contractor.
Stephanie McFadden, Managing Director of CBRE Capital Markets said, “CBRE is proud to be involved in this project, one of the first in the nation to successfully combine a SPRAC contract with FHA 221(d)(4) financing. As a result, Hilltop House will significantly upgrade its facilities and continue to offer high quality, affordable housing for seniors in Seattle for many years to come.” CBRE is a direct FHA lender offering the full array of FHA-insured financing for both multifamily and healthcare.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com
