Seattle, WA – October 27, 2015 –CBRE Group, Inc., (CBRE) through its FHA lending platform, announced the successful financing for the construction of Lake City Seniors Apartments, an 80-unit 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 231 new construction mortgage insurance program. The financing includes a 16-month, interest-only construction loan followed by a 40-year, fully-amortizing permanent loan. The project is located in the Lake City neighborhood of Seattle, approximately ten miles from downtown Seattle. John Taylor, Senior Vice President of CBRE Capital Markets in Seattle, WA originated the loan.
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The developer of the project combined the FHA financing with equity from 16 foreign investors under the federal government’s EB-5 visa program, which provides a green card to immigrant investors who invest at least $500,000 in a job-creating enterprise.
The financing will fund construction of the subject’s 80 Class A senior apartment homes with a mix of one and two bedroom units, two ground floor live/work units, over a 62-space underground parking structure. The subject will offer 16 units affordable to seniors with incomes below 75% and 80% of area median income under the City of Seattle Multifamily Property Tax Exemption Program.
The project is owned by Lake City Project Associates, LLC, a Washington State single purpose entity which is an affiliate of Steve Smith Development LLC and EB-5 Coast to Coast LLC. The developer, Steve Smith, said “It was a great pleasure to work with John Taylor and his team at CBRE on this innovative and pioneering approach to financing a real estate development by combining FHA with EB-5. We are already working on our second project with CBRE utilizing the same financing concept: a 61-unit senior housing project in Marysville, WA, on which we expect to break ground in mid-2016.”
Stephanie McFadden, Managing Director of CBRE Capital Markets said, “We are pleased to provide financing for Lake City Seniors; this project will bring affordable and market rate seniors apartments to a vibrant neighborhood in Seattle.” 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.