Property Gallery 9 Photos

Exterior Street View Rooftop Deck Skyline View Rooftop Grill Studio Studio Kitchen Studio Layout Rooftop Terrace

‍

THE OPPORTUNITY

A Stabilized New Build That Needed Time, Not a Rescue

The sponsor had just finished a four-story, 28-unit studio building in Seattle's University District. It was 93% occupied, and the construction loan was coming due. Their long-term plan was a HUD loan, and they had already started that application. But HUD financing takes time, and a new building needs operating history before it can get the best permanent terms. The sponsor needed a lender who could retire the construction debt quickly and give the property room to season. They came to RRA Capital through Berkadia.

THE PROPERTY

28 Studios, a Short Walk from Campus

The building sits at 5253 15th Ave NE, a short walk from the University of Washington. It was completed in 2018. Every one of its 28 studio units is laid out so that no two units share a wall. Residents get a rooftop deck with city views, an elevator, bike storage, private storage units, secure entry and a laundry room on every floor. Units have touch-activated cooktops, Whirlpool refrigerators and Cadet convection heaters. A Seattle-based management firm with deep local experience runs the property.

THE RRA SOLUTION

A Non-Recourse Bridge Sized for the Seasoning Period

RRA provided a $5,250,000 non-recourse bridge loan with a 24-month interest-only term and two 6-month extension options. The loan paid off the construction loan in full and included a modest reserve to cover any cash flow shortfalls during the seasoning period. The loan was sized against an as-is value of $6,950,000. RRA closed on December 8, 2020.

EXECUTION

Steady Occupancy for the Life of the Loan

The property performed as planned. Occupancy held at about 93% for the entire loan term, building the operating history the business plan called for.

THE EXIT

Repaid Early, No Extensions Needed

The sponsor repaid RRA's loan in full on April 20, 2022. That was about 16 months after closing and 8 months before the initial maturity date, and the extension options were never used.

‍