Permanent Loan Case Study
Chinatown Community Development Center
Impact
- Preserve 49 affordable apartments in one of the most expensive rental markets in the US. Rents are 50% less than market rents in the neighborhood
- $2,110,000 permanent loan
- Fund seismic retrofit construction to make the building safer
Our refinance with another lender fell apart four months before a balloon note was due on 1370 California Street. They indicated at the last minute that the property was ineligible for their loan program since it is situated on a slope with a 30% or greater angle. So not a loan product for hilly San Francisco! Fortunately, NeighborWorks Capital was able to quickly provide a loan product with similar terms. We were able to refinance on time and used excess proceeds to complete the seismic and soft story retrofit for the property.
Synopsis
Chinatown Community Development Center (CCDC) purchased and rehabilitated 1370 California Street to preserve 49 affordable apartments in the heart of Nob Hill, one of San Francisco’s most expensive neighborhoods. After a change in the city’s building codes, CCDC needed additional financing to add structural reinforcements to comply with new regulations.
Challenge & Solution
Changes in building codes keep residents safe and healthy, but they can also create significant and unexpected costs for property owners. CCDC needed new financing to put in expensive seismic upgrades and maintain the affordability of 1370 California Street. NeighborWorks Capital provided a $2.11 million permanent loan to refinance CCDC’s existing mortgage loan, pay for $732,000 in seismic retrofits and other capital improvements, and fund operating and replacement reserves, ensuring the long-term viability of 1370 California Street as an affordable rental property.
About NeighborWorks Capital
NeighborWorks Capital fills a critical resource gap by investing in communities that have been underserved by traditional financial institutions. They provide flexible, responsive, and affordable financing solutions for residential and commercial real estate development and business expansion. NeighborWorks Capital is a national nonprofit, certified Community Development Financial Institution rated by Aeris-Insight serving members of the NeighborWorks America network in all 50 states, Puerto Rico, and the District of Columbia.
