Red Oak Capital Holdings, LLC provided a $4.55-million loan for Eagle Crest Village Apartments, a 98-unit multifamily community located in North Bend, OR. The loan will be used to retire the existing debt and complete renovations on the 98-unit garden apartment property. The debt was written under Red Oak’s Opportunistic Bridge Loan Program, a higher-leverage, fixed-rate lending program for properties with a substantial value-creation component.

The non-recourse loan carried an 11.00% interest rate, three-year term, and represented 53.40% of the property’s stabilized value. Dave Christensen, Red Oak’s Regional Manager-West, originated the loan, which was underwritten and administered by Hermann Wendorff, Senior CRE Underwriter, and Jesus Martinez, Senior CRE Loan Administrator. Peter Breen, Director of Production for LendingStandard, brought the transaction to Red Oak on behalf of the borrower, a seasoned real estate investor.

Situated on eight acres, Eagle Crest Village Apartments consists of three buildings housing 60 studio and 37 one-bedroom apartments, and a freestanding three-bedroom single-family home. Amenities include a library, media room, fitness center, laundry facility, onsite restaurant and deli, and 119 parking spaces. The sponsor acquired the vacant former residential care facility in 2021 and has since invested over $2.3 million to convert the asset into 100% multifamily, with work roughly 85% complete at the time of the loan closing. Its leasing team has already secured tenants for the single-family home and nearly half the units at rental rates that are over 20% higher than market averages. The property is anticipated to reach full stabilization and occupancy by year-end 2024. The sponsor intends to exit the Red Oak loan via a conventional refinance and manage the community in the long term.