Red Oak Capital Holdings, LLC has provided a $15.5-million bridge loan for the acquisition and rehabilitation of the Minnesota Commons Apartments in Washington, D.C. Red Oak’s Ken Wood, Hermann Wendorff, and Jesus Martinez originated, underwrote and closed the loan, which was structured through the firm’s Opportunistic Bridge Loan Program and carries a floor rate of 12.25%, a 24-month initial term and an LTSV of 36.66%.

Minnesota Commons Apartments consists of two three-story buildings that were built in 1942. The sponsors plan to operate the garden community under the DC Housing Authority's Housing Choice Voucher Program. In addition to cosmetic and functional upgrades, the borrowers’ $3.6-million capital improvement budget calls for extensive renovations that will expand the unit count from 83 to 123, including a reconfiguration to add more two- and three-bedroom units. Upon stabilization and full lease-up, the borrower intends to refinance the Red Oak loan with permanent financing.