Redwood Trust Inc. is participating in a multifamily whole-loan investment fund in a bid to expand its access to rental-housing credit.

Earlier in January, Redwood invested in a limited partnership created to acquire up to $1 billion of floating rate, light-renovation multifamily loans from Freddie Mac. Redwood, a real estate investment trust, has committed to fund $78 million through the partnership and has funded around $20 million.

Freddie Mac is providing a debt facility to finance loans purchased by the partnership. After the partnership's acquisitions have reached a threshold, participants will consider including related loans in a Freddie-sponsored securitization. The limited partners can acquire the subordinate securities were a securitization to occur.

[caption id="attachment_9490" align="alignleft" width="127"] Christopher Abate[/caption]

"Expanding Redwood's reach into the multifamily whole-loan space is another example of our ability to identify and execute on innovative ways to scale our business for profitable growth," said Christopher J. Abate, CEO of Redwood. "This investment strengthens our relationship with Freddie Mac and furthers our efforts to invest our shareholder's capital in areas of the housing market where it is most valued. We look forward to deploying the remainder of the capital we have committed to the fund."

Hunt Real Estate Capital has arranged a Fannie Mae affordable multifamily loan in the amount of $19.5 million to finance the acquisition of a multifamily property, located in Austin, Texas.

Blunn Creek Apartments consists of 280 apartments and is comprised of 12, three-story buildings. The borrower, Avanath Capital Management, has acquired more than 8,000 apartment properties in 12 states since 2008.

“The borrower has allocated approximately $2 million in funding for a variety of interior and exterior improvements,” said Paul Weissman, senior managing director and head of originations for affordable housing finance at Hunt Real Estate Capital. “We were pleased to partner with this qualified sponsor on such a nice property to offer residents of Austin a solid opportunity for affordable housing.”

Blunn Creek is an affordable housing property and 100% of the units are restricted to individuals or families whose income is 60% or less of the area median income. Hunt provided a loan that featured four-years of interest only payments on the property.

Common area amenities include gated access, on-site management, a clubhouse, laundry facility, fitness center, business center, picnic areas, barbecue grills, covered parking, a playground and a pool. In addition, 32 units are accessible by persons with disabilities.

Elevation Financial Group, a provider of senior and multifamily affordable housing, has sold Serenity Apartments at Baton Rouge.

The 328-unit multifamily community sold for $15.5 million or $47,256/unit. Elevation purchased the property in August 2016 for $4 million or $12,195/unit. At the time of acquisition, almost half of the apartment units weren’t fit to live in and the grounds were in disrepair.

Just days before the deal closed, Baton Rouge experienced a flood that destroyed much of the surrounding area and left thousands homeless.

Elevation worked with local and other organizations to restore more than 160 units, roof replacement, extensive asphalt and concrete repair, exterior paint. Also, it reconstructed an additional 10 units that fire had destroyed.  More than $3.8 million was spent on restoring the property, and occupancy increased to 95 percent, from less than 50 percent.

" Serenity Apartments at Baton Rouge is a perfect example of what is possible in the affordable housing arena if the work is approached with conviction, creativity, tenacity and kindness," said Michael King, vice president of Elevation Financial Group.