JLL Capital Markets announced that it has arranged the $16.333 million construction financing of The Cannery at Railroad Square, a 129-unit affordable housing project located in Santa Rosa, California. This transaction marks the first Freddie Mac non-LIHTC loan completed in conjunction with the state of California’s Housing Accelerator Funds.
JLL worked on behalf of the borrower, The John Stewart Companies and Pacific Housing to secure the 15-year, fixed-rate loan through Freddie Mac Targeted Affordable Housing (TAH). The loan will be serviced by JLL Real Estate Capital, LLC, a Freddie Mac Optigo℠ lender.
“Before he passed away in late 2020, our founder John Stewart and his partners had worked on bringing affordable housing to this lovely site for over 20 years. With the support of JLL and others similarly committed to the project, we are overjoyed to have started construction on John’s legacy project, which will bring 129 affordable and transit-oriented housing units to this fire-ravaged community,” said Jack Gardner, President & CEO of The John Stewart Company.
With an anticipated completion of 2024, The Cannery at Railroad Square will feature 100% affordable units, including seven studio, 48 one-bedroom and 74 two-bedroom floorplans. Units will feature private bathrooms, full kitchens, spacious living areas and closets. Community amenities will include management and services office, a computer lab, a community meeting room, two courtyards, on-site laundry rooms and a shared backyard. 33 units have project-based rental assistance from the Santa Rosa Housing Authority with rents targeted to 30 percent AMI levels.
Located at 3 West Third Street, The Cannery at Railroad Square is adjacent to both the shopping and dining within the Historic Railroad Square District, as well as the SMART Train Station of Santa Rosa Downtown, which allows access to the widely used, 45-mile system of stations throughout the greater Sonoma-Marin area.
The JLL Capital Markets team was led by Senior Director Anson Snyder.
“Freddie Mac is an excellent partner. With interest rates and construction costs rising, Freddie Mac offered loan terms and pricing that make the transaction feasible,” said Snyder. “The Cannery at Railroad Square is an affordable housing community that JLL is proud to be a part of.”
JLL delivers multi-housing investors a full range of solutions through one diverse, integrated platform. The division employs approximately 400 professionals who provide comprehensive investment sales and disposition services with access to thousands of domestic and foreign investors. JLL is also one of the nation’s largest affordable and conventional multi-housing and seniors housing lenders with comprehensive loan underwriting, asset management and loan servicing capabilities. Agency/GSE lending and loan servicing are performed by JLL Real Estate Capital, LLC, a wholly owned indirect subsidiary of Jones Lang LaSalle Incorporated. Loans made or arranged in California are pursuant to a California Financing Law license.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients—whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
Jones Lang LaSalle Americas, Inc. (JLL) is a real estate broker licensed with the California Department of Real Estate, license #01223413.