Red Oak Capital Holdings, LLC, a leading provider of private capital solutions for commercial real estate, has provided a $3.80-million bridge loan for the acquisition and renovation of The Wiltshire Apartments, a 17-unit multifamily community in Washington, DC.
Structured under Red Oak’s Opportunistic Bridge Loan Program, the non-recourse, interest-only financing included $3.10 million for acquisition and $500,000 for capital improvements. The loan features a two-year term and a loan-to-stabilized-value (LTSV) of 73.08%.
The deal was originated by Red Oak Regional Manager Nick Jans, underwritten by Thomas Gorski, and administered by James Myatt. The borrower, East Capitol 819, LLC—an affiliate of Claggion Capital Holdings—is a Northern Virginia-based investor with a decade-long track record of managing and repositioning multifamily properties across the DC metro area, including several developments leased through the Housing Choice Voucher Program.
“While this property came with below-market occupancy at acquisition, the sponsor’s extensive experience operating voucher housing and repositioning historic buildings in the DC area made it a smart bet,” said Nick Jans. “The combination of strong submarket fundamentals, capped supply, and government-backed rental demand points to durable long-term performance.”
Located at 819 East Capitol Street NE, the Wiltshire Apartments is a three-story, 11,700-square-foot building constructed in 1939. The property features a combination of one-, two-, and three-bedroom units, all of which are being leased to tenants under Washington, DC’s Housing Choice Voucher Program. Renovations include updated kitchens and bathrooms, new fixtures, electrical and roofing repairs, hallway flooring, new landscaping, and select interior reconfigurations to add bedrooms.
The building was 41.2% occupied at the time of closing, with the business plan targeting 95% stabilized occupancy following the completion of interior and exterior improvements. Upon stabilization, the sponsor intends to refinance with a long-term agency loan, supported by strong relationships with federal credit unions, regional banks, and agency lenders.
“This is a quintessential Red Oak deal—value-add potential, mission-driven sponsorship, and an infill location in one of the country’s most supply-constrained markets,” said Gary Bechtel, Red Oak’s CEO. “The Housing Choice Voucher Program adds a layer of stability, while the asset itself offers both architectural charm and a long runway for value creation.”
The property sits less than half a mile from the Eastern Market Metrorail Station and is well connected to I-695, I-395, and Maryland Avenue NE. Market fundamentals in the Capitol Hill submarket continue to show resilience: average occupancy remains near 94%, with rent growth averaging 2.5% annually since 2020 and projected to accelerate to 4.0% annually over the next five years.
