SummerHill Apartment Communities (SHAC) has secured USD 123.5 million in construction financing for a multifamily project in the San Francisco Bay Area. Fifth Third Bank and California Bank & Trust (CB&T) provided the developer with a USD 96.5 million senior construction loan for the planned residential development in San Carlos, California.
Additionally, TruAmerica Multifamily has committed USD 27 million in preferred equity to support the development of the six-storey project in San Mateo County, with construction expected to begin shortly. The transaction is noteworthy as it represents the first preferred equity financing from TruAmerica Multifamily since the launch of its structured finance platform last year.
New Strategic Direction and Market Analysis
This new business pillar was established following the arrival of Ash Baraghoush, TruAmerica's Head of Structured Finance. Baraghoush previously spent nearly a decade at Pacific Urban Investors. He stated that this underscores the company's transformation into a residential investment management firm capable of covering the entire capital stack, rather than solely acting as an owner and operator. TruAmerica has built and nurtured new relationships over the past twelve months and more.
The project is located at 11 El Camino Real, approximately 24 miles south of downtown San Francisco, and comprises 251 residential units, of which 38 units are designated as affordable housing. Baraghoush highlighted the favourable conditions in San Carlos as a multifamily market, attributing them to the region's close ties to the San Francisco Bay Area's technology and life sciences industries. He pointed out that the San Carlos submarket boasts an occupancy rate of 97 percent, and the region has experienced double-digit rental growth.
Baraghoush added that the Bay Area as a market has performed above average and is potentially one of the country's best-performing markets at present, driven by the return-to-office trend and the AI boom. The demand for affordable housing for the workforce persists and is one of the most attractive aspects of this investment opportunity.
