San Mateo, California
La Terrazza at Colma Station blended many complexities to ultimately create a successful rental apartment community located approximately 15 miles south of downtown San Francisco. The project’s attractive design and location immediately adjacent to a BART subway station make the project extremely popular with area renters. Development was capitalized with tax-exempt bond financing, a municipal grant and equity from National and our local developer, JSM Enterprises. National was also able to delay temporarily our equity investment, replacing it with “taxable tail” bond proceeds during construction. This structure further enhanced both our and our partner’s equity returns. Both bond issues were layered with interest rate derivatives in order to mitigate interest rate risk. Further adding to the project’s sophistication was a long term ground lease with the local transit authority. National does not demur from complicated structures, and, as illustrated by the La Terrazza at Colma Station project, we are able to make use of our expertise to augment investment returns.
- 153 rental apartment units
- Market-rate and affordable components
- 86 structured parking spaces
- Equity capital
- Flexible investment structure
- Expertise on complex financing structure