La Terrazza at
Colma Station Apartments
San Mateo County, 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 NEBF and our local developer, JSM Enterprises.
NEBF 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. NEBF 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.
