COLUMBUS, Ohio--(BUSINESS WIRE)--RED Mortgage Capital, LLC, the mortgage banking arm of RED Capital Group, LLC, announced today that it has closed a $31.75M FHA Section 221(d)(4) loan and RED Capital Markets, LLC, the investment banking arm of RED Capital Group, LLC, underwrote $39.73M of tax-exempt bonds for the rehabilitation of Courtyard at Riverview in Philadelphia, PA. This project is being redeveloped by The Michaels Organization, a long-standing client of RED’s, in partnership with the Philadelphia Housing Authority. The bonds were issued by the Pennsylvania Housing Finance Agency.
The transaction involved careful coordination between bonds, tax credits, sub-debt, FHA and the Housing Authority. It was processed in conformance with the MAP guidelines for properties seeking FHA Section 221(d)(4) mortgage insurance in conjunction with the Rental Assistance Demonstration (RAD) program. The project also included both senior and family units.
This complex transaction represents one of the largest RAD projects in Pennsylvania and a significant deal for RAD transactions across the country.
“We are always happy to work with our long-time partner, The Michaels Organization to revitalize a property,” stated Matt Napoleon, Managing Director for RED. “Because RED provided the Bond Underwriting and is the FHA lender in the deal, we were able to provide continuity to the process that allowed us to close in record time. It was through careful coordination with our team, the Department of Housing and Urban Development (HUD) team and our partners at The Michaels Organization that we could make this a reality in a short time frame.”
Courtyard at Riverview sits on approximately 13 acres and is a 470 unit multifamily complex that includes a 26 story high-rise and 37 two-story townhouse buildings. The complex includes 165 senior unit high rise apartments and 305 modern low-rise homes.
“We are proud to be an integral part of the revitalization of this area in Philadelphia, enhancing the community and improving the lives of our residents,” stated John J. O’Donnell, President of The Michaels Organization. “The RED team did a great job of streamlining the process of this very complex deal to close this RAD loan within record time and help The Michaels Organization achieves its goals.”
The RAD program through HUD seeks to preserve public housing by providing Public Housing Agencies (PHAs) with access to more stable funding to make needed improvements to properties. It allows public housing agencies to leverage public and private debt and equity to reinvest in the public housing stock. To learn more about the RAD program click here.
About RED CAPITAL GROUP, LLC
Recognized for its industry expertise, innovative and comprehensive structures, and consistently high rankings, RED Capital Group, LLC has provided over $74 billion of integrated debt and equity capital since 1990 to the seniors housing and health care, multifamily, affordable, and student housing industries through three operating companies.
RED Mortgage Capital, LLC is a Fannie Mae DUS® and MAP- and Lean-approved FHA lender with a mortgage servicing portfolio exceeding $16 billion. RED Capital Markets, LLC (MEMBER FINRA/SIPC) is active in the distribution of Fannie Mae and Ginnie Mae Project MBS, and provides structuring, underwriting, and placement for tax-exempt and taxable housing and health care bonds.
RED Capital Partners, LLC provides proprietary debt and equity solutions, and asset management in a range of forms, including subordinated gap and bridge loans. RED Capital Group, LLC is a subsidiary of ORIX USA Corporation. For more information on RED Capital Group, LLC, visit our website at: http://www.redcapitalgroup.com
About ORIX USA Corporation
Since 1981, ORIX USA has provided innovative capital solutions that clients need to propel their business to the next level. Based in Dallas, ORIX USA has a team of more than 700 employees spanning nearly 20 offices across the U.S. and Brazil. ORIX USA and its family of companies offer investment capital and asset management services to clients in the corporate, real estate, municipal and energy sectors, while holding $6 billion of assets and managing an additional $29 billion, approximately. Its parent company, ORIX Corporation, is a Tokyo-based, publicly owned international financial services company with operations in 37 countries and regions worldwide. ORIX Corporation is listed on the Tokyo (8591) and New York Stock Exchanges (IX). For more information on ORIX USA, visit www.orix.com.
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