RED Small Balance Loan Group Funds $18.5M on a Five Property Portfolio in the Southeast

Colonial House Apartments, Hickory, NC (Photo: Business Wire)

Colonial House Apartments, Hickory, NC (Photo: Business Wire)

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COLUMBUS, Ohio--()--RED Mortgage Capital, LLC, the mortgage banking arm of RED Capital Group LLC, announced that they have funded over $18M to finance a portfolio of five apartment complexes throughout the greater Charlotte, North Carolina area and Augusta, Georgia.

The sponsor, MACC Properties, is an industry leader in the multifamily markets in the greater Southeastern United States. Formed in 2003, the company has built a track record of success in the acquisition, rehab, reposition and management of residential properties, as well as a record of maintaining positive partnership experiences.

The properties financed include:

  • Village Square Apartments, located in Monroe, NC approximately 25 miles southeast of Charlotte.
  • Parkway Apartments, located in Winston Salem, NC
  • Colonial House Apartments located in Hickory, NC approximately 55 miles north of Charlotte.
  • The Meadows at Edgemont – Gastonia, NC approximately 22 miles west of Charlotte.
  • Fairway Village Apartments located in Augusta, Georgia.

To close the portfolio in a timely manner, it required a tremendous amount of teamwork and effort between RED, MACC Properties and the broker. The sponsors have over 15 years of success in owning and managing multifamily properties in the Southeast market.

RED’s nationwide non-recourse small balance multifamily program is designed for loan amounts up to $7.5M and provide aggressive loan to value leverage structures, up to 80%. It provides fixed rates up to 10-years and hybrid ARM products with 20 year terms. More importantly, it is a nationwide market leader in providing highly competitive interest rates. Borrowers are able to maximize their cash-flow with interest only payments and select from a variety of flexible pre-payment options,” explained RED Vice President and Originator Darrin Cook.

“The portfolio was a perfect match for this program. The sponsors were able to receive significant cash out proceeds and obtain below 4.00% fixed interest rate for 10 years. The loans all were non-recourse and provided two years of interest only. The interest only component significantly enhanced their monthly cash-flow and allowed the sponsor to put improvement monies back into the properties,” said Cook.

The deals were brokered by Aaron Prager and Justin Piasecki of Avison Young’s New York Debt, Joint Venture and Structured Capital Group. Both stated, “We are very impressed with RED’s commitment and determination to close the MACC Properties portfolio loan. From the early phases of origination, and at every step of the process, Darrin Cook and his team were professional and diligent in securing the best possible terms, showing flexibility to meet the client’s needs, and working to resolve any issues that arose. Darrin Cook’s attentiveness and persistence in carrying the loans through to closing were unparalleled.

“Darrin Cook delivered on what was originally promised and worked closely with us from application to funding on the recapitalization of the SE Portfolio. Darrin really fought to win our business and never gave up until the portfolio funded,” added the sponsor.

“We were thrilled to work with the sponsor. RED looks forward to building on its relationship and to financing their continued growth,” stated Cook.

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, placement, and advisory services 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.

DUS® is a registered trademark of Fannie Mae

Contacts

RED Capital Group, LLC
Lisalynne Quinn, +1-469-385-1434
Director of Marketing
llquinn@redcapitalgroup.com

Release Summary

RED Mortgage Capital, LLC announced that they have funded over $18M to finance a portfolio of five apartment complexes throughout the greater Charlotte, NC area and Augusta, GA.

Contacts

RED Capital Group, LLC
Lisalynne Quinn, +1-469-385-1434
Director of Marketing
llquinn@redcapitalgroup.com