News - 2008
RED Provides Fannie Mae Financing for Strategic Acquisition in Downtown Dallas, Texas
Wilson Building Apartments
Columbus, Ohio, April 15, 2008 — Red Mortgage Capital, Inc., one of the nation’s leading Fannie Mae DUS® lenders and the mortgage banking arm of comprehensive capital provider RED CAPITAL GROUP, recently provided Fannie Mae acquisition financing to Forest City Residential Group, Inc. for a multifamily acquisition in Dallas, Texas.
Wilson Building Apartments was initially developed in 1910 to be one of the preeminent office buildings located in Downtown Dallas. In 1999, to meet the needs of the community and regain its preeminence, the Wilson Building was converted from office space to downtown loft style apartments by an affiliate of Post Properties, with assistance from the City of Dallas. The Property currently offers 143 one- and two-bedroom loft style apartment units and 13,996 sq. ft. of street level retail space.
With their ongoing redevelopment of the Mercantile Building located diagonally across Main Street, Forest City Residential Group viewed the acquisition of the Wilson Building as a strategic opportunity to increase their presence in the Downtown Dallas Market.
In providing the $15,000,000 Fannie Mae DUS Early Rate Lock acquisition financing, which carries a 10-year term and interest only payments, Red Mortgage Capital, Inc. worked through various complexities with all parties to address the ground lease, residency restrictions, and City of Dallas approvals and also met the timing requirements of the seller’s 1031 exchange, as well as the structuring requirements for Forest City Residential Group’s reverse 1031 exchange.
Forest City Residential Group, Inc., a subsidiary of Forest City Enterprises, Inc., owns and/or manages residential properties in 19 states and the District of Columbia, representing nearly 36,000 apartment units in 123 urban and suburban communities, along with four military communities, representing more than 11,900 permanent units.
Mark C. Beisler, Chief Executive Officer of Red Mortgage Capital, Inc., stated, "We are very fortunate to have been able to assist Forest City in this strategic acquisition. Forest City is an important customer of RED CAPITAL and its parent, National City Bank."