News - 2011
Red Provides $4,100,000 Interim Loan in 30 Days
Acquisition of 224-Unit Multifamily Property Financed
Red Capital Partners, LLC, the principal lending and proprietary capital arm of comprehensive capital provider RED CAPITAL GROUP, LLC, is pleased to announce it recently used its balance sheet to provide a $4,100,000 bridge loan with a 24 month term to Wilkinson Corporation of Yakima, Washington. The loan facilitated the purchase by Wilkinson Properties Fund VIII of a bank-owned property and was structured with options to extend the loan term up to 36 months. The loan most likely will be refinanced utilizing non-recourse FHA Section 223(f) mortgage insurance, a permanent loan option provided by affiliate entity Red Mortgage Capital, LLC, the nation’s highest volume FHA/HUD multifamily and health care lender.
Weatherly Apartments, located approximately ten miles northeast of Atlanta’s central business district, is composed of 16 garden-style, two-story apartment buildings containing 144 one-bedroom and 80 two-bedroom units. The new owner intends to invest approximately $4,000 per unit in renovations and capital improvements and amenity upgrades.
Russell L. Wilkinson, Founder & Chairman of the Board of Wilkinson Corporation said, “We are very excited about the addition of this asset to our portfolio. After completion of the improvements and implementation of a focused management effort, we feel confident that it will produce outstanding results for our investors. We had a short time frame in which to secure this asset. Red not only performed on time, delivering financing in 30 days from engagement to closing, but also delivered on the terms they stated at the outset. The combination of their knowledge, work ethic, and commitment to growing a relationship is a rarity these days.”
Kimra Holcomb, Executive Vice President of Wilkinson Asset Management, the multifamily property management arm of Wilkinson Corporation, added, “After the economic downturn in 2008, we had been watching carefully for signs of recovery in and around Atlanta because historically this area has had strong growth. When we began to see signs of recovery in the first quarter of 2011 with positive job growth, we knew it was an opportunity to make an investment. We thank Red for going above and beyond to help us secure this property and allowing us to capitalize on what we believe to be a great opportunity.”
Wilkinson Corporation, headquartered in Yakima, Washington, is a boutique real estate investment firm representing primarily independent, private equity and joint venture investors. It serves as the parent company to Good Neighbor Care Centers, LLC; Wilkinson Asset Management, LLC; Wilkinson Real Estate, LLC; and Wilkinson Development, LLC.
Jeffrey C. Ringwald, Managing Director of Red Mortgage Capital, LLC and RED’s lead banker who arranged the interim loan and will be involved in delivering a permanent solution said, “It was truly a pleasure working with the Wilkinson team on this acquisition bridge loan. The 30 day closing was a total team effort and we are excited to grow our relationship with Wilkinson as they expand their multifamily portfolio!”
Operating nationwide since its inception in 1990, RED CAPITAL GROUP, LLC is often recognized for its industry expertise, innovative and comprehensive structures, and consistently high lender rankings, such as having closed more FHA Multifamily & Healthcare loans during HUD FY-2010 than any other lender and also having been the nation’s top Fannie Mae DUS lender for both multifamily and seniors.
RED CAPITAL GROUP, LLC is committed to being the nation’s premier provider of capital across the spectrum of asset classes.
For more information, contact:
RED CAPITAL GROUP
William L. Meyer
For more information on this transaction, please contact:
Red Mortgage Capital, LLC
Jeffrey C. Ringwald
Seniors Housing & Health Care