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

Release Date : March 29 2017

Columbus, OH, March 30, 2017 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.

Colonial House Apartments
Hickory, NC

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.

Village Square Apartments
Monroe, NC

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.

RED Capital Group is a wholly owned subsidiary of ORIX USA Corp.