Columbus, OH Sept 26, 2017 – RED Mortgage Capital, LLC, the mortgage banking arm of RED Capital Group LLC, announced that they have closed the refinance of a $9.47M portfolio of five apartment complexes throughout the greater Los Angeles, CA area.
The ownership group of the five properties will use the refinanced loan proceeds to begin the process of seismic retrofitting of their structures, which is a new requirement for select properties in Los Angeles County. Being a pro-active management team, the client contacted RED to start the refinance process immediately, in an effort get the seismic retrofit repairs started before the city planner’s office was flooded with engineering permit requests. The newly renovated units are upgraded with new kitchen & bath cabinets, granite countertops, new kitchen appliances (built-in dishwasher, microwave oven and stack washer and dryer), as well as other cosmetic updates.
The properties financed include:
- Normandie Apartments, Los Angeles, CA
- Curson Apartments, West Hollywood, CA
- Lexington Apartments, West Hollywood, CA
- South Kansas Apartments, Santa Monica, CA
- North Kansas Apartments, Santa Monica, CA
Closing the portfolio in a timely manner required a tremendous amount of teamwork and a well-coordinated effort between RED, the ownership group and EPIC Commercial, who sourced the loan request for the client to RED.
“ RED, through its Freddie Mac Small Balance Loan license, provides nationwide non-recourse small balance loans in amounts up to $7.5M and provides 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 at all leverage levels. Borrowers are able to maximize their cash-flow with interest only payments and select from a variety of flexible pre-payment options,” explained RED Managing Director, Donald Frankman.
“The portfolio was a perfect match for the Freddie Mac Small Balance Program, especially since we were able to provide the client access to their existing equity at a very low interest rate cost. We are happy to be working with this ownership group and look forward to growing the business relationship on future transactions,” said Frankman.
The deals were brokered by EPIC Commercial.