Redwood Living and RED Mortgage Capital, the mortgage
banking arm of RED Capital Group, LLC (RED), recently
celebrated a significant milestone in their relationship with the
closing of a $4.17M bridge loan for an eventual FHA 223(f)
refinance on the Lakes of Ridgecrest Phase 4 in North Ridgeville,
Ohio. With this closing, the two firms have now collaborated to
close 50 unique financings for Redwood-owned assets, totaling in
excess of $340M.
This Smart News Release features multimedia.
View the full release here:
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Lakes of Ridgecrest (Photo: Business
Wire)
Redwood, one of the nation’s largest developers of single-story
apartment homes, currently manages over 9,000 units across the
Midwest and into the Carolinas. RED is a Fannie Mae DUS®
lender and the number one producer of FHA insured mortgages by loan
count of total closings in HUD FY15 and FY16.
The lending relationship began in February 2009 with the Fannie
Mae DUS® loan closing of Plum Creek Apartments Phase 1 in
Brunswick, Ohio. The loan, a $3.9M refinance of 54 units, was
Redwood’s first non-CMBS loan closing.
“Redwood was growing rapidly in the early 2000s, but the housing
crisis led to a distressed lending environment,” stated Andy
Warnock, Director of Multifamily Housing for RED. “Redwood
was looking for options outside of Wall Street to provide permanent
financing to their newly constructed projects. We introduced Steve
Kimmelman, CEO of Redwood, and his team to agency lending options
and a deep relationship – and meaningful friendship –
commenced.”
Since that first Fannie Mae DUS® transaction nearly eight years
ago, RED has also arranged financing via multiple
FHA-insured programs, through multiple CMBS securitizations, and
utilizing its proprietary balance sheet. Additionally, RED
has brokered Freddie Mac and Life Company business on behalf of
Redwood.
“We trust RED,” said Kimmelman. “Andy and his team share
a similar mindset and culture to our team at Redwood. Our finance
department often communicates as frequently with RED
employees as they do their own colleagues. That foundation of trust
and the open lines of communication have allowed for tremendous
success by both firms during – and after – one of the most
challenging real estate markets in recent history.”
As Redwood’s portfolio has grown, so too has their need for
permanent financing. RED closed three transactions with
Redwood in 2009 totaling $12.18M. In 2016, RED closed and/or
arranged financing for 14 Redwood assets exceeding $107M in loan
volume.
David Conwill, President of Redwood Living, credits much of
Redwood’s positive growth to its relationship with RED,
stating, “RED Capital Group gets it. They are more than a
lender; they are a trusted advisor who helps manage our pipeline,
strategize new construction and refinance opportunities, attends
internal committee meetings and champions the Redwood brand.
Without the combination of resources between the two firms,
Redwood’s torrid growth would be far less manageable.”
Redwood has grown from 17 properties and 1,536 units in 2009 to
110 properties and 9,032 units today (some of which are currently
under construction), an annualized growth rate of 29%. Redwood has
also expanded their footprint outside of Ohio to include assets in
Michigan, Indiana, Kentucky, Iowa, North Carolina, and South
Carolina, with plans for further expansion.
“We appreciate Redwood’s loyalties,” Warnock said. “Here’s to
the next 50 closings.”
DUS® is a registered trademark of Fannie
Mae
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 $73 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
www.redcapitalgroup.com.
About ORIX USA Corporation
ORIX USA provides 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 600 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
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version on businesswire.com: http://www.businesswire.com/news/home/20170111005119/en/
RED Capital Group, LLCLisalynne Quinn, +1
469-385-1434Director of Marketingllquinn@redcapitalgroup.com
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