News - 2005

Columbus, OH, July 20, 2005— Red Mortgage Capital, Inc., the mortgage banking unit of comprehensive multifamily capital provider RED CAPITAL GROUP, provided a $7,600,000 Fannie Mae DUS™ supplemental second mortgage loan for an apartment building in Oceanside, California.

Riverview Springs Apartments , built in 1993, includes 39 two-story buildings with 358 one-, two- and three-bedroom units. The property is located in the northernmost area of Oceanside, directly south of the Camp Pendleton Marine Base. In addition to being one of the closest multifamily properties to the base, it also is close to the business district and local amenities such as a park, golf course, and bike trails. Common amenities at the property include an outdoor pool, basketball court, fitness center, bike/jogging path that leads to the ocean, and a picnic area with barbecue grills. Twenty percent of the property’s units are income- and rent- restricted to tenant households with incomes at 50% or less of AMI for San Diego County .

Red Mortgage Capital, Inc. structured the $7.6 million fixed rate, Fannie Mae supplemental loan with a fully amortizing 20-year term. The loan is cross-collateralized and cross-defaulted with a $16.3 million first mortgage Fannie Mae credit enhancement that RED provided in December 2001 and which was funded through variable rate tax-exempt bonds issued through the City of Oceanside, California. Red Capital Markets, Inc. (MEMBER FINRA/SIPC) serves as Remarketing Agent for those weekly lower floaters.

The key principal of Riverview Springs’ borrowing entity, James A. Carter,has been a real estate owner/developer for over 40 years in Southern California . He owns and manages Spruce Grove, Inc., a general contracting and development firm he founded in 1964 and which has developed approximately 2,000 apartment units.

Jim Flinn, Director of Red Mortgage Capital, Inc. said, "Fannie Mae’s supplemental loan product is an attractive financial option for borrowers of performing Fannie Mae first mortgage assets to consider. The process is streamlined and the benefits are clear for strong assets such as Riverview Springs - supplemental financing offers the opportunity to leverage additional capital at attractive rates."