News - 2005

Columbus, OH, November 10, 2005 — Comprehensive capital provider RED CAPITAL GROUP provided acquisition financing on a multifamily property in the state of Washington.

The Overlook at Magnolia is the largest property in the prestigious Magnolia submarket, located approximately 15 minutes north of downtown Seattle. Built in 1975, the 11 four-and five-story buildings house 335 one-, two-, and three-bedroom units and an office/recreation center. A four-bedroom penthouse is also available. Project amenities include a fitness center, community room, jacuzzi and sauna, laundry facilities and storage. Some units boast upscale amenities including skylights, custom accent walls, fireplaces, washer/dryer hookup, and deck views of the Queen Anne neighborhood, Cascade Mountains, Puget Sound and Mt. Rainier.

Red Mortgage Capital, Inc. provided $29,352,600 in Fannie Mae DUS™ acquisition financing that carries a 10-year term and 30-year amortization schedule. Red Capital Advisors, Inc. also provided a ten year co-terminus mezzanine loan in the amount of $8,835,000. The financing structure, intended to maximize acquisition leverage in a low cap rate environment, provided combined property acquisition debt of 80% of the purchase price.

Weidner Investment Services is a Seattle-based real estate, investment, and management company that carries an extensive portfolio of properties primarily in five markets, which includes over 19,000 multifamily units.

Kenneth H. Bowen, MAI, Senior Managing Director of Red Mortgage Capital, Inc. said, "It was a real pleasure working with the professionals at Weidner Investment once again. Overlook at Magnolia is a unique apartment complex located in the hills of the beautiful Magnolia district of Seattle. RED was pleased to provide acquisition financing for this property which included a Fannie Mae DUS first mortgage loan execution from Red Mortgage Capital, Inc. and mezzanine financing from Red Capital Advisors, LLC. Overlook at Magnolia is an excellent addition to the Weidner portfolio of apartment properties."

Ben Katon, Finance - US Operations, Weidner Investment Services, Inc. said, "Once again Red came through for us with excellent service and deal terms. Although the size of the loan and the accompanying mezzanine financing required Fannie Mae’s approval, Red was able to secure such approval expeditiously and was ready to lock our rate before we had all contingencies removed on the purchase contract. Consequently, we were able to catch rates while they were at the low end of their recent range. We really appreciate the hard work and reliable execution provided by Red Mortgage Capital and their partners at Fannie Mae."