News - 2008
2009 | 2008 | 2007 | 2006 | 2005
2005-038
Red Mortgage Capital Finances Two Red CMBS Multifamily Property Pools
More than $172 Million in Loan Proceeds Generated
Columbus, OH, November 30, 2005 – Red Mortgage Capital, Inc., the mortgage banking entity of comprehensive capital provider RED CAPITAL GROUP, recently structured more than $172,000,000 in CMBS permanent mortgage financing for two separate pools of multifamily properties.
The second set of loans, which very recently closed, was the larger of the two being securitized. For that set, Red Mortgage Capital, Inc. structured a $108,500,000 pool for 15 multifamily properties located primarily in the Midwest. The average loan size of the pool was $7.2 million, with the largest property obtaining loan proceeds of more than $21 million. Collectively the properties accounted for over 3,850 units. The non-recourse loans carry a term of 10 years, with 5 years interest only.
Approximately 45 days prior to completing financing on the 15-property pool, Red Mortgage Capital, Inc. completed structuring for another pool of 7 multifamily properties primarily located in the Southwest, for a total loan amount of more than $63,500,000. That late-3Q financing comprised more than 1,940 multifamily units. Those loans also had a non-recourse, partial interest only structure. Red Mortgage Capital, Inc., which services a loan portfolio of over $7 Billion, will serve as primary servicer for both pools of refinanced multifamily properties.
Charles C. Meyer, Vice President, Red Mortgage Capital, Inc. said, "Implementing a CMBS execution with aggressive pricing was a good financing option for both pools, and the initial interest-only structure, which is not always easily obtained, will provide the properties with cash flow savings in the early years of the loans. Another desirable feature of Red's CMBS approach is that we can handle the underwriting and servicing responsibilities. Our ability to provide those critical points of contact differentiates our product from others available in the market today and will help us expand our reach to other asset classes of commercial real estate."
