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2005-044
Red Mortgage Finances First Multifamily Loan Under its Hurricane Katrina Relief Initiative
Fee on Louisiana Financing Contributed to Relief Fund
Columbus, OH, December 21, 2005 – Red Mortgage Capital, Inc., the mortgage lending arm of comprehensive capital provider RED CAPITAL GROUP, recently provided permanent financing for a 136-unit apartment community in Monroe, Louisiana. Red, one of the nation’s top Fannie Mae DUS™ lenders, provided fixed rate, Fannie Mae DUS Cash Early Rate Lock financing in the amount of $5,600,000. To reduce future interest rate risk, the loan was structured with a 30-year fully amortizing term. The transaction was the first to qualify for a contribution by Red to its Katrina Relief Fund.
The Pinnacle Apartments offers one-, two-, and three-bedroom units and is located approximately six miles east of the Monroe Central Business District. The property is the newest in the Monroe apartment market, and experienced strong demand when it began leasing in late 2004. Property amenities include an exercise facility and outdoor pool, while each unit offers unique touches like granite counter tops, high speed internet and cable services included in the rent.
Katrina Relief Fund: In response to the devastation left by Hurricane Katrina last summer and to help provide financing in the region, Red Mortgage Capital, Inc. announced early last fall that when engaged on eligible transactions before June 30, 2006, the firm would waive its mortgage origination fee for non-profit sponsors and make a contribution to a Hurricane Katrina Relief Fund in an amount equal to its mortgage origination fee in the case of for-profit borrowers. Eligible properties include multifamily housing, seniors housing and small and rural hospitals in Alabama, Louisiana, Mississippi and other significantly impacted areas, that qualify for FHA Mortgage Insurance or Fannie Mae DUS financing. In the case of The Pinnacle Apartments transaction, Red has contributed $37,333 to its Katrina Relief Fund. The Fund is administered by The Columbus Foundation.
William E. Roberts, Chairman and CEO of RED CAPITAL GROUP said, "Red has a history of and corporate commitment to supporting good causes. Our Katrina Relief Fund is certainly a good cause. We want to make a difference and be of help, to the extent we can."
Richard Lawch, Senior Vice President of Fannie Mae Multifamily Lending & Investment added, "Fannie Mae salutes Red for creatively supporting victims of the hurricane. We are reminded this holiday season that many living in the Gulf Coast still need decent, permanent housing, and Red’s contributions will offer relief."
Douglas F. Kridler, President and CEO of The Columbus Foundation commented, "The best investments have not just one, but two bottom lines. Red Capital has once again found a creative way to be a market leader and to strengthen its community at the same time. The Columbus Foundation is proud to be their philanthropic partner."
