News - 2008
2006-035
Red Capital Provides $63 Million Acquisition Financing for Washington and Colorado Properties
Columbus, OH, August 8, 2006 — Red Mortgage Capital, Inc. and Red Capital Advisors, LLC, respectively the mortgage banking and proprietary investment and asset management arms of comprehensive capital provider RED CAPITAL GROUP, recently provided acquisition financing on three multifamily properties for Weidner Investment Services, Inc.
Aspen Creek Apartments, built in 1995 andlocated in Kirkland, approximately 10 miles east of downtown Seattle, houses 149 garden and townhouse units in 16 two–story apartment buildings. Project amenities include a heated outdoor spa and pool, party room with kitchen and fireplace, and exercise facility. Unit amenities include a typical kitchen appliance package including a dishwasher and microwave, wood burning fireplace, full size washer and dryer, and a deck or patio with storage area.
Sterling Pointe Apartments, completed in 1984 houses 496 one-, two- and three-bedroom garden style units in 50 buildings. Windtree Apartments, built in 1985, comprises studio, one-, and two-bedroom floor plans in 260 units housed in 34 buildings. Both properties are located in the northern portion of Colorado Springs and unit amenities include a typical kitchen appliance package, while some Windtree units also offer a microwave and full size washer/dryer, and select units at Sterling Pointe offer a stackable washer/dryer. Property amenities include exercise room, outdoor heated swimming pools, and charcoal barbeques.
Red Mortgage Capital, Inc. provided $49,834,700 in Fannie Mae DUS™ acquisition financing for all three properties, which carries a 10-year term and 30-year amortization schedule after a two-year interest-only period. Red Capital Advisors, Inc. also provided a ten year co-terminus mezzanine loan for all three properties in the amount of $13,643,000. The financing structure maximized the acquisition leverage in a low cap rate environment.
Weidner Investment Services is a Seattle-based real estate, investment, and management company that carries an extensive portfolio of properties primarily in four markets, which includes over 15,500 multifamily units.
Kenneth H. Bowen, MAI, Senior Managing Director of Red Mortgage Capital, Inc. said, "We are again very happy to have had the privilege of filling Dean Weidner’s apartment financing needs. Fannie Mae was a great partner in helping us to structure these loans under a bulk delivery facility that provides consistent and highly competitive terms."
Ben Katon, Finance - US Operations, Weidner Investment Services, Inc. said, "These transactions went very smoothly. It was great working with Red Capital again and we look forward to our next transaction."
