2006-036

RED Provides $5.5 Million Fannie Mae Supplemental Financing

Melrose on the Bay Apartments
Clearwater, Florida

Columbus, OH, August 8, 2006 – Red Mortgage Capital, Inc., the mortgage banking unit of comprehensive multifamily capital provider RED CAPITAL GROUP, structured Fannie Mae DUS™ supplemental financing on an existing property in Florida.

Melrose on the Bay Apartments, completed in 1986 with significant renovations in 2005, is located in Clearwater and houses 358 one-, two-, and three-bedroom units. Exterior upgrades included painting, landscaping and roof replacement, while replacement of countertops, hardware, lighting, vanities, water heaters, appliances, and A/C units completed the interior upgrades. Amenities include a swimming pool, laundry facility and washer/dryer hook ups. With the recent renovations, Melrose surpasses its closest competition in quality. All of the units are rent-restricted and reserved for qualifying low and moderate income residents.

Red Mortgage Capital, Inc. provided $5,500,700 in Fannie Mae DUS MBS supplemental financing which replaced an existing Red Capital Advisors, LLC mezzanine loan.

The property is owned by three Key Principals that lead the investment group Landmark Residential Properties who carry a portfolio of 27 multifamily properties throughout the Southeast.

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DUS® is a registered trademark of Fannie Mae.