News - 2006

Columbus, OH, October 19, 2006 — Red Mortgage Capital, Inc., top-ranked Fannie Mae DUS® lender and the mortgage banking unit of comprehensive capital provider RED CAPITAL GROUP, recently financed a 9-property multifamily acquisition portfolio for a newly formed joint venture involving Camden Property Trust (NYSE:CPT) and an affiliate of DRA Advisors LLC. Camden retained a 15% ownership interest in the venture and will continue to serve as the property manager for all nine communities.

Red Mortgage Capital, Inc. structured a $200,000,000 Fannie Mae Credit Facility for the new borrowing entity Joint Venture, and funded an initial $169,015,000 to accommodate the acquisition of these 9 properties located in the Midwest and comprising 3,237 units. Three of the properties were encumbered by existing Fannie Mae credit enhanced, tax-exempt floating-rate bonds, which the Joint Venture assumed, while the remaining properties were structured as taxable, fixed-rate debt. The debt is collateralized by first mortgages on the properties and the mortgages are cross-collateralized and cross-defaulted within the Facility. Amid stiff competition, Red Mortgage Capital, Inc. secured the financing business and was able to accommodate the borrower’s needs and complete the transaction in a little over a month.

Anthony D. Cinquini, Senior Managing Director of Red Capital Markets, Inc. said, "We are pleased to have provided the debt financing for Camden and its JV Partner, DRA Advisors. By utilizing a structured Fannie Mae credit facility comprised of both taxable fixed rate and tax-exempt variable rate debt, we delivered a comprehensive financing solution to the newly formed joint venture."

Alex Jesset, Vice President of Camden Property Trust said, "With so many moving parts in our newly formed joint venture, knowing that Red Capital Group was the point of contact for the taxable debt and tax-exempt bond debt assisted in the success of this transaction."

Adam Breen, Director of Acquisitions for DRA Advisors LLC said, "Red Capital Group’s pricing and execution completed this transaction on time and on budget."

Camden Property Trust is one of the largest multifamily real estate investment trusts (REITs) in the nation. They are engaged in the ownership, development, acquisition, management and disposition of multifamily apartment communities. They own interests in and operate 185 properties containing 63,449 apartment homes across the U.S. and have 14 additional properties under development.

DRA Advisors LLC is a New York-based registered investment advisor specializing in real estate investment management services for institutional and private investors, including pension funds, university endowments, foundations, and insurance companies. Founded in 1986, the firm currently manages over $8 billion in assets, including 500 individual office, retail, multifamily and industrial properties. Additional information about DRA can be found on the company’s website at www.draadvisors.com.