News - 2007
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2007-014
RED Structures $200 Million DUS Credit Facility and Funds Borrow Up For Five Olympic Investors Loans
Columbus, OH, July 27, 2007 – Red Mortgage Capital, Inc., one of the nation’s leading Fannie Mae DUS® lenders, created a Fannie Mae DUS Credit Facility (the "Facility") for Olympic Investors ("Olympic") to facilitate the acquisition and refinance of multifamily properties intended for Olympic-IDA Fund II, LLC, a private, multifamily investment fund. The fund is a joint venture between Olympic and the Public Employees Retirement System of Idaho.
The Facility provides for funding up to $200 million and achieved Olympic’s timing requirement by being initiated, negotiated, underwritten, and documented by RED and Fannie Mae in less than three months. The Facility is interest-only, allows for the release and substitution of assets, and during the initial two years of the 15 year term, permits additional advances to be sized on a pool basis at 75% LTV and 1.15 times Debt Service Coverage.
In January 2007, $78,575,000 was funded within the Facility to provide for the acquisition of Lemay Lake (282 units), Eastside Village I (242 units), Eastside Village II (249 units) and Bristol Oaks (304 units), as well as, the refinance of bridge financing that had been previously provided by Red for Waterford Court (196 units). Supported by an almost immediate improvement in operations under the new ownership and management, in June 2007, RED funded a borrow up within the Facility increasing the total debt to $83,230,000.
Key Principals Stan J. Harrelson and John A. Goodman of Olympic Investors LLC are headquartered in Seattle, Washington and have ownership interests in over 6,300 apartment units nationwide. Olympic is engaged in the business of acquiring, operating and selling existing apartment properties throughout the U.S. Olympic maintains a strategic relationship with American Management Services, dba Pinnacle. Pinnacle is the largest fee manager of multifamily housing in the country with offices in Seattle, Sacramento, Chicago, Dallas, Orlando and Beijing.
Mark C. Beisler, President and Chief Operating Officer of Red Mortgage Capital, Inc. said, "We have had the pleasure of working with Olympic on more than 40 occasions now and each time underscores why they are at the top of their game. We also deeply appreciate Fannie Mae’s commitment, support and responsiveness, helping us to deliver the Facility in less than 3 months which in turn allowed us to fund the first five loans so quickly."
