News - 2008

March 18, 2008 — Red Mortgage Capital, Inc., a leading Fannie Mae DUS® provider and the mortgage banking engine of nationwide comprehensive multifamily capital provider RED CAPITAL GROUP, recently financed 25,594 apartment units acquired by a DRA Advisors LLC affiliate which will own 85% of the venture and Stephen D. Bell & Company which will own 15% and manage the communities.

The financing comprises two 7-year fixed rate notes with mid-4% interest rates and a variable rate note, at a 77% loan to value and 130% debt service coverage ratio. UDR, Inc. (NYSE: UDR) engaged Red Mortgage Capital, Inc. to structure and underwrite the financing before it offered the assets for sale thereby allowing RED to lock the interest rate at the time the purchaser was identified. The 86 communities are cross collateralized but the structure permits the new owners to sell some of the assets to new purchasers who can have the ongoing benefit of the mid-4% fixed rate debt.

"I appreciate the professionalism, speed and execution demonstrated by Red Mortgage Capital to facilitate this important transaction for UDR," stated Thomas W. Toomey, President and Chief Executive Officer of UDR. "They put forth a great effort in a short time and worked well with all parties for a successful outcome."

David Goodman, Chairman of Red Mortgage Capital, Inc. remarked, "Red Mortgage Capital, Inc. had the privilege of providing a Fannie Mae financing of this magnitude to important customers and the pleasure of delivering a rate and terms otherwise unavailable. By coming in early before the purchaser was selected, we were able to eliminate the uncertainty of the financing variable and enhance the efficiency of the transaction. Predictability and pricing efficiency drive RED's culture and business."

Anthony D. Cinquini, Senior Managing Director of Red Capital Markets, Inc. (MEMBER FINRA/SIPC) said, "We are pleased to have provided the debt financing for DRA Advisors. By utilizing a structured Fannie Mae credit facility comprised of both taxable fixed rate and variable rate debt, where a portion is assumable, we delivered a comprehensive financing solution to the newly formed joint venture."

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

Phil Weber, Senior Vice President of Multifamily for Fannie Mae said, "Red Mortgage Capital continues to be a leading DUS provider and the DRA Advisors transaction is another example of the value Red Mortgage Capital brings to Fannie Mae’s DUS program."

About DRA Advisors LLC
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 $10 billion in assets including approximately 630 individual office, retail, multifamily and industrial properties. Additional information about DRA can be found on the company’s website at www.draadvisors.com.

About UDR, Inc.
UDR, Inc. (NYSE:UDR), an S&P 400 company, is a leading multifamily real estate investment trust (REIT) with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. As of March 3, 2008, UDR owned 40,226 apartment homes and had 6,184 homes under development and another 738 homes under contract for development in its pre-sale program. For over 30 years, UDR has delivered long-term value to shareholders, the best standard of service to residents, and the highest quality experience for associates. Additional information can be found on the Company’s website at www.udr.com.