News - 2008
080170
Red Mortgage Capital Provides $188 Million Fannie Mae DUS® Financing for Western Rim
Eight Property DMBS Pool and Various Texas Locations
Hiles Mansions Portfolio
Various Texas Locations
Columbus, Ohio, August 12, 2008 — Red Mortgage Capital, Inc., one of the nation’s leading Fannie Mae DUS® lenders and the mortgage banking entity of comprehensive capital provider RED CAPITAL GROUP, recently provided $188,363,000 in Fannie Mae DUS/DMBS financing to Western Rim Property Services.
The high-end properties were developed between 1997 and 2007 by Western Rim. All eight properties are located in Texas, in the metro areas of Dallas/Fort Worth, Houston and San Antonio and are managed by Western Rim.
Red Mortgage Capital, Inc. utilized the $188.363 million DMBS (Discount MBS) structure to provide variable rate financing at a cost significantly below available conventional rate financing, which enabled the borrower to take advantage of the currently low, short term interest environment. DMBS are non-interest bearing Fannie Mae MBS sold to investors at a discount and repaid at par upon maturity. They are typically issued with 3-month maturities and carry no prepayment risk.
Western Rim Property Services and its affiliate, Mansions Custom Homes, currently owns and manages over 7,500 apartment homes in Dallas/Fort Worth, Austin, San Antonio, Houston and Tyler, Texas. Western Rim’s founder, Chairman of the Board and CEO, Marcus Hiles, focuses on developing "dream" communities where everyone wants to live and where residents can receive the most value for their money.
Mr. Hiles said, "I couldn’t have been more pleased with Red Capital’s execution of this transaction. They fulfilled all their promises and were very mindful of our goals. Our relationship with Red goes back over ten years, and the consistency of their customer service and focus on providing smart solutions to capital needs is exceptional."
Kenneth Bowen, Senior Managing Director of Red Mortgage Capital, Inc., said, "We were very grateful for the opportunity to provide this financing, which included refinancing two properties in our Fannie Mae servicing portfolio. It was made easy by Mr. Hiles’s exceptional vision, as he foresaw the decline in short-term interest rates long before they occurred and gave us plenty of time to develop terms and underwrite the real estate, which is of exceptional quality in terms of design, maintenance, and management."
