News - 2008
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080539
Red Provides $30.5 Million Fannie Mae DUS® DMBS Mortgage Loan for Apartment Property in Happy Valley, Oregon
Monterey Springs Apts
Happy Valley, Oregon
Columbus, Ohio, September 15, 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 a $30,500,000 Fannie Mae DUS® DMBS mortgage loan to Monterey Springs Holdings, LLC for the acquisition and rehabilitation of Monterey Springs Apartments, in Happy Valley, Oregon. The loan was structured with a 7-year, 3-year interest-only, loan term amortized over a 30-year period.
Monterey Springs Apartments, constructed in 1989-90, contains 390 units in 21 three-story buildings. Unit amenities include dishwasher, garbage disposal, refrigerator, wood burning fireplace, full-size washer and dryer and patio/deck with extra storage. Property amenities include a clubhouse with leasing office, a lounge room, kitchenette, business center and fitness room. There is also a single story recreation building with a maintenance shop, indoor pool, indoor spa and sauna. In June of this year, the prior owner completed renovations on 192 of the 390 units. Monterey Springs Holdings will utilize proceeds from this loan to complete renovations on the remaining 198 units.
Monterey Springs Holdings, LLC is owned by affiliated entities of Maxim Real Estate Investments, LLC (based in Denver, Colorado) and Blue Vista Capital Management, LLC (based in Chicago, Illinois).
Greg Adler, Vice President of Blue Vista Capital Management, LLC, stated, "Blue Vista is excited to have completed another transaction with Maxim as well as its first transaction with Red. Monterey Springs is an extremely attractive asset in an excellent location and we intend to continue renovating units at the property to position it as one of the highest quality assets in the Happy Valley submarket. Given all of the turmoil in the credit markets, Red was instrumental in structuring a creative loan and getting it over the finish line. We look forward to working with them again on future transactions."
John K. Powell, Senior Managing Director of Red Mortgage Capital, Inc., said, "Red is very pleased to have worked with Blue Vista, Maxim, and Fannie Mae on this transaction. Together we created an innovative use of Fannie Mae’s DMBS product to provide acquisition and rehab financing for Monterey Springs. By being creative in structuring this transaction, Red has been able to establish a new relationship with both Blue Vista and Maxim."
