RED Mortgage Capital, LLC, the mortgage banking arm of RED Capital Group LLC, announced that they have closed the refinance of a $9.47M portfolio of five apartment complexes throughout the greater Los Angeles, CA area.

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Normandie Apartments Los Angeles, CA (Photo: Business Wire)

The ownership group of the five properties will use the refinanced loan proceeds to begin the process of seismic retrofitting of their structures, which is a new requirement for select properties in Los Angeles County. Being a pro-active management team, the client contacted RED to start the refinance process immediately, in an effort get the seismic retrofit repairs started before the city planner’s office was flooded with engineering permit requests. The newly renovated units are upgraded with new kitchen & bath cabinets, granite countertops, new kitchen appliances (built-in dishwasher, microwave oven and stack washer and dryer), as well as other cosmetic updates.

The properties financed include:

  • Normandie Apartments, Los Angeles, CA
  • Curson Apartments, West Hollywood, CA
  • Lexington Apartments, West Hollywood, CA
  • South Kansas Apartments, Santa Monica, CA
  • North Kansas Apartments, Santa Monica, CA

Closing the portfolio in a timely manner required a tremendous amount of teamwork and a well-coordinated effort between RED, the ownership group and EPIC Commercial, who sourced the loan request for the client to RED.

RED, through its Freddie Mac Small Balance Loan license, provides nationwide non-recourse small balance loans in amounts up to $7.5M and provides aggressive loan to value leverage structures up to 80%. It provides fixed rates up to 10-years and hybrid ARM products with 20 year terms. More importantly, it is a nationwide market leader in providing highly competitive interest rates at all leverage levels. Borrowers are able to maximize their cash-flow with interest only payments and select from a variety of flexible pre-payment options,” explained RED Managing Director, Donald Frankman.

“The portfolio was a perfect match for the Freddie Mac Small Balance Program, especially since we were able to provide the client access to their existing equity at a very low interest rate cost. We are happy to be working with this ownership group and look forward to growing the business relationship on future transactions,” said Frankman.

The deals were brokered by EPIC Commercial.

About RED CAPITAL GROUP, LLC

Recognized for its industry expertise, innovative and comprehensive structures, and consistently high rankings, RED Capital Group, LLC has provided over $74 billion of integrated debt and equity capital since 1990 to the seniors housing and health care, multifamily, affordable, and student housing industries through three operating companies.

RED Mortgage Capital, LLC is a Fannie Mae DUS® and MAP- and Lean-approved FHA lender with a mortgage servicing portfolio exceeding $16 billion. RED Capital Markets, LLC (MEMBER FINRA/SIPC) is active in the distribution of Fannie Mae and Ginnie Mae Project MBS, and provides structuring, underwriting, placement, and advisory services for tax-exempt and taxable housing and health care bonds.

RED Capital Partners, LLC provides proprietary debt and equity solutions, and asset management in a range of forms, including subordinated gap and bridge loans. RED Capital Group, LLC is a subsidiary of ORIX USA Corporation. For more information on RED Capital Group, LLC, visit our website at: http://www.redcapitalgroup.com

About ORIX USA Corporation

Since 1981, ORIX USA has provided innovative capital solutions that clients need to propel their business to the next level. Based in Dallas, ORIX USA has a team of more than 700 employees spanning nearly 20 offices across the U.S. and Brazil. ORIX USA and its family of companies offer investment capital and asset management services to clients in the corporate, real estate, municipal and energy sectors, while holding $6 billion of assets and managing an additional $29 billion, approximately. Its parent company, ORIX Corporation, is a Tokyo-based, publicly owned international financial services company with operations in 37 countries and regions worldwide. ORIX Corporation is listed on the Tokyo (8591) and New York Stock Exchanges (IX). For more information on ORIX USA, visit www.orix.com.

DUS® is a registered trademark of Fannie Mae

RED Capital Group, LLCLisalynne Quinn, +1 469-385-1434Director of Marketingllquinn@redcapitalgroup.com