Columbus, OH – November 4, 2011 – (RealEstateRama) — Multifamily experts from comprehensive capital provider RED CAPITAL GROUP, LLC’s proprietary lending group closed a $20,000,000 first mortgage interim loan on a recently redeveloped 15-story high rise residential building located in the heart of Center City.
The Commonwealth is a 98-unit multifamily residential tower which also has ground floor retail space. Built in 1902 as the Commonwealth Title and Trust Building, today it is listed on the National Registry of Historic Buildings and is Philadelphia’s newest premier rental residence.
The project is owned by a partnership composed of three Philadelphia-based ownership teams (SSH Real Estate, Silverang Hallowell Development Company and 806 Capital, LLC), each of which is an active owner and developer of commercial real estate. The owners recently completed a redevelopment of the property that includes an Art Deco-inspired transformation of the lobby. The project received its final certificate of occupancy in August 2011 and is leasing at an impressive rate.
The loan provided by Red Capital Partners, LLC (“RCP”) on the property was structured with a competitive rate and has a 12-month term with the option for two extensions. RCP specializes in providing interim bridge and gap financing to RED’s customers. Red Mortgage Capital, LLC is expected to provide the permanent financing.
RED’s lead originator, Matthew P. Napoleon said, “Although many transactions we undertake are complex, this one was particularly so and we were pleased to work with such an experienced and entrepreneurial team of owners to complete it. We also were pleased to deliver as promised on the solution we originally proposed.”
RED Senior Managing Director Charles C. Meyer added, “We are dedicated to maintaining our existing focus on providing capital to the Philadelphia market and its multifamily owners, as witnessed by the financing undertaken for The Commonwealth and under way for The Drake.”
Peter Soens, a key principal for one of the three firms that make up the ownership group commented, “We are very pleased to have completed our recent refinance with Red Capital to replace our construction loan within 12 months. Having 70 out of 98 units leased upon completion of construction enabled our partnership to take advantage of the current low interest rates and capitalize on our successful leasing campaign. In a very competitive lending environment, Red Capital rose to the forefront based on their favorable terms and ability to provide superior execution to close the loan in a timely manner.”
Operating nationwide since its inception in 1990, RED CAPITAL GROUP, LLC is recognized for its industry expertise, innovative and comprehensive structures, and consistently high lender rankings, including having closed more FHA Multifamily & Healthcare loans during HUD FY-2010 than any other lender and remaining active as a top Fannie Mae DUS® lender for both multifamily and seniors. Red Mortgage Capital, LLC’s nationwide agency platform includes Fannie Mae DUS, Freddie Mac Seller/Servicer for Seniors, and FHA MAP and FHA LEAN lending for multifamily, seniors housing and health care properties.
RED CAPITAL GROUP, LLC is committed to being the nation’s premier provider of capital across the spectrum of asset classes.
About RED CAPITAL GROUP, LLC
RED CAPITAL GROUP, through three operating companies, provides integrated debt and equity capital to the multifamily, student and seniors housing, and health care industries. Red Mortgage Capital, LLC is: a leading Fannie Mae DUS® lender for both Multifamily and Seniors Housing; the nation’s most active FHA Multifamily/Seniors lender (MAP- and LEAN-Approved); a national Freddie Mac Seniors Housing Seller/Servicer; an active financier of Critical Access, community and rural hospitals; and services more than $14 billion of income property mortgage loans. Red Capital Markets, LLC (MEMBER FINRA/SIPC) is a leader in: the trading and distribution of Fannie Mae and GNMA Project MBS; the underwriting of developer-driven multifamily housing bonds; and also is remarketing agent for $1.5 billion in variable rate demand tax-exempt and taxable housing and health care bonds. Red Capital Partners, LLC delivers proprietary debt and equity to the multifamily and health care industries and provides asset management services for RED’s proprietary debt and equity investments.
RED CAPITAL GROUP is headquartered in Columbus, Ohio, employs more than 200 and maintains nine offices nationwide. Since 1990, the bankers of RED CAPITAL GROUP have provided over $52 billion in taxable and tax-exempt first mortgage debt, mezzanine level capital and equity to multifamily, seniors housing, health care, and other real estate properties nationwide. RED CAPITAL GROUP is a subsidiary of ORIX USA Corporation.