RED Mortgage Capital, the lending arm of ORIX Real Estate Capital, LLC, announces the closing of a $60 million, 18 property portfolio in Union City, N.J. through the Freddie Mac OptigoSM Small Balance Loan program.
The financing was for the acquisition of the multifamily properties, which include 481 units of affordable housing in one of the country’s most densely populated areas. The properties range from eight to 67 units.
John Darrow, Jim Martin and Harris O’Connell with RED’s SBL Team negotiated the portfolio transaction along with Brad Domenico of Progress Capital.
The Union City transaction is one of RED’s largest SBL portfolio financings to date and one of a growing number of portfolios financed by RED in the small balance space. In the past 12 months, RED has closed 11 small balance loan portfolios totaling more than $200 million in loan proceeds across 75 properties.
“RED’s ability to provide competitive terms and certainty of execution on such a large portfolio could not have happened without RED’s highly-efficient, well-engineered approach to Small Balance lending,” said Domenico.
The Freddie Mac Optigo SBL program is a competitive option for loans ranging from $1 million to $7.5 million secured by multifamily properties across the nation. It brings liquidity and stability to a market sector that was previously geographically fractured and often constrained by sponsor or market exposure limits. In the case of the Union City transaction, RED’s SBL team orchestrated the simultaneous closing of 18 individual loans, allowing for better pricing and reduced closing costs.
“Our team continually seeks to improve the customer experience, leveraging technology and decades of industry expertise to provide our clients a seamless execution on every transaction in this high volume space,” said John Darrow of RED. “This focus on customer experience has allowed RED to establish itself as a preeminent capital provider in the small balance space.”
OptigoSM is a registered trademark of Freddie Mac.
About Red Mortgage Capital
Recognized for its industry expertise, innovative and comprehensive structures, and consistently high rankings, RED Mortgage Capital has provided over $78 billion of integrated debt and equity capital since 1990, with a focus on the multifamily and affordable housing industries.
RED Mortgage Capital is a division of ORIX Real Estate Capital, LLC, a Fannie Mae DUS®, MAP- and Lean-approved FHA, and Freddie Mac OptigoSM small balance lender. ORIX Real Estate Capital Holdings, LLC is headquartered in Columbus, OH and is a wholly owned subsidiary of ORIX Corporation USA. ORIX Real Estate Capital has 16 offices nationwide and approximately 330 employees. Securities, Investment Banking and Advisory Services are provided through OREC Securities, LLC, member FINRA/SIPC.
About Progress Capital
Progress Capital is a leading Commercial Mortgage Banking firm specializing in arranging debt for commercial real estate owners and residential developers, with a strong focus on Agency loans. Since 1990, Progress has successfully closed in excess of $40 billion in commercial loans and directly funded over $150 million.