Red Oak Capital Holdings, LLC, a leading provider of private capital solutions for commercial real estate, has provided a $5.75-million bridge loan for the Penn Grand Apartments, a 105-unit garden-style community is located in Downtown Oklahoma City.
The two-year, interest-only loan features an all-in rate of 10.50% and an LTSV of 61.36%. Red Oak Regional Manager Nick Jans originated the loan alongside Senior Underwriter Thomas Gorski and CRE Loan Administrator James Myatt. Sean Reilly of Regions Bank brokered the transaction on behalf of the borrower, Gideon Properties, a distressed asset investor with a $60-million, 116-property portfolio.
Originally built in 1972, Penn Grand Apartments sits on 3.7 acres at 3720 S. Pennsylvania Avenue in Southwest Oklahoma City. The 94.2%-occupied property features a mix of one- and two-bedroom units contained in 14 two-story buildings with 109 parking spaces. Since acquiring the community in 2020, the sponsor has spent $5 million to renovate the majority of its units, including upgrades to HVAC, plumbing, electrical systems, siding, roofing, cabinetry, and interiors. The new loan funds the rehabilitation of the remaining 16 fire-damaged units, completing the property’s repositioning.
“The sponsor’s proactive investment in this property and the success of the initial renovation phase demonstrate both commitment and capability,” said Nick Jans. “With continued value-add execution and rental increases already in place, this loan provides the bridge needed to stabilize the asset and transition to long-term financing.”
The borrower intends to raise rents to market levels, averaging a 13.4% increase, which has already been implemented on the updated units without affecting occupancy. Once full renovations are complete and rents stabilized, the borrower plans to refinance the Red Oak loan with permanent financing.
“Penn Grand Apartments exemplifies the kind of resilient, well-located workforce housing that remains in high demand in secondary markets,” said Gary Bechtel, CEO of Red Oak. “Oklahoma City’s stable multifamily fundamentals, coupled with this sponsor’s track record of revitalizing underperforming properties, make this an ideal fit for our bridge lending strategy.”
Southwest Oklahoma City continues to benefit from a young, dense renter population and limited new supply. The metro’s multifamily market has maintained average occupancies above 94% over the past five years, with steady rent growth and favorable long-term outlooks.
