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, New Jersey, 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.