The firm will use the financing to acquire multifamily properties in New Jersey
Red Mortgage Capital has announced closing a $60 million, 18-property portfolio in New Jersey through the Freddie Mac OptigoSM Small Balance Loan program.
The mortgage lender said the financing was for the acquisition of multifamily properties, including 481 units of affordable housing in one the most densely populated areas in the US.
The Freddie Mac Optigo SBL program provides an option for multifamily-backed loans nationwide ranging from $1 million to $7.5 million. Red Mortgage’s SBL team has organized the closing of 18 individual loans, enabling better pricing and reduced closing costs.
“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 Brad Domenico, partner at Progress Capital, who took part in negotiating the transaction.
Red Mortgage has closed 11 small-balance loan portfolios amounting to over $200 million in loan proceeds across 75 properties in the past year.
“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, director of small-balance loan originations at Red Capital Group. “This focus on customer experience has allowed Red to establish itself as a preeminent capital provider in the small balance space.”
