Redwood Living Inc. and RED Mortgage Capital, the proprietary debt and equity banking arm of comprehensive capital provider RED Capital Group LLC (RED), are once again celebrating a milestone in their relationship by surpassing $700M in total financing.
The milestone comes on the heels of the two companies’ largest transaction to date – an $18.1M refinance utilizing Fannie Mae’s Green Building Certification Program for a 132-unit Redwood Neighborhood in Macomb Township, Michigan.
This new Redwood Neighborhood, like most of the Redwood portfolio, is a class A, multifamily apartment community of single-story, two-bedroom, two-bath homes with open floor plans and attached garages. Redwood Neighborhoods feel like traditional single-family home neighborhoods – a hallmark of the company since its first development in the early 2000s.
RED has had a long and productive relationship with Redwood, providing optimum solutions by utilizing a variety of loan programs including FHA, Fannie Mae, CMBS, Freddie Mac and Balance Sheet loans, as well as placing loans at other funding sources.
“Celebrating mutual successes never grows old,” stated Andy Warnock, Managing Director for RED. “It doesn’t seem that long ago that RED was visiting Redwood in their corporate office of three employees (2008). Today, Redwood is outgrowing their office space as their geographic footprint and management portfolio continues to swell alongside its investment in human capital.”
The longstanding partnership has also continued to grow and thrive. In 2009, RED closed three loans with Redwood totaling $12.2M. In 2017, the volume of loans closed was $223.1M across 24 loans. To date in 2018, transactions total $130.9M. Since the partnership began, RED has worked with Redwood to finance $715.8M, representing more than 5,500 apartment units.
David Conwill, Co-President of Redwood Living, is impressed at the pace of lending volume in recent years. “In late 2016, we surpassed our 50th financing with RED for a total of $340M in new debt. A short two years later, we have now surpassed $700M comprised of 88 unique transactions. Effectively managing this effort is a testament to the tremendous teams and synergies in place at both firms.”
Redwood, one of the nation’s largest developers of single-story apartment homes, currently manages over 10,000 units across the Midwest and into the Carolinas. RED is a Fannie Mae DUS® lender, Freddie Mac SBL Seller Servicer and the No. 1 producer of FHA-insured mortgages by loan count of total closings in HUD FY15, FY16 and FY17.