RED Mortgage Capital, a division of ORIX Real Estate Capital LLC, recently closed a $22 million portfolio with a joint venture between Related Affordable, a division of Related Companies, and the Texas Housing Foundation (THF). The funding will enable Related to substantially rehabilitate 14 properties located in 12 rural Texas communities, preserving the affordability of 556 housing units.
The loans were made using the USDA Rural Development program. All of the properties had existing USDA 515 debt outstanding, which, pursuant to USDA 538 program guidelines, was restructured as part of this long-term preservation initiative.
“Related Affordable has preserved tens of thousands of affordable housing units across the country and has never taken a single unit to market rate. This is a promise we will once again make to our community partners in Texas,” said Matthew Finkle, president at Related Affordable. “Related takes great pride in building neighborhoods, and it is because of partners like the Texas Housing Foundation and RED that we are able to provide long-term affordable housing to those who need it most.”
RED and Lancaster Pollard, both owned by ORIX Corporation USA, recently merged, combining the expertise and experience of both companies. Multifamily transactions are currently being executed under the dba of RED Mortgage Capital.
Related selected RED based on its distinguished track record of underwriting, funding and servicing USDA RD loans. RED Mortgage Capital is one of the top five lenders in the RD program.
“Coordinating the complexity of closing of 14 properties into one portfolio was a true team effort,” said David Bonomo, director at RED. “We are proud to be Related’s partner as they expand their affordable presence into the state of Texas.”
“As a very active USDA, Fannie Mae and FHA affordable housing lender, RED Capital provides a comprehensive menu of affordable and workforce housing financing options nationwide. It was our pleasure to work with Related Affordable on this Texas portfolio,” said Trent Brooks, president of RED Mortgage Capital.
The portfolio includes properties in the following communities throughout Texas, some with populations below 2,000: Albany, Bastrop, Baytown, Burkburnett, Castroville, Electra, Elgin, Evant, Hondo, Lampasas, Beeville, Pflugerville and Round Rock.