COLUMBUS, Ohio--(BUSINESS WIRE)--
The Joint Venture ensures affordability of 556 apartments in 12 rural Texas communities
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.
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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 their 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.
ABOUT RED MORTGAGE CAPITAL
Red Mortgage Capital is a division of ORIX Real Estate Capital, LLC, a Fannie Mae DUS®, MAP- and Lean-approved FHA, and Freddie Mac small balance lender. ORIX Real Estate Capital Holdings, LLC is headquartered in Columbus, OH and is a wholly owned subsidiary of ORIX Corporation USA. ORIX Real Estate Capital has 16 offices nationwide and approximately 330 employees. Securities, Investment Banking and Advisory Services are provided through OREC Securities, LLC, member FINRA/SIPC.
ABOUT RELATED COMPANIES:
Related Companies is the most prominent privately-owned real estate firm in the United States. Formed over 40 years ago, Related is a fully-integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, marketing and sales. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, South Florida, Washington, D.C., Abu Dhabi and London, and boasts a team of over 3,500 professionals. With over $50 billion in assets owned or under development including the 28-acre Hudson Yards neighborhood development on Manhattan’s West Side, Related was recently named to Fast Company Magazine’s list of the 50 Most Innovative Companies in the World. For more information about Related, please visit www.related.com.
ABOUT RELATED AFFORDABLE:
Related Affordable is the division of Related Companies that develops, acquires and preserves affordable housing throughout the nation. Affordable housing laid the foundation of Related Companies, and its broad portfolio of award-winning affordable and mixed-income developments demonstrates the company’s continuing ability to create affordable housing opportunities in a variety of geographically, economically and socially diverse neighborhoods. Related owns and operates a portfolio of more than 45,000 affordable and workforce housing units.