Grand Rapids, MI – January 6, 2021 – Red Oak Financial, a Michigan-based commercial real estate finance company, funded a loan to Moceri Companies and 400 Monroe Associates for the acquisition of the iconic UAW-GM Center for Human Resources in Detroit. The 18-acre, mixed-use campus contains 420,000 square feet of space along the Detroit Riverfront.
Red Oak’s Gary Bechtel said, “We were attracted to this opportunity in Detroit because it checks all the boxes we seek when funding loans to achieve attractive, risk-adjusted returns. That includes a strong sponsor we are confident can elevate this iconic asset to its fullest potential, and a market that is experiencing a transformation through urban revitalization efforts. Red Oak is thrilled to contribute to the continued renaissance of Detroit.”
The campus delivers panoramic views, first-class amenities and is one of the most visible buildings situated along the scenic waterfront. The world-class building is a multi-use campus with office space, technical training areas, full-service dining, a state-of-the-art auditorium, fitness center, conference center, outdoor terraces, views of the Detroit River and a 900-vehicle underground garage.
Moceri’s Dominic J. Moceri said, “The Red Oak leadership was immediately responsive. Within hours they vetted the information given and within a day had visited the collateral. From the start of Sunday evening and by the end of the week, we had an executed term sheet. In less than three weeks, we closed the transaction. Everyone at Red Oak was in lockstep with the sponsor. If we needed clarification on a specific underwriting concern it was cleared up in minutes. Kevin Kennedy teed up the deal, Joe Elias underwrote the deal and smoothed out all the wrinkles, and Dave Christensen christened the deal.”
400 Monroe Associates’ Executive Member Christos Moisides added, “We believe this property will provide a creative, inspiring and safe environment for a single or collaborative user. With panoramic views and first-class amenities, we see this property beyond business, learning or municipal use, but as an entertainment complex to host premium events showcasing the glorious Detroit Riverfront and our International waterway.”
The $21.7-million, two-year bridge loan includes features such as an 8.00% interest rate, on an interest-only basis. The loan lends itself to participation with insurance companies or other private lenders. The loan will be serviced by Red Oak.
Since 2015, Red Oak has closed loans totaling nearly $200 million in loan volume. Bechtel said of the activity, “While lenders continue to adjust to the dislocation being experienced in the market, we believe it is an advantageous time to place loans on the books. As a result of contraction in the traditional lending markets, Red Oak is unearthing opportunities with high quality borrowers involving attractive assets in key markets.”