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 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.”
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.