Participating Mortgage Program

Providing financing solutions

Red Oak is an investor-driven commercial debt fund sponsor that provides short-term financing solutions on commercial real estate assets nationally. Our experienced team of capital markets and lending experts are adept at applying institutional-caliber underwriting standards to small-balance sheet loans.

Participating Mortgage Program

Program Description

Higher-leverage, fixed-rate bridge lending program for commercial real estate assets that have a substantial value-creation component. The loan includes an equity component in exchange for a percentage of the value creation realized in the project at sale or refinance.

Why consider this program?
  • You have a credit tenant in place under a fully executed lease

  • You need equity provided by the lender

  • You're seeking short-term funding to rehabilitate/reposition an asset

  • You need flexible, non-permanent capital to implement an expansion, renovations or conversion on a core commercial real estate asset

Why choose Red Oak?

Red Oak will take on some of the project risk, while your deal is fully, or almost fully, financed.

financing parameters

Poperty Types

Multifamily, Industrial, Retail, Mixed Use, Hospitality, Medical Office, Self Storage, Manufactured Housing        

Loan Amount

$1 Million to $15 Million

Loan Purpose 

Rehabilitation, Expansion, Situational, Conversion

Asset Location

Primary, secondary & select tertiary markets with a minimum population of 50,000 to 100,000

Maximum
LTV/LTC

Up to 75% LTV (based on stabilized value)
Up to 100% LTC (based on transaction underwriting)

Interest Rate

Starting at 10.99% fixed rate (interest only)

Loan Term

1 to 3 Years 

Extensions

Extension Provisions

Origination &
Exit Fees

3 to 5 Points to lender
15% to 25% Participation in value creation (on a case-by-case basis)

Lien Position

Senior Position (secondary financing prohibited)

CapEx Holdack

Full funding with holdback

Recourse

Full/Limited Recourse

Timing to Close

30-45 days from application

Amortization

Interest only

Targeted Returns

18% to 25% unlevered IRRs

Minimum Interest

Minimum interest pre-payment penalty, generally half of initial term

TI/LC/Rehab Facility

Future funding facility toward tenant improvements/leasing commissions and rehab costs

Deposits

Expense deposit adequate to cover third-party reports, legal fees and other customary deal costs

CONTACT US

To request information about our company, please complete the form and someone will be in touch shortly.

HEADQUARTERS
625 Kenmoor Avenue SE, Suite 200
Grand Rapids, MI 49546
616.734.6099
[email protected]