Red Mortgage Capital LLC, the proprietary debt banking arm of comprehensive capital provider Red Capital Group, LLC (RED), announced the closing of a $52.5 million financing deal with Dalcor Holdings LLC for Vista on Gessner, an 805-unit multifamily development in Houston, TX.
The transaction includes a first lien $50 million Fannie Mae M.TEB (MBS as Tax-Exempt Bond collateral) and a simultaneously executed second lien $2.5 million co-terminus taxable tail. This is RED’s third transaction with Dalcor.
“The Fannie Mae M.TEB financing structure made it viable for Dalcor to acquire and renovate Vista on Gessner along with several other properties in the past couple of years, resulting in the preservation of this important housing stock. It has been a great partnership with Dalcor, Fannie Mae, and Red Capital Group that has resulted in more than 1,500 affordable housing units preserved and renovated in Texas,” said Tracy Peters, Senior Managing Director of Affordable Housing at RED.