RED Mortgage Capital announced the closing of a $60 million, 18 property portfolio in Union City, NJ through the Freddie Mac OptigoSM Small Balance Loan (SBL) program. The financing was for the acquisition of the multifamily properties, which include 481 units of affordable housing. The Union City transaction is one of RED’s largest SBL portfolio financings to date and one of a growing number of portfolios financed by RED in the small balance space. In the past 12 months, RED has closed 11 small balance loan portfolios totaling more than $200 million in loan proceeds across 75 properties.
The Freddie Mac Optigo SBL program is a competitive option for loans ranging from $1 million to $7.5 million secured by multifamily properties across the nation. It brings liquidity and stability to a market sector that was previously geographically fractured and often constrained by sponsor or market exposure limits. In the case of the Union City transaction, RED’s SBL team orchestrated the simultaneous closing of 18 individual loans, allowing for better pricing and reduced closing costs.