San Mateo, CA (Aug 29 , 2017) — Redwood Mortgage, a family-owned private lender founded in 1978, announced today closing of an $10.9 million cash-out refinance in the San Francisco Bay Area that paid off the office/retail property’s debt and provided funds for re-entitling and repositioning it to a higher, better use.
“Since our lending sources are funds we manage ourselves, we can perform due diligence and execute a loan without delays, and this transaction was right down our alley,” said Lori Randich, Vice President of Redwood Mortgage. “Most private lenders can come up with $500,000, but not $11 million, and not in a few days. We excel at these mid-size-and-smaller transactions where our experience and speed, or the deal’s special considerations, are important to the borrower.”
While the underwriting was straightforward for Redwood Mortgage given the property’s strong cash flow and excellent market comps, the borrower had a more difficult decision-making process, she explained. The property not only had a fairly low interest rate mortgage but also a prepayment penalty, and the current lender would not accommodate a new loan to fund improvements. Redwood’s loan solved the borrower’s needs, and provided an exit with no prepayment penalty for when the property is ready for construction and longer-term financing.
“The tight commercial lending market for mid-sized and smaller deals — from a few hundred thousand dollars to $10 million — is overshadowed by the halo of big deals in the Bay Area,” said Steve Belleville, Director of Sales and Marketing for Redwood Mortgage. “We’ve been very, very active helping property owners where traditional lenders aren’t able to perform.”
About Redwood Mortgage
Founded in 1978, Redwood Mortgage is a second-generation family-held firm with over 35 years of experience in arranging and funding mortgage loans in California. Based in San Mateo, CA, Redwood Mortgage has arranged nearly $2 billion in loans and currently manages assets of over $275 million. Redwood Mortgage provides tailor-made funding solutions secured by residential investment, multifamily and commercial properties. The firm differentiates itself from traditional lenders with its single level of decision-making, no prepayment penalty on loans, its long-held expertise in commercial loan transactions and its in-house document production and funding. For more information, visit www.redwoodmortgage.com