San Mateo, CA (December 7, 2016) — Redwood Mortgage, a family-owned private lender founded in 1978, announced today the closing of three loans totaling $4.8 million for commercial and residential investment property in the San Francisco & Los Angeles markets. The transactions exemplify Redwood’s ‘bread and butter’ in providing private money capital for California real estate: resolving maturing loans, facilitating timely specialized purchases and using cash-out refinancing to enable repositioning or other purposes.
“Stories about lending constraints with traditional financial institutions are in the news nearly every day, so we’re seeing more and more mid-to-small investors who have strong properties and balance sheets but who can’t get their financing needs met,” said Steve Belleville, Marketing Director, Redwood Mortgage. “We specialize in private money solutions for loans on investment real estate, where borrowers have a particular need or challenge that typical lenders can’t accommodate.“
The three loans announced today include:
- Redwood arranged a $1.96 million loan to facilitate a refinance, which helped the borrower restructure corporate debt on a commercial warehouse and retail property in the San Francisco East Bay. A cash-out component of the refinance enabled the borrower to pay down a bank unsecured line of credit that was coming due as well. The Redwood loan was structured at 42% loan-to-value (LTV) on a 2-year term, interest only.
- In Los Angeles, Redwood Mortgage closed on a $2.2 million commercial refinance loan on a small retail property at 65% LTV with no prepayment penalty. The borrower needed a rate and term refinance to pay off a maturing seller carry-back financing note. This auto dealership property in west Los Angeles is located in a popular, high-traffic commercial corridor.
- A Silicon Valley Peninsula rental property owner utilized Redwood’s $633,750 purchase loan to acquire a condominium asset in a time-constrained transaction after the buyer’s bank declined to do the loan. Redwood’s loan, at 65% LTV, was based on the borrower’s financial and tax-return information. Once the property is stabilized, the owner plans a refinance to pay off the Redwood Mortgage note.
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