RED Mortgage Capital Provides Financing for Affordable Apartments in Upstate New York
RED’s Unique Financing Structure Provides First USDA Section 538 Loan to Finance Combined New Construction/Rehabilitation Project
PENN YAN, N.Y.–(BUSINESS WIRE)–RED Mortgage Capital (RED), a division of ORIX Real Estate Capital, announced that they have provided a $950,000 United States Department of Agriculture (USDA)-backed loan for the recently completed New York State Homes and Community Renewal’s (HCR) Walnut Hills Apartments project in Penn Yan, New York.
The Walnut Hills project was a $10.7 million rehabilitation of 59 existing apartments and new construction of eight additional apartments. The developer is ODS Management.
Financing included $8.5 million in subsidy from New York State Homes and Community Renewal. In addition to mortgage insurance, USDA provided 40 project-based Section 521 rental subsidies. This is the first time a Section 538 loan is being used for a combined rehab/new construction project.
“It is truly fitting that the country’s first ever combined new construction and rehab project financed by the USDA/RD program be completed by such a distinguished development team,” said David Bonomo, a director at RED. “This will set the standard for Yates County and the State of New York for years to come. We are honored to have been part of such a transformative project.”
“The successful completion of the Walnut Hills renovations is the direct result of the commitment by New York State Homes and Community Renewal and USDA-Rural Development to preserve affordable housing properties,” said Mark Ogiony, president of ODS Management, Inc. “Walnut Hills is a testament to that commitment by providing residents of the community a beautiful and peaceful home to reside in for many years to come. Thank you, NYSHCR, Rural Development and the dedicated team that was involved in making the Walnut Hills renovations a huge success.”
Walnut Hills was originally constructed in 1972 by USDA. The renovation includes new roofs, windows and siding for all buildings, as well as new kitchens, baths, and energy efficiency upgrades. The rental office was expanded to include a community room, patio and playground. All apartments are affordable to households earning at or below 60 percent of the area median income.
RED Mortgage Capital, a division of ORIX Real Estate Capital (OREC), provides targeted financial services in the multifamily and affordable housing markets. OREC is a Fannie Mae DUS®, MAP- and Lean-approved FHA, and Freddie Mac OptigoSM Small Balance lender. The OREC companies have financed approximately $100 billion in total transaction amount and originate $6 billion annually with a servicing portfolio of $25 billion. Headquartered in Columbus, OH, OREC is a wholly owned subsidiary of ORIX Corporation USA. Securities, Investment Banking and Advisory Services are provided through OREC Securities, LLC, member FINRA/SIPC.
Director of Marketing, Communications and Research
ORIX Real Estate Capital
614.857.1592 – office
614.813.6053 – cell