Red Oak Capital Holdings Provides $4.5M for Oregon Conversion

Red Oak Capital Holdings, LLC has provided a $4.55 million loan for Eagle Crest Village Apartments, a 98-unit residential community in North Bend, Oregon. The funds will be used to retire the existing debt and complete renovations on the garden apartment property.

Located on eight acres at 3959 Sheridan Avenue, Eagle Crest Village Apartments was built in 1957 as a residential care facility. The sponsor has invested over $2.3 million to convert the asset into a multifamily, and intends to exit the loan via a conventional refinance and manage the community in the long term. “While this may be an unconventional conversion, this sponsor has 40 years of expertise in acquiring, renovating, and selling real estate assets,” stated Dave Christensen, Red Oak’s Regional Manager-West.

The non-recourse loan carries an 11% interest rate and a three-year term. Christensen originated the loan, which was underwritten and administered by Hermann Wendorff, Senior CRE Underwriter, and Jesus Martinez, Senior CRE Loan Administrator. Peter Breen, Director of Production for LendingStandard, brought the transaction to Red Oak on behalf of the borrower, a real estate investor.