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Red Oak Debuts Hybrid Fund for Commercial Real Estate Debt

Red Oak Capital Fund VI, LLC, a $75-million Regulation A+, Tier II General Solicitation hybrid offering sponsored by Grand Rapids, MI-based Red Oak Capital Holdings, has been qualified by the SEC and is open to investors. The fund is bifurcated into two distinct products, a bond offering and a preferred units offering, that will focus on U.S. senior-secured, small-balance sheet real estate debt investments in primary and secondary markets.   

This is a first-of-its-kind vehicle for Red Oak. “Banking regulations and a changing market have limited borrower access to traditional sources of capital,” said Red Oak’s CEO, Gary Bechtel. “This, combined with high levels of fragmentation and operating inefficiencies in the small-balance bridge lending industry, presents a significant opportunity for our investment strategy.”  

As with prior vehicles, Red Oak will primarily use Fund VI’s proceeds to originate and make short-term, first-lien loans and acquire other senior-secured real estate debt investments backed by income-producing real estate. 


Inside The Story

Red Oak Capital Holdings

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).