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White Oak Acquires Majority Stake in Johnson Capital Multifamily
White Oak Capital Holdings, LLC, a national provider of structured financing solutions for commercial real estate, and its affiliated company Red Oak Capital Holdings, have acquired a majority stake in Johnson Capital Multifamily LLC (JCM), a MAP/LEAN-approved lender, expanding its product offerings to include FHA lending programs for multifamily, affordable housing, senior housing and healthcare properties.
“In recent years, Red Oak has increasingly provided bridge-to-HUD loans, enabling borrowers to continue operations during the HUD approval process,” said Red Oak CEO Gary Bechtel. “Offering FHA/HUD-insured loans was the logical next step in Red Oak’s strategic growth, and our clients will immediately benefit from this expansion.”
JCM’s FHA/HUD-approved team will handle all FHA loans, while Red Oak’s team of originators, underwriters and analysts will continue managing Red Oak bridge loans.
Jason Pumpelly, principal and co-founder of JPM, said multifamily investors often need interim financing for properties they eventually want to finance with long-term FHA/HUD-insured loans.
“The approval process for HUD loans can take an extended period, but borrowers often don’t have that much time to wait,” he said. “A bridge loan from Red Oak allows them to complete acquisitions and/or improvements and cover the span of HUD’s review and approval.”
- ◦Financing
