Dealmaker: Red Mortgage Capital Provides $39M FHA Loan

Red Mortgage Capital, Columbus, Ohio, provided a $39.3 million Federal Housing Administration refinance for Liberty BLVD, a 266-unit apartment community in Salt Lake City, Utah.

Cowboy Properties, Salt Lake Cities, owns the property.

Liberty BLVD is a mixed-income mid-rise property with a walkable location on downtown Salt Lake City’s east side. It includes 3,900 square feet of commercial space with a fast-casual restaurant and amenities including a lounge, swimming pool, sun deck and roof terrace with city views.

Richard Andrews, Senior Managing Director with Red, led the transaction with Red Senior Advisor David Goodman.

The FHA Section 223(a)(7) loan refinanced existing debt derived from the property’s FHA Section 207/221(d)(4) financing in 2016. The new, lower interest rate will result in meaningful additional cash flow derived from the asset, Red said. Liberty BLVD sits directly adjacent to a light rail stop near the University of Utah. Twenty percent of its units are reserved for households earning 50 percent of area median income or less without relying on Low-Income Housing Tax Credits.