Red Oak Financial, a Michigan-based commercial real estate finance company, funded a loan to Moceri Companies and 400 Monroe Associates for the purchase of the UAW-GM Center for Human Resources in Detroit. The 18-acre, mixed-use campus contains 420,000 square feet of space along the Detroit Riverfront.
The $21.7-million, two-year bridge loan has an 8 percent interest rate, on an interest-only basis. The loan lends itself to participation with insurance companies or other private lenders and will be serviced by Red Oak.
According to the Detroit Riverfront Conservancy, the UAW-GM Center for Human Resources is the national headquarters for the partnership between the United Auto Workers and the General Motors Company. The multi-use campus includes office space, technical training areas, dining, a fitness center, conference center, outdoor terraces, views of the Detroit River and a 900-vehicle underground garage.
“We were attracted to this opportunity in Detroit because it checks all the boxes we seek when funding loans to achieve attractive, risk-adjusted returns,” said Gary Bechtel, Red Oak’s chief executive officer. “That includes a strong sponsor we are confident can elevate this iconic asset to its fullest potential, and a market that is experiencing a transformation through urban revitalization efforts.”
Since 2015, Red Oak has closed loans totaling nearly $200 million in loan volume.
Red Oak Capital Holdings, LLC is a family of commercial real estate finance and investment companies that includes Red Oak Financial LLC, Red Oak Holdings Management LLC, and Red Oak Capital GP LLC.
Red Oak Financial originates, short-term commercial real estate loans for sponsors seeking $1 million to $10 million debt financing. Red Oak Capital is an affiliated investment strategies company that is focused on raising capital through the independent broker-dealers & registered investment advisor channels, family offices, insurance companies, pension funds and private high-net-worth investors. The company sponsors non-traded direct investment products, including Red Oak Capital Fund IV, a $50 million Regulation A+ bond offering.