Q1 2020 Earnings Conference Call

May 11 2020 | 8:30 AM ET
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Press Release

Ready Capital Delivers and Closes Over $150 Million Freddie Mac SBL Loans in 17 States and Washington, DC

Company Release - 4/22/2020 10:00 AM ET

NEW YORK, April 22, 2020 (GLOBE NEWSWIRE) -- Ready Capital announces the delivery and closing of Freddie Mac SBL loans for approximately $150 million in 17 states and Washington, DC, between January and March 2020. Ready Capital commenced the second quarter pre- Covid-19 with a strong pipeline of $230 million in Freddie Mac SBL loans and continues to work diligently for its clients to process loans amidst challenges in the current environment. Ready Capital continues to participate actively in the program to provide an important source of liquidity to small balance loan multifamily borrowers.

Various Submarkets in Los Angeles, CA
Refinance of a 17-property, 232-unit, multifamily portfolio in Los Angeles, CA.


Linda Vista Submarket of San Diego, CA
Refinance of a 9-unit, multifamily property located in the Linda Vista Submarket of San Diego, CA.


South Omaha Submarket of Omaha, NE
Refinance of a 29-unit, Class B, multifamily property located in the South Omaha Submarket of Omaha, NE.


Downtown Submarket of Richmond, Virginia
Refinance of a 27-unit, multifamily property located in the Downtown Submarket of Richmond, Virginia.


East Los Angeles/Alhambra/Montebello/Pico Rivera Submarket of Los Angeles, CA
Refinance of an 8-unit, multifamily property located in the East Los Angeles/Alhambra/Montebello/Pico Rivera Submarket of Los Angeles, CA.


Hobbs, NM
Acquisition of an 84-unit, Class B, multifamily property located in Hobbs, NM.


Sloan Lake Submarket of Denver, CO
Recapitalization of a 24-unit, Class B, multifamily property located in the Sloan Lake Submarket of Denver, CO.


Hagerstown, MD
Acquisition of a 34-unit, Class B, multifamily property located in Hagerstown, MD.


Kilgore, TX
Acquisition of a 72-unit, Class B, multifamily property located in Kilgore, TX.


Palm Springs/Palm Desert Submarket of San Bernardino/Riverside
Refinance of a 42-unit, multifamily property located in Palm Springs, CA and the Palm Springs/Palm Desert Submarket of San Bernardino/Riverside.


Northwest Submarket of Cincinnati, OH
Acquisition of a 78-unit, multifamily property located in the Northwest Submarket of Cincinnati, OH.


Harborside Submarket of New Haven, CT
Acquisition of a 32-unit, multifamily property located in the Harborside Submarket of New Haven, CT.


North Seattle/Northgate Submarket of Seattle, WA
Refinance of a 30-unit, Class B, multifamily property located in the North Seattle/Northgate Submarket of Seattle, WA.


Downtown Submarket of Columbus, OH
Acquisition of a 24-unit, Class B, multifamily property located in the Downtown Submarket of Columbus, OH.


Mid-City W Adams Submarket of Los Angeles, CA
Refinance of a 6-unit, multifamily property located in the Mid-City W Adams Submarket of Los Angeles, CA.


Capitol Hill Submarket of Washington, DC
Acquisition of a 13-unit, Class B, multifamily property located in the Capitol Hill Submarket of Washington, DC.


Decatur, AL
Acquisition of a 56-unit, Class B, multifamily property located in Decatur, AL.


Aurora-North Submarket of Aurora, CO
Refinance of a 12-unit, multifamily property located in the Aurora-North Submarket of Aurora, CO.


Hanover County Submarket of Richmond, VA
Acquisition of a 68-unit, multifamily property located in the Hanover County Submarket of Richmond, VA.


Tacoma, WA
Refinance of a 10-unit, Class B, multifamily property located in Tacoma, WA.


Arvada/Broomfield Submarket of Denver, CO
Refinance of an 18-unit, Class B, multifamily property located in the Arvada/Broomfield Submarket of Denver, CO.


Northglenn/Thornton Submarket of Denver, CO
Refinance of a 48-unit, multifamily property located in the Northglenn/Thornton Submarket of Denver, CO.


Renton, WA
Acquisition of a 14-unit, multifamily property located in Renton, WA.


Gaithersburg, MD and the Gaithersburg/Germantown Submarket of Washington, DC
Refinance of a 12-unit, multifamily property located in Gaithersburg, MD and the Gaithersburg/Germantown Submarket of Washington, DC.


City West Submarket of Chicago, IL
Refinance of an 8-unit, multifamily property located in the City West Submarket of Chicago, IL.


Kennesaw/Town Center Submarket of Dallas, GA
Refinance of a 21-unit, Class B, multifamily property located in the Kennesaw/Town Center Submarket of Dallas, GA.


Tacoma, WA
Refinance of a 14-unit, Class B, multifamily property located in Tacoma, WA.


Longview, TX
Acquisition of a 160-unit, multifamily property located in Longview, TX.


East Little Havana Submarket of Miami, FL
Acquisition of a 12-unit, Class B, multifamily property located in the East Little Havana Submarket of Miami, FL.


In March, Ready Capital closed the financing for the refinance of a 17-property multifamily portfolio in Los Angeles, CA. The sponsor has owned the properties in the portfolio for a range of 2-18 years. The collateral consists of garden complexes totaling 232 units, with construction dates ranging from 1928 - 1991 and an average occupancy of above 95%. Most of the properties are in the San Fernando Valley. Ready Capital closed the $48.0 million, non-recourse, hybrid loan that features a 20-year term (7 fixed + 13 floating), 30-year amortization and yield maintenance prepay.

In January, Ready Capital closed the financing for the refinance of a 9-unit, multifamily property located in the Linda Vista Submarket of San Diego, CA. The property has been operating at full occupancy since January 2019 and is in a densely populated, infill neighborhood with convenient access to area amenities, schools, shopping, parks, restaurants and businesses. Ready Capital closed the $1.7 million, non-recourse, fixed-rate loan that features a 7-year term, fully interest only and yield maintenance prepay.

In January, Ready Capital closed the financing for the refinance of a 29-unit, Class B, multifamily property located in the South Omaha Submarket of Omaha, NE. The sponsors acquired the asset in 2010 and have invested significant Cap Ex to update the property including bathroom remodeling, counter top replacement, appliance replacement and flooring replacement, among others. The property has a strong occupancy history with average tenancy of over 3.5 years. Ready Capital closed the $3.6 million, non-recourse, fixed-rate loan that features a 10-year term, 30-year amortization and yield maintenance prepay.

In January, Ready Capital closed the financing for the refinance of a 27-unit, multifamily property located in the Downtown Submarket of Richmond, VA. Since the acquisition in 2017, the sponsor invested $55,000 on in-unit and building exterior renovations. The property has improved value by 10% due to increased rents and an improved market. Ready Capital closed the $1.9 million, non-recourse, fixed-rate loan that features a 10-year term, 30-year amortization and declining (5,5,4,4,3,3,2,2,1,1) prepay.

In January, Ready Capital closed the financing for the refinance of an 8-unit, multifamily property located in the East Los Angeles/Alhambra/Montebello/Pico Rivera Submarket of Los Angeles, CA. The sponsor originally acquired the property in February 2003 and recently invested approximately $90,000 in renovations. Ready Capital closed the $1.5 million, non-recourse, hybrid-rate loan that features a 20-year term (7 fixed + 13 floating), 30-year amortization and yield maintenance prepay.

In February, Ready Capital closed the financing for the acquisition of an 84-unit, Class B, multifamily property located in Hobbs, NM. The property underwent recent renovations that stabilized the asset. Ready Capital closed the $5.1 million, non-recourse, hybrid-rate loan that features a 20-year term (10 fixed + 10 floating), 30-year amortization and yield maintenance prepay.

In February, Ready Capital closed the financing for the recapitalization of a 24-unit, Class B, multifamily property located in the Sloan Lake Submarket of Denver, CO. The property was purchased via an all-cash transaction in December 2019 and the loan proceeds will be used to recapitalize the transaction. Ready Capital closed the $2.7 million, non-recourse, fixed-rate loan that features a 20-year term (5 fixed + 15 floating), 1-year interest only period, 30-year amortization and yield maintenance prepay.

In February, Ready Capital closed the financing for the acquisition of a 34-unit, Class B, multifamily property located in Hagerstown, MD. The property is an affordable housing, cash flowing asset in a growth-oriented suburb northwest of Washington, DC, and Baltimore, MD. Ready Capital closed the $2.1 million, non-recourse, fixed-rate loan that features a 10-year term, 2-year interest only period, 30-year amortization and declining (5,5,4,4,3,3,2,2,1,1) prepay.

In February, Ready Capital closed the financing for the acquisition of a 72-unit, Class B, multifamily property located in Kilgore, TX. The property is currently 94% occupied and has exhibited a stable rent trend. Ready Capital closed the $4.0 million, non-recourse, fixed-rate loan that features a 20-year term (10 fixed + 10 floating), 2-year interest only period, 30-year amortization and yield maintenance prepay.

In February, Ready Capital closed the financing for the refinance of a 42-unit, multifamily property located in Palm Springs, CA and the Palm Springs/Palm Desert Submarket of San Bernardino/Riverside. Additional cash-out funds are being utilized for upgrades at the property. Ready Capital closed the $3.2 million, non-recourse, hybrid-rate loan that features a 20-year term (5 fixed + 15 floating), 30-year amortization and declining (5,4,3,2,1) prepay.

In February, Ready Capital closed the financing for the acquisition of a 78-unit, multifamily property located in the Northwest Submarket of Cincinnati, OH. The property has operated at consistent and stabilized levels for the past two years, maintaining occupancy above 95%. Ready Capital closed the $2.8 million, non-recourse, fixed-rate loan that features a 20-year term (10 fixed + 10 floating), 1-year interest only period, 30-year amortization and yield maintenance prepay.

In February, Ready Capital closed the financing for the acquisition of a 32-unit, multifamily property located in the Harborside Submarket of New Haven, CT. The sponsor currently owns 11 multifamily properties in the Stamford, CT, and New Haven area. Ready Capital closed the $3.1 million, non-recourse, fixed-rate loan that features a 10-year term, 3-year interest only period, 30-year amortization and yield maintenance prepay.

In February, Ready Capital closed the financing for the refinance of a 30-unit, Class B, multifamily property located in the North Seattle/Northgate Submarket of Seattle, WA. Since December 2017, the sponsors have invested significant Cap Ex to update the property, including the renovation of 22 of the 30 units. Ready Capital closed the $3.5 million, non-recourse, hybrid-rate loan that features a 20-year term (10 fixed + 10 floating), 30-year amortization and yield maintenance prepay.

In February, Ready Capital closed the financing for the acquisition of a 24-unit, Class B, multifamily property located in the Downtown Submarket of Columbus, OH. The seller acquired the property as vacant land in September 2013 with improvements constructed in 2015. Ready Capital closed the $2.8 million, non-recourse, fixed-rate loan that features a 10-year term, 30-year amortization and yield maintenance prepay.

In February, Ready Capital closed the financing for the refinance of a 6-unit, multifamily property located in the Mid-City W Adams Submarket of Los Angeles, CA. Since acquisition, the sponsor invested approximately $150,000 to renovate most of the units. Ready Capital closed the $1.7 million, non-recourse, hybrid-rate loan that features a 20-year term (5 fixed + 10 floating), 1-year interest only period, 30-year amortization and yield maintenance prepay.

In February, Ready Capital closed the financing for the acquisition of a 13-unit, Class B, multifamily property located in the Capitol Hill Submarket of Washington, DC. The property is a fully occupied, stable and cash-flowing asset. Ready Capital closed the $3.0 million, non-recourse, hybrid-rate loan that features a 20-year term (10 fixed + 10 floating), 1-year interest only period, 30-year amortization, and yield maintenance prepay.

In February, Ready Capital closed the financing for the acquisition of a 56-unit, Class B, multifamily property located in Decatur, AL. The seller has invested significant capital improvements into the property since 2015, and the property is currently operating at 95% occupancy. Ready Capital closed the $3.0 million, non-recourse, fixed-rate loan that features a 10-year term, 2-year interest only period, 30-year amortization and yield maintenance prepay.

In March, Ready Capital closed the financing for the refinance of a 12-unit, multifamily property located in the Aurora-North Submarket of Aurora, CO. The sponsor purchased the property in 2018 and immediately renovated 10 of the 12 units. Ready Capital closed the $1.3 million, non-recourse, hybrid loan that features a 20-year term (5 fixed + 15 float), 30-year amortization and declining (3,1,0,0,0) prepay.

In March, Ready Capital closed the financing for the acquisition of a 68-unit, multifamily property located in the Hanover County Submarket of Richmond, VA. The property is currently operating at 100% occupancy. Ready Capital closed the $5.8 million, non-recourse, fixed-rate loan that features a 10-year term, 3-year interest only period, 30-year amortization and declining (5,5,4,4,3,3,2,2,1,1) prepay.

In March, Ready Capital closed the financing for the refinance of a 10-unit, Class B, multifamily property located in Tacoma, WA. The property was constructed in 2015 by the sponsor. Ready Capital closed the $2.1 million, non-recourse, hybrid-rate loan that features a 20-year term (7 fixed + 13 floating), 30-year amortization and yield maintenance prepay.

In March, Ready Capital closed the financing for the refinance of an 18-unit, Class B, multifamily property located in the Arvada/Broomfield Submarket of Denver, CO. The sponsor has invested over $100K since acquisition. Ready Capital closed the $1.6 million, non-recourse, hybrid-rate loan that features a 20-year term (5 fixed + 15 floating), 30-year amortization and yield maintenance prepay.

In March, Ready Capital closed the financing for the refinance of a 48-unit, multifamily property located in the Northglenn/Thornton Submarket of Denver, CO. The sponsor has owned the property for over 10 years and has seen value increase through major market growth and renovations. Ready Capital closed the $4.5 million, non-recourse, hybrid loan that features a 20-year term (7 fixed + 13 floating), 30-year amortization and yield maintenance prepay.

In March, Ready Capital closed the financing for the acquisition of a 14-unit, multifamily property located in Renton, WA. The property just completed a $470K rehabilitation and is now stabilizing. Ready Capital closed the $2.4 million, non-recourse, hybrid-rate loan that features a 20-year term (7 fixed + 13 floating), 30-year amortization and yield maintenance prepay.

In March, Ready Capital closed the financing for the refinance of a 12-unit, multifamily property located in Gaithersburg, MD and the Gaithersburg/Germantown Submarket of Washington, DC. The sponsor purchased the property in April 2017 and has since invested significant capital improvements to the property. The property is a stable, affordable housing asset just north of Washington, DC. Ready Capital closed the $1.5 million, non-recourse, fixed-rate loan that features a 10-year term, 30-year amortization and yield maintenance prepay.

In March, Ready Capital closed the financing for the refinance of an 8-unit, multifamily property located in the City West Submarket of Chicago, IL. The property was originally acquired in June 2017 and underwent a complete renovation in 2019 including the development of two retail suites located on the ground level of the complex. Ready Capital closed the $3.5 million, non-recourse, fixed-rate loan that features a 7-year term, 30-year amortization and yield maintenance prepay.

In March, Ready Capital closed the financing for the refinance of a 21-unit, Class B, multifamily property located in the Kennesaw/Town Center Submarket of Dallas, GA. The property was constructed in 1996 and consists of a 2-story building, situated on 1.20-acre site. Ready Capital closed the $1.8 million, non-recourse, fixed-rate loan that features a 10-year term, 30-year amortization and declining (3,3,3,2,2,2,1,1,1,1) prepay.

In March, Ready Capital closed the financing for the refinance of a 14-unit, Class B, multifamily property located in Tacoma, WA. The loan will provide the borrower with liquidity and ability to improve the units. Ready Capital closed the $1.5 million, non-recourse, hybrid-rate loan that features a 20-year term (10 fixed + 10 floating), 30-year amortization and yield maintenance.

In March, Ready Capital closed the financing for the acquisition of a 160-unit, multifamily property located in Longview, TX. The loan sponsor was a repeat Ready Capital and Freddie Mac borrower and located out of state. The sponsor engaged a local property management company with over 15 years of experience and currently managing over 140 multifamily properties across 14 states. Ready Capital closed the $4.8 million, non-recourse, hybrid-rate loan that features a 20-year term (10 fixed + 10 floating), 2-year interest only period, 30-year amortization and yield maintenance.

In March, Ready Capital closed the financing for the acquisition of a 12-unit, Class B, multifamily property located in the East Little Havana Submarket of Miami, FL. The property is currently operating at 100% occupancy. Ready Capital closed the $1.6 million, non-recourse, hybrid-rate loan that features a 20-year term (7 fixed + 13 floating), 30-year amortization and declining (5,5,4,4,3,2,1) prepay.

For more information, contact:
Matt Hillyer, matt.hillyer@readycapital.com
Executive Director – Chief Credit Officer

About Ready Capital:

Ready Capital (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services small- to medium-sized balance commercial loans. Our National Bridge Originations team offers non-recourse financing on transitional, value-add and event-driven commercial and multifamily real estate opportunities. Ready Capital is a direct lender that provides comprehensive financing solutions to real estate owners, investors and small business owners, which generally range in original principal amounts between $2 - $45 million and larger for select assets and portfolios.

This press release contains statements that constitute "forward-looking statements," as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

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Source: Ready Capital