Red Oak Capital Group Launches Red Oak Capital Fund V, A Real Estate Bond Offering

Red Oak Capital Group (“Red Oak“), an investment manager and provider of debt capital solutions for commercial real estate projects, today announced that Red Oak Capital Fund V, LLC (“the Fund”) has been fully qualified by the SEC and is now open to investor subscriptions. 

 

The Fund is a Regulation A+ Tier II bond offering designed to provide investors with a vehicle to access the commercial real estate space. The bonds are securitized by senior secured commercial mortgage notes and are backed by existing income-producing commercial real estate properties in the United States.

 

Like Red Oak Funds II – IV, Fund V has a target size of $50 million and will offer two series with a target yield of at least 7.5%.  Both series also include an additional contingent interest payment at the end of the term, which could increase the yield to investors.

“We combine our extensive sourcing capabilities with proven, disciplined underwriting to capitalize on short-term gaps in the traditional commercial finance markets,” said Chip Cummings, Red Oak’s President. “Our fully integrated fintech platform enables us to rapidly perform credit and collateral scoring and efficiently allocate capital to smaller transactions with a clearly defined exit strategy.”

With over 75 years of relevant collective experience, Red Oak’s team is comprised of real estate operators and investors with expertise in origination, capital allocation, and lending.  The team’s experience, combined with a robust pipeline of senior secured, cash-flowing assets and a commitment to controlled growth, allows Red Oak to construct diversified portfolios for its investors.

“In this historically low interest rate environment, many bank and non-bank lenders are limiting borrowers’ access to funding,” said Gary Bechtel, Red Oak’s Chief Executive Officer. “We are positioned to provide timely access to capital as well as an attractive income-producing investment.”

About Red Oak Capital Group

Red Oak Capital Group, founded in 2015, (and its predecessor, Northwind Financial founded in 1998) originates, underwrites, and services short-term, senior secured stabilization loans on income-producing commercial real estate properties located in major geographic markets. Additional information may be obtained by visiting www.RedOakCapitalGroup.com, or by calling (866) 854-3900.

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