GRAND RAPIDS, Mich. (STL.News) – Red Oak Capital Group (RED OAK) announced today that its latest $50,000,000 bond offering has been fully qualified by the SEC, and is now open and receiving subscriptions.
“We are pleased to bring another fixed-income bond product to the investment market,” said Chip Cummings, CEO of Red Oak.
Similar to Fund III which reached capacity in December after only 2 months, the offering is a Regulation A+ Tier II bond, but expanded to offer different options for investors. Similar to their previous products, this offering includes additional contingent interest payment at term which increases the yield to the investor.
“We purposely held this Offering back a few months to strengthen and build our internal operations,” added Cummings. “This allows us to more effectively and judiciously deploy the capital and maintain the quality within the asset portfolios.”
The issued bonds are securitized by senior secured commercial mortgage notes, backed by existing income producing commercial real estate properties. As an institutional quality short-term commercial real estate lender, Red Oak Capital, combines their vast network of lending partners with proprietary automated underwriting and origination technology to take advantage of short-term gaps in the traditional commercial finance markets. They specialize in lending on smaller commercial real estate transactions with defined exit strategies. Strong growth and demand for redevelopment capital combined with Red Oak’s reputation for being an active lender, has led to rapid expansion for Red Oak.
“By combining our automated underwriting engine with manual processes conducted by experts with 30+ years of institutional quality underwriting experience, we are able to source and underwrite a vast amount of high-quality commercial loan opportunities,” adds Joe Elias, Chief Technology Officer. “This pipeline of senior secured, cash flowing commercial real estate assets, combined with our commitment to controlled growth allows us to maintain the quality of the portfolios, while meeting the demand for quality fixed income products.”
Established by the SEC in 2015 under the JOBS Act, the Regulation A+ Tier II offerings allows companies to sell up to $50 million in securities within a 12-month period. In addition, it requires regular financial filings and annual audited financial statements, which creates greater transparency for investors.
Crescent Securities in Dallas serves as the managing broker dealer for the offering. The national firm of UHY is the auditing firm, and the securities firm of Kaplan Voekler Cunningham & Frank acts as counsel.
Complete offering details can be found at the SEC’s website at: https://www.sec.gov
About Red Oak Capital Group
Red Oak Capital Group is a technology enabled, private equity firm specializing in direct lending within the commercial real estate industry. It is comprised of seasoned investment and technology professionals with robust sourcing capabilities and vast institutional underwriting experience. Powered by their proprietary ROCX automated underwriting and origination platform, Red Oak efficiently develops a highly targeted pipeline of secured commercial real estate loan products. Additional information may be obtained by visiting www.RedOakCapitalGroup.com, or by calling (866) 854-3900.