According to Braungart, RCG 1 is specifically designed to accommodate loan requests that require funding for acquisitions, land improvement, new construction, rehab and repositioning projects. Funding is also available for bridge loans, joint ventures, gap equity and mezzanine loans. The fund will consider loan requests in both urban and rural areas.
"This latest fund will in some cases offer higher leverage than typical funding sources for commercial and residential projects," says Braungart, who projects that RCG 1 will close $100 million of loans. "This allows the company to be a lower cost alternative to expensive equity, and in many cases will allow the borrower to deal with one funding source. He adds that the fund will allow RCG to accommodate the lending needs of developers and investors in "an under-served but rapidly growing area of the real estate lending arena."
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