R&F Commercial Debt & Equity Signs New Joint Venture Agreement to Fund Company's Investment and Lending Efforts
WASHINGTON, Dec. 9, 2014 /PRNewswire-USNewswire/ -- R&F Commercial Debt and Equity, a Washington, D.C.-based private equity firm, recently finalized a new Joint Venture (JV) agreement with a New York City hedge fund. The new joint venture, R&F Commercial Ventures L.L.C., was formed in order to provide investment capital to fund the company's investment and lending efforts primarily in the Baltimore-Washington, D.C. markets, and throughout the mid-Atlantic region.
The hedge fund, which manages close to $1 billion, was looking for alternative investment strategies and has identified the returns and asset quality in private lending as a way to efficiently grow its portfolio.
R&F Commercial Debt and Equity, founded in 2011, provides innovative private lending solutions to its clients. Private lending has grown in popularity since the collapse of the banking industry in 2008. It has proven to be a necessity in order to provide capital investments as banks continue to strain under new federal regulations implemented in January of 2014.
Founder and Principal, Steve Ross, said the new joint venture will "allow R&F Commercial to grow its lending portfolio and better serve the high demand needs of active clients and investors."
Mr. Ross added: "Despite the local real estate markets correction to what we view as a 'normal' market, we are still seeing an abundance of opportunity for our clients to purchase distressed real estate and reposition it to sell for a profit. With our new Joint Venture partners, I see no reason why we can't grow our portfolio by $50 million within the next 12-18 months. Our hedge fund partners have an abundance of capital that they would like to invest in what is the safest real estate market in the country."
Ross said the Baltimore-Washington MSA is a tier-one market to invest in mainly because of its highly-educated work force and low unemployment rate due to the high number of federal government-related jobs. However, in recent years, "we have also seen a number of Fortune 500 companies increase their presence in and around the beltway. Everyone wants to work, live and invest here," he said.
He said that despite the improving real estate market, traditional banks are still reluctant to lend on speculative transactions due to new federal regulations implemented in Jan 2014 – expanding the opportunity for private lenders.
Ross said that R&F Commercial Debt and Equity has continued to grow, and in 2014, experienced "our best year yet." This past year, R&F Commercial expanded its investment strategy by lending and providing equity and mezzanine financing to its clients. Private investors in R&F Commercial averaged over 15% return on their capital in 2014.
"We're encouraged that home sales increased over two percent in October, making it the first month to outpace last year's sales numbers. Overall economic factors seem to be improving, contributing to what looks like a rebounding market. With this new infusion of capital, R&F Commercial Debt and Equity is well-positioned to create and invest in more diverse opportunities," said Ross.
"We're excited about our new venture, and look forward to a bright future," said Mr. Ross.
About R&F Commercial Debt and Equity:
R&F Commercial Debt and Equity offers a more creative, less bureaucratic alternative to "traditional" commercial financing. The company assists clients in locating, processing and closing the most competitive capital available in the market place. R&F Commercial Debt and Equity has its own capital sources, investors and reliable institutional partners that lead to responsible lending and investing with rewarding results. R&F specializes in evaluation, acquisition and consulting for residential and commercial assets. This experience and history of successes in commercial lending along the East Coast will expedite the investment process. Learn more at http://randfcommercial.com/.
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SOURCE R&F Commercial Debt and Equity
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