PMC Forms AH Partnership With Red Stone

Prudential Mortgage Capital, Newark, N.J., is expanding its affordable housing financing activities through a newly formed affiliate, Red Stone Partners.In partnership with Red Stone, a New York-based affiliate of Prudential Real Estate Investors, PMC will provide developers nationwide with tax-exempt financing, PMC said. PMC president David Twardock said the company has seen "increased demand for tax-exempt bonds" and sees an opportunity to "leverage our overall platform and build on the strength of our originations team." The relationship seeks to combine PMC's senior lending abilities with Red Stone's equity and mezzanine capital lines. Red Stone, which has been capitalized through some undisclosed institutional investors, will focus on the credit enhancement of tax-exempt multifamily bonds to aid the acquisition, refinancing, or construction/rehabilitation of multifamily housing properties. The partnership will offer borrowers nonrecourse financing with up to 95% loan-to-value ratios on single assets of $5 million and up, and on portfolios of up to $350 million. The partnership's products are to be offered through PMC's originations team.