GRAND RAPIDS — After closing on fundraising for one real estate investment fund for bridge loans, Red Oak Capital Group has begun preparing for another.
Red Oak Capital Fund III LLC is “currently in review” for an anticipated release in August. Red Oak plans to use the same structure for Fund III with a $50 million bond offering under federal Regulation A+.
The third fund comes after Red Oak Capital this month closed on the $50 million Red Oak Capital Fund II.
MiBiz previously reported the company had raised $11 million through March.
“The support and response from our broker-dealers and industry partners has been nothing short of amazing,” Chip Cummings, CEO of Red Oak, said in a statement.
The Red Oak Capital funds provide commercial real estate bridge loans through senior lines of credit for deals that do not yet qualify for bank financing.
“Investors today are looking for good regular income, backed by solid assets that are risk adverse. We’ve been fortunate to put together a team that can deliver that. That's why we are excited about the release of Fund III as well,” said Kevin Kennedy, a Red Oak partner and the head of national sales and distribution.
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