Leading Real Estate Finance Company Expands Footprint in Multifamily Affordable Housing Sector
NEW YORK, August 2, 2021 — Ready Capital Corporation (NYSE: RC) (“Ready Capital”), a multi-strategy real estate finance company that originates, acquires, finances and services commercial loans, today announced its acquisition of Red Stone and its affiliates (“Red Stone”). Red Stone is a real estate finance and investment company that provides innovative financial products and services to the multifamily affordable housing industry. Red Stone’s management team, led by John Sokolovic, and all employees have joined Ready Capital. The acquisition will further diversify Ready Capital’s business and represents its commitment to affordable housing.
“Affordable housing finance presents a significant growth opportunity that will benefit our shareholders by expanding our presence in a sector with low correlation to our other businesses,” said Tom Capasse, Chairman and Chief Executive Officer of Ready Capital. “Moreover, the team at Red Stone has enormous talent and we look forward to building on their success collaboratively in the future.”
“We are very proud of our team’s achievements not only in providing exceptional financial products to our clients but also our team’s dedication and commitment toward the production of much needed affordable housing throughout the United States ” said John Sokolovic, Chairman and Co-Founder of Red Stone. “By joining the team at Ready Capital, we are confident that we can continue to grow and serve our clients, financial partners, and the affordable housing community while adding value for Ready Capital’s shareholders.”
Ready Capital acquired the entities through which Red Stone conducts its affordable housing finance business in exchange for cash and stock as well as the assumption of certain Red Stone guarantees of secured indebtedness.
Ready Capital received financial advice on the transaction from Houlihan Lokey and legal advice from Clifford Chance US LLP. Red Stone received financial advice on the transaction from Riparian Partners and legal advice from Jones Day.
About Ready Capital Corporation
Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services small to medium balance commercial loans. Ready Capital specializes in loans backed by commercial real estate, including agency multifamily, investor and bridge as well as SBA 7(a) business loans. Headquartered in New York, New York, Ready Capital employs over 500 lending professionals nationwide. The company is externally managed and advised by Waterfall Asset Management, LLC. For more information, visit www.readycapital.com.
About Red Stone
Red Stone is a privately-owned real estate finance and investment company that provides innovative financial products and services to the multifamily affordable housing industry throughout the United States. Red Stone focuses on providing acquisition, development period and permanent mortgage capital on properties that are financed utilizing tax-exempt and taxable bonds. Since its founding in 2002, Red Stone has provided in excess of $4.6 billion of mortgage debt and equity capital used to finance 63,032 apartment units in affordable and mixed income rental properties. For more information, visit www.redstoneco.com.
Ready Capital Corporation
SOURCE Ready Capital Corporation