REVISED: White Oak Capital Holdings Expands Lending Program with Majority Acquisition of Johnson Capital Multifamily LLC, Adding FHA Loan Offerings
Complementary Alliance with Johnson Capital Multifamily Extends Both Lenders’ Capabilities
CHARLOTTE, NC—January 30, 2025—White Oak Capital Holdings, LLC, a national provider of structured financing solutions for commercial real estate, and its affiliated company Red Oak Capital Holdings, have acquired a majority stake in Johnson Capital Multifamily LLC (JCM), a MAP/LEAN-approved lender, expanding its product offerings to include FHA lending programs for multifamily, affordable housing, senior housing and healthcare properties.
“In recent years, Red Oak has increasingly provided bridge-to-HUD loans, enabling borrowers to continue operations during the HUD approval process,” said Gary Bechtel, Chief Executive Officer of Red Oak. “Offering FHA/HUD-insured loans was the logical next step in Red Oak’s strategic growth, and our clients will immediately benefit from this expansion.”
Under the terms of the transaction, JCM will operate as a separate entity alongside Red Oak within the White Oak Capital Holdings umbrella, with both companies leveraging their combined expertise and resources. According to JCM’s Principal and Co-Founder, Jason Pumpelly, multifamily investors often need interim financing for properties they eventually want to finance with long-term FHA/HUD-insured loans.
“The approval process for HUD loans can take an extended period, but borrowers often don’t have that much time to wait,” Pumpelly explained. “A bridge loan from Red Oak allows them to complete acquisitions and/or improvements and cover the span of HUD’s review and approval.”
Red Oak and JCM clients will benefit from access to both companies’ loan platforms. JCM’s team of FHA/HUD-approved professionals will handle all FHA loans, while Red Oak’s team of originators, underwriters, and analysts will continue managing Red Oak bridge loans.
The partnership between Red Oak and JCM is a natural fit, given the need for bridge-to-HUD financing solutions. “This collaboration also enables traditional bridge borrowers to explore FHA/HUD-insured loans, which they might not have previously considered,” added Pumpelly, highlighting the significant overlap with rehabilitation projects. “Red Oak’s bridge programs and the FHA/HUD business will have a symbiotic relationship, with each supporting and enhancing the other.”
Highlighting the benefits to existing and future customers, Bechtel specifically cited the combination of both companies’ expertise and track records. “As a longtime bridge lender, Red Oak is adept at analyzing and underwriting the types pf projects that are suitable for FHA/HUD loans,” he stated. “So while other lenders may offer bridge-to-HUD loans, very few can entertain the kinds of risk profiles that we can.
“Being part of a larger, growing platform allows JCM to retain its independence while also scaling to handle more volume,” Bechtel added. “And as JCM grows, so does Red Oak.”
Bechtel and Pumpelly will continue to spearhead the respective lending operations at Red Oak and Dallas, Texas-based JCM. The combination of FHA/HUD offerings with Red Oak’s creative lending solutions will allow the companies to offer potentially more attractive loan structures than many of their counterparts. The venture will initially focus on the small- to mid-balance sector of the market, which continues to be fragmented and underserved.
While this marks the first formal collaboration between Red Oak and JCM, the roots of their relationship run deep, dating back to the 1990s. During that time, Gary Bechtel, now a leader at Red Oak, worked at Johnson Capital, the finance company founded by JCM’s Guy Johnson. Their professional paths continued to intertwine, with Bechtel and Pumpelly later working together at FINOVA Realty Capital in the late 1990s. This longstanding connection provides a foundation of trust and a shared understanding of the industry that enhances the partnership.
“This partnership feels like a natural evolution of our longstanding relationship,” said Guy Johnson, Founder and Principal of Johnson Capital Multifamily LLC. “Having worked with Red Oak over the years, I know firsthand the caliber of their expertise and strategic thinking. By aligning our platforms, we’re not just combining services—we’re creating a more efficient and effective path for borrowers to secure the financing they need at every stage of their projects.”
The collaboration between Red Oak and JCM is designed to deliver significant benefits to clients. By combining their expertise, the two firms aim to streamline and accelerate loan processing and approval times, reducing the complexity and delays that can often hinder real estate transactions. Clients will also benefit from the partnership’s comprehensive approach, offering a seamless "one-stop-shop" for financing solutions. Red Oak’s expertise in bridge loans complements JCM’s FHA/HUD loan capabilities, ensuring clients receive tailored solutions for every stage of their projects.
These now collectively include:
HUD Mortgages through Johnson Capital Multifamily, encompassing the following FHA/HUD-insured national loan programs:
- Section 221(d)(4) for New Construction/Substantial Rehab of multifamily rental or cooperative housing for moderate-income families, elderly, and the handicapped.
- Section 223(f) for the Acquisition or Refinance of existing multifamily rental housing that is currently in operation, including properties collateralizing conventional mortgages.
- Section 223(a)(7) for the Refinance of existing HUD-financed multifamily and affordable housing.
- Section 241(a): Supplemental Loans for existing multifamily rental housing and healthcare properties that require capital upgrades and already collateralize FHA-insured or HUD-held first mortgages.
Red Oak’s Bridge Loan Programs for Commercial Property, consisting of four distinct fixed-rate products:
- Participating Bridge Loan Program, a higher-leverage program for transitional assets that includes a larger equity component in exchange for a percentage of the project’s value creation at exit.
- Opportunistic Bridge Loan Program, a higher-leverage product with a small equity component for assets with a substantial value-creation element.
- Core-Plus Bridge Loan Program for institutional-quality transitional assets that are not currently cash flowing.
- Core Bridge Loan Program for institutional-quality, cash-flowing assets in transition.
The strategic partnership between Red Oak and Johnson Capital Multifamily LLC sets a new standard for comprehensive financing solutions in the commercial real estate market. By leveraging each firm’s unique strengths and decades of expertise, the collaboration ensures that borrowers have access to innovative, tailored loan programs that address both immediate and long-term financing needs. Together, Red Oak and JCM are well-positioned to meet the evolving demands of multifamily, affordable housing, senior living, and healthcare investors nationwide.
