The focus will be on the credit enhancement of tax-exempt multifamily bonds to facilitate the acquisition, refinancing, or construction/rehabilitation of multifamily housing properties. The partnership will offer its products through Prudential Mortgage Capital's nationwide originations team. Red Stone has the capability to offer borrowers non-recourse financing with leverage up to 95% LTV on single assets of $5.0 million or more and portfolios up to $350 million.

Red Stone, managed by John Sokolovic and David Levine, will specialize in flexible and innovative tax-exempt bond financing solutions for multifamily properties.Sokolovic sees the venture well-positioned to compete with players such as Freddie Mac, Fannie Mae, Charter Mac and Minnie Mae. "We can offer a high level of proceeds and more flexibility.""We have been expanding our affordable housing product line to meet the diverse needs of ourcustomers and have seen increased demand for tax-exempt bonds," said David Twardock, president of Prudential Mortgage Capital. "With Red Stone, we see an opportunity to work with an outstanding team to leverage our overall platform and build on the strength of our originations team."

The JV will also provide a full range of financial products and programs to finance 80/20 tax-exempt bond properties and Section 42 low-income housing tax credit properties. In addition, Red Stone will provide letters of credit for variable rate bonds requiring credit enhancement and will finance unenhanced bonds with either fixed rate or floating rate executions.