Oak Grove Capital Posts Record-Breaking Year

Oak Grove Capital provided $1.7 billion of affordable, market rate and seniors housing financing in 2013, a 16 percent increase over 2012 loan production.
Jeff Patton

Jeff Patton, Managing Director of Oak Grove Capital’s Market Rate Group

St. Paul, Minn.—Oak Grove Capital provided $1.7 billion of affordable, market rate and seniors housing financing in 2013, a 16 percent increase over 2012 loan production and a record-breaking year for the company.

In total, Freddie Mac and FHA financings increased by 150 percent, Fannie Mae business reached $700 million in volume, and affordable housing financing reached $800 million, a 44 percent increase over 2012.

“We were really pleased with the year given all the pressures that all of those investors were under last year,” Jeff Patton, managing director of Oak Grove Capital’s market rate group, tells MHN. “Especially with Freddie, we did a tremendous amount of business with them last year with the affordable housing product line.”

Additionally, the firm expanded its bridge lending capabilities and broadened its reach nationwide as it closed loans in 46 states and serviced a portfolio of approximately $9 billion.

According to Patton, Oak Grove has always had a specialty in multifamily housing and within that area, has continued its focus on affordable housing and seniors housing but in 2014 will be making a push to increase its market rate business.

“We’ve hired some additional production personnel and we’re also transitioning our younger employers internally and moving them into production,” Patton says. “Last year we added Ryan Callahan in Chicago and Ken Bowen in Columbus, two veterans of the industry, to our conventional production team.”

Customer service and executive accessibility are two of the reasons that Oak Grove believes it has been successful. Consistently, 80 percent of Oak Grove’s business comes from returning customers.

“One of the things that make us grow different than most of the firms in our space now is that we are still privately held and the principals are actively involved in our business on a daily basis,” Patton says. “Our clients really appreciate that hands-on approach and being able to speak right to the key decision makers in the firm. Bureaucracy is not part of this firm.”

Since the original founders reacquired the firm in 2009, it has more than doubled its annual production volume. Looking ahead to 2014, the firm is projecting to once again hit record volume numbers.

“2013 was a great year for us by any measure, and we foresee 2014 as being equally successful,” Dave Williams, co-founder and CEO of Oak Grove Capital, says. “Being the largest is not our goal; however, being the best is. Increased volumes are a by-product of the excellent customer service we provide. That fact speaks loudly about the extraordinary levels of service and execution we offer.”