COLUMBUS, OH - Red Mortgage Capital, LLC provided permanent financing for three assisted living senior communities in north-central Ohio utilizing FHA Section 232/223(f) mortgage insurance and Ginnie Mae Mortgage Backed Securities (“GNMA MBS”). The FHA insured loans paid off interim financing that related entity Red Capital Partners, LLC had provided to facilitate acquisition of the properties by New York City-based Premier Senior Living, LLC (“Premier”), a privately-owned owner/operator of seniors housing.
Three FHA LEAN loans totaling $19,920,000 were funded respectively for The Inn at Fountain Park in Bryan, OH; The Inn at Westbrook in Upper Sandusky, OH; and The Inn at Orchard Park in Bucyrus, OH. The 35-year fully amortizing loans are non-recourse and each carries a highly attractive fixed interest rate for the term of the financing.
The Ohio loans are the first to close in a pipeline of transactions nationwide where RED is providing experienced owners with proprietary capital on an interim basis and arranging the permanent Agency financing.
For the Premier transactions, RED’s ability to provide proprietary capital and efficiently arrange non-recourse, long term financing was essential to meeting the owner’s needs, as there was a limited timeframe in which to execute the acquisition. Although the owner originally sought permanent acquisition financing, when it became apparent that such financing would not be available in the required timeframe, Red Capital Partners, LLC (“RCP”) stepped in to bridge the timing gap and provided acquisition capital while the permanent solution was being secured. The interim bridge loan subsequently was paid off via the FHA 232/223(f) insured loans underwritten and processed by Red Mortgage Capital, LLC.
Christian R. Mauger, Senior Managing Director of principal lending entity Red Capital Partners, LLC said, “As a non-bank financial institution, we can move quickly on bridge-to-permanent solutions to help clients secure opportunities like this, where we bridge the timing difference until the permanent capital structure can be delivered. We tailor the structure of each transaction and also make the transition from interim to permanent as streamlined and simple as possible for the owner.”
The permanent financing of the Premier projects also marks the completion of RCP’s first interim loans made since it previously had suspended activities under a commercial bank parent entity. A sale from that entity in mid-2010 allowed RCP to re-launch its principal lending activities for multifamily and seniors housing properties. Since RCP resumed providing bridge-to-permanent solutions in the past year, it has made eight interim loans totaling more than $80 million.
James F. Sherman, Senior Managing Director of Red Mortgage Capital, LLC’s Senior Living Group and Jason D. Smeck, Director and lead banker on the FHA permanent financings added, “RED has a unique capability in that we have capital and specific expertise as a top Agency lender to help buyers execute quickly on acquisitions and take advantage of windows of opportunity. It was a privilege to work with Premier Senior Living to help them secure these excellent additions for their growing portfolio.”
Operating nationwide since its inception in 1990, RED CAPITAL GROUP, LLC is recognized for its industry expertise, innovative and comprehensive structures, and consistently high lender rankings. Red Mortgage Capital, LLC is the nation’s most active FHA Multifamily/Healthcare lender (HUD FY2010), a top Fannie Mae DUS lender for multifamily and seniors and a national Freddie Mac Seniors Housing Seller/Servicer. Red Mortgage Capital, LLC also services nearly $14.5 billion in commercial multifamily and senior living loans.