Source: RED Capital Partners / #Senior #Housing
HOOVER, AL - Red Capital Partners, LLC, the proprietary debt and equity banking arm of RED CAPITAL GROUP, LLC, announced that it closed a $25 million balance sheet loan for a 199-unit, class A, seniors housing community in Hoover, Alabama, an affluent suburb of Birmingham. The financing, consisting of an initial funding of $22 million with a $3 million earn-out available to the borrower, is anticipated to be refinanced by a Fannie Mae permanent loan.
The Somerby St. Vincent’s One Nineteen was developed by Dominion Partners, LLC and is operated by its affiliated management company, Somerby Senior Living Services, LLC. The community opened in 2009 and serves the independent living, assisting living and memory care segments of the market. The community is strategically located across from the separately owned and managed St. Vincent’s One Nineteen Health and Wellness Center, which offers an array of diagnostic and healthcare services.
“We were very pleased with Red’s competent delivery and execution on this transaction,” states Brian Parker, Chief Financial Officer of Dominion Partners. “The loan structure allows for a capital stack that meets our long term objectives, and we can continue to focus on providing the highest quality of housing and services to our residents.”
“The Somerby transaction exemplifies one of many ways that we continue to use our balance sheet to provide a full spectrum of financing options to fit our client needs,” states Mike Moran, Chairman and CEO, RED CAPITAL GROUP. “Over the past 18 months, we have used our balance sheet capabilities to provide construction financing, as well as bridge to Agency and FHA permanent business. Looking forward, given the dynamics in the markets, the ability to creatively utilize our significant and flexible balance sheet to better fulfill our clients’ needs will be an advantage in the marketplace – for both our clients and RED.”