Columbus, OH, August 3, 2005 - Red Mortgage Capital, Inc., the mortgage banking affiliate of comprehensive capital provider RED CAPITAL GROUP and the top Fannie Mae DUS™ seniors housing lender for the past two years, recently provided $7,500,000 in Fannie Mae DUS bond credit enhancement for a 7-day variable rate tax-exempt bond issue and provided a $3,545,000 Fannie Mae MBS/DUS fixed-rate loan for a seniors housing community in Contra Costa County, California.
Chateau Pleasant Hill , located in the City of Pleasant Hill, approximately 15 miles from Oakland and the Greater San Francisco Bay area, offers 150 independent-living and assisted-living units and was built in 1986-88. The community’s 3 three-story buildings, single two-story building and one-story common area have common amenities that include main and private dining rooms, living and activity rooms, beauty salons, a general store, exercise room, laundry rooms and an interior courtyard and fountain.
Bonds financing the tax-exempt portion of the financing were issued by the California Statewide Community Development Authority and underwritten by Red Capital Markets, Inc. (MEMBER FINRA/SIPC), who also serves as Remarketing Agent for the weekly, variable rate bonds. The refinancing of Chateau Pleasant Hill was undertaken to refinance a previous issue of fixed-rate, tax-exempt bonds. As a result of the refinancing, the borrower also obtained approximately $750,000 in escrowed funds that will be used for planned property upgrades to both resident apartments and common areas. The property is managed by Intercontinental Services, Inc., a large independent owner and operator of senior housing communities in the San Francisco Bay Area.
Andrew P. Kitts, Director for Red Mortgage Capital, Inc. said, "In addition to the benefit of refinancing with a low tax-exempt variable rate, the additional monies obtained for planned upgrades will further increase the property’s curb and interior appeal and improve its long term viability."
Nicholas A. Hamilton, Director for Red Capital Markets, Inc. added, "The prior bonds were locked out from prepayment. In order to realize the increased cash flow resulting from the refinancing sooner rather than later, the prior bonds were defeased and refunding bonds were issued.
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