News - 2006
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2006-017
RED Provides $31.6 Million Debt and Equity Package for Six Property Acquisition
Columbus, OH, May 9, 2006 –Integrated capital provider RED CAPITAL GROUP, recently provided $31.6 million in debt and equity for Senior Management Concepts, LLC ("SMC") to acquire, complete capital improvements and purchase equipment for six assisted living/independent living properties in the Salt Lake City, Utah area.
Red Mortgage Capital, Inc., a top ten Fannie Mae DUS™ lender nationwide, and the nation’s leading Fannie Mae DUS lender for seniors housing for the past three years, provided $25,008,000 of Fannie Mae DUS financing. Red Capital Advisors, LLC structured and arranged $6,600,000 of preferred equity to complete the acquisition.
The properties, all of which offer transportation to nearby commercial and retail amenities, include:
The Coventry at Cottonwood Heights, built in 2003, offers 88 independent living units. All units have a private patio/balcony, kitchenette, call system and private bath. Property amenities include a resident business center, health club, craft room, library, general store, theatre room, hair salon and outdoor courtyard.
Wentworth at Cottonwood Heights, built in 2004, offers 52 assisted living units. Unit amenities include a call system and kitchenette and property amenities include a residential business center, health club, craft room, library, general store, theatre room, hair salon and outdoor courtyard.
Wentworth at East Mill Creek, opened in 1999, houses 43 assisted living units. Unit amenities include a kitchenette, and call system and common amenities include a therapy room, craft room, library, hair salon, outdoor courtyard with patio and private dining room.
Wentworth at Willow Creek, which includes 53 assisted living units, was completed in 2001 with a dementia wing added in 2003 that houses 11 studios. Each unit is equipped with a kitchenette, and call system. A therapy room, library, hair salon, outdoor courtyard with patio, activity room and general store complete the common amenities of the property.
James F. Sherman, Senior Managing Director of Red Mortgage Capital, Inc. said, "Providing SMC debt and arranging a portion of the funded equity for their acquisition of the Wentworth Portfolio in a short time frame created an exciting and challenging transaction for all involved. Completing multi-facility acquisition financing utilizing Fannie Mae is rather unique in the industry. This transaction is indicative of willingness of both Red Capital and Fannie Mae to be flexible and to accommodate the requirements of its borrowers."
Larry N. Blake, Principal and Owner, Senior Management Concepts, LLC said, "As with previous financing transactions which Red Capital has handled for SMC, they completed their work, meeting the deadlines imposed by the Seller, in a professional and efficient manner. Thanks to Red Capital, having the opportunity to work with the preferred equity provider expands our ability to complete future transactions. The entire transaction team exceeded our expectations."
