News - 2007
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Red Mortgage Capital Provides $14 Million Acquisition Financing for Steven D. Bell & Company
Structured, Underwritten and Closed in 18 Days
The Gardens at Lake Spivey
Jonesboro, Georgia
Columbus, OH, September 11, 2007 – Red Mortgage Capital, Inc., the mortgage lending arm of comprehensive capital provider RED CAPITAL GROUP, structured first mortgage interim acquisition and renovation financing for an age-restricted seniors apartment community which will be converted into an independent and assisted living facility.
Steven D. Bell & Company, in a joint venture with an institutional equity partner, is acquiring The Gardens at Lake Spivey and converting it from a 200-unit age-restricted seniors apartment project to an independent and assisted living facility. Once conversion is completed, The Gardens at Lake Spivey will contain 150 independent living units and 50 assisted living beds. The property, built in 2005 and situated on 11.56 acres, is located approximately 15 miles south of downtown Atlanta. Common amenities include arts and crafts studio, central courtyard with swimming pool, clubhouse, 3 elevators, exterior storage units, fitness center, game and activity room, hair salon, laundry facility, library and billiards room, 30-seat movie theater, outdoor fireplace, picnic area, grills, and a walking trail.
Red Mortgage Capital, Inc. structured, underwrote and closed the financing in 18 days in order to enable the client to meet the purchase contract deadline. $10,400,000 was initially disbursed, with the remaining $3,600,000 distributed monthly to fund the conversion and improvements on this property.
Nickolay N. Bochilo, Acquisitions Manager of Steven D. Bell & Company said "We are pleased to continue the growth of our senior living portfolio and the operating platform. While repositioning of assets could be challenging and risky, the fundamentals of the senior living sector and the Atlanta market should positively support our strategy execution. The flawless performance by Red Mortgage Capital in providing attractive financing was impressive, particularly in light of the turmoil in the credit markets. Steven D. Bell & Company is proud to have partnered with Red on this transaction and we look forward to doing more business together in the future."
Christian R. Mauger, Managing Director of Red Mortgage Capital, Inc. said "We are pleased to be working with Steven D. Bell and Company and look forward to expanding our relationship as the company further increases its presence in both the seniors housing and multifamily sectors. With the coordinated and intense efforts of both RED and Steven D. Bell & Company personnel, we were able to close the transaction on a very aggressive schedule. It is a true pleasure to be working with such professional, knowledgeable people."
