News - 2008
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080633
Red Provides $82.2 Million in Fannie Mae DUS® Acquisition Financing for Assisted Living/Alzheimer Pool
Facilities Located in Indiana, Illinois, Iowa and Nebraska
Columbus, Ohio, November 6, 2008 — Red Mortgage Capital, Inc. one of the nation’s top Fannie Mae DUS® seniors housing lenders and the mortgage banking arm of comprehensive capital provider RED CAPITAL GROUP, provided Fannie Mae DUS acquisition financing for fourteen Assisted Living/Alzheimer facilities located throughout Indiana, Illinois, Iowa and Nebraska.
The facilities are fourteen single-story senior housing communities constructed from 1997-2006 and are between one- to three-stories in height. The projects range from 28 to 67 units and provide a full spectrum of care from independent living, assisted living to Alzheimer’s. Typical community amenities include a beauty parlor, dining room, private dining room, numerous lounge/seating areas, game room, exercise room, activity room and outdoor patio or balcony. All units feature a private bath, with emergency pull cords in select locations. All facilities are fully equipped with sprinkler systems.
Red Mortgage Capital, Inc. provided a combined $82,235,000 of cross-collateralized and cross-defaulted Fannie Mae DUS financing for the properties, each carrying a 7-year term and 30-year amortization schedule. Red achieved this structure relatively quickly, in spite of varying obstacles of facility substitutions and market conditions.
The key principal to the transaction, Care Investment Trust, Inc. ("Care"), is a real estate investment and finance company that was formed in 2007 to invest in health care-related real estate and debt and real estate. Bickford Senior Living ("Bickford"), the operator for the prior owning entity, will continue to operate the communities through an operating lease arrangement with Care. Bickford currently operates 40 senior housing communities located throughout six states.
Don Husi, Director of Red Mortgage Capital, Inc. said, "RED appreciates the opportunity to work with Care Investment Trust on this transaction. The deal team worked efficiently to execute a complicated transaction in approximately 30 business days from engagement to closing to achieve Care’s closing deadline."
