News - 2010
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CTP-100261 12.21.10
RED Resumes Principal Lending Activity Providing $19 Million in Bridge Financing for Three Ohio Seniors Communities
Red Capital Advisors, LLC (“RCA”), the merchant banking arm of comprehensive capital provider, RED CAPITAL GROUP (“RED”), recently provided $19,200,000 in bridge financing to Premier Senior Living, LLC, for the acquisition of three assisted living and memory care communities in North-Central Ohio including: 93-unit The Inn at Fountain Park in Bryan, Ohio; 40-unit The Inn at Orchard Park in Bucyrus, Ohio; and 50-unit The Inn at Westbrook in Upper Sandusky, Ohio.
The balance sheet financing provided by RCA facilitated the acquisition of the three properties and will bridge the period from acquisition to delivery of the permanent financing utilizing the FHA LEAN program. The FHA LEAN applications are being processed by affiliate Red Mortgage Capital, LLC, the nation’s most active LEAN lender since inception of the program.
The transaction marks RCA’s first after it previously had suspended its bridge, gap and other principal lending activities while it was owned by a commercial bank parent entity. A sale from that entity was completed in May 2010, thereby allowing RED to reposition itself once again as a standalone debt and equity capital provider active in the multifamily and seniors housing arenas.
The Ohio transactions are the first of several transactions in the firm’s pipeline. Michael S. Wood, President of Red Capital Advisors, LLC and the executive responsible for the firm’s principal capital lending activity said, “We’re pleased that RCA was able to facilitate the client’s goal of taking down the acquisition of the properties and bridging the timing difference until a permanent capital structure is delivered with an FHA insured permanent mortgage. As with all of our principal lending and investment activities, this bridge financing was structured and tailored to meet the client’s particular needs. Red provides a comprehensive platform that can offer creative and integrated capital solutions ranging from principal merchant banking to permanent financing options.”
Robert P. Borsody, Esq., key principal for the borrowing entity stated, "We were pleased to work with Red Capital on this bridge financing which presented some unusual obstacles that we worked through with their help. In addition to processing the permanent FHA financing for this portfolio of assisted living properties for Premier Senior Living, we also are working with Red Capital on two assisted living acquisitions in Florida and look forward to working with them in the future since they deliver what they promise."
James F. Sherman, Senior Managing Director in charge of RED’s Seniors Housing department and the originating banker for the transaction added, “It is tremendous that we are in a position to rebuild our balance sheet lending initiative, to better serve our clients and to again meet the needs of the seniors housing industry. Having this capability provides our clients with capital access to be more proactive in managing their business, taking advantage of acquisition opportunities such as these, and to better manage their capital needs.”
