News - 2011
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SEN-080111 08.10.11
RED Structures Refinances on Three Midwest Seniors Housing Communities
$13,717,500 of FHA Loans Replace Prior Bond Financings
Red Mortgage Capital, LLC, the mortgage banking arm of comprehensive capital provider, RED CAPITAL GROUP and the nation’s most active FHA MAP/LEAN Lender, is pleased to announce recent loan refinances for a trio of seniors housing communities in Indiana. Three separate loan applications were processed to secure non-recourse FHA insured financing in the amounts of $2,252,500 for Home Place, a 60-unit age-restricted community located in Indianapolis; $3,815,000 for Sanders Glen, a 111-unit licensed assisted living community located in Westfield; and $7,650,000 for Morning Breeze, an 18-unit independent living/30-unit licensed assisted living/48-unit skilled nursing facility located in Greensburg.
The financings were completed for American Eagle LifeCare Corporation (“American Eagle”), a 501(c)(3) non-profit corporation organized and operating exclusively for public charitable purposes including acquiring, owning, maintaining and operating nursing homes, hospitals, assisted living, senior living and related facilities providing health care and other services to the elderly and infirm.
American Eagle originally had acquired the three communities in 2005 using tax-exempt and taxable bond proceeds totaling $13,855,000 and subordinate tax-exempt bonds in the amount of $3,195,000. As a result of the recent refinancing, the prior bonds were paid off and replaced by the long term FHA debt. Sanders Glen and Morning Breeze were financed through the FHA LEAN program utilizing Section 232/223(f) mortgage insurance. Home Place was financed through the HUD Indianapolis office using FHA’s Section 223(f) mortgage insurance program. All three applications were processed individually and closed simultaneously so that new loan proceeds could pay off the cross-collateralized bond mortgage that had been in place.
Scott Kellman, CEO of American Eagle Lifecare Corporation stated, “American Eagle greatly values its relationship with Red Capital. This very complex transaction was successfully completed with unparalleled professionalism by Red. Three separate applications needed to be synchronized to close simultaneously to repay our existing bond issue. Don Husi and the entire Red Capital team managed this process seamlessly to provide American Eagle with sub-4.5% thirty year financing on the properties.”
Don Husi, Managing Director of Red Mortgage Capital, LLC who led the refinancing said, “It was a pleasure working again with American Eagle, this being our third transaction to date, to refinance the existing high rate senior and subordinate bonds for these properties. American Eagle is an outstanding non-profit owner and operator and the FHA transactions allowed them to lock in long term debt at a much lower rate than they were currently paying in connection with the bonds. The financings also provided additional funds for repairs and reserves to ensure the properties remain financially viable over the term of the new loans.”
Operating nationwide since its inception in 1990, RED CAPITAL GROUP, LLC is often recognized for its industry expertise, innovative and comprehensive structures, and consistently high lender rankings, such as having closed more FHA Multifamily & Healthcare loans during HUD FY-2010 than any other lender and also having been the nation’s top Fannie Mae DUS lender for both multifamily and seniors. Red Mortgage Capital, LLC’s national Freddie Mac Seller/Servicer for Seniors designation, announced April 2011, rounds out the agency platform while structuring equity and subordinate debt investments for senior living further complements the firm’s capabilities.
RED CAPITAL GROUP, LLC is committed to being the nation’s premier provider of capital across the spectrum of asset classes.
For more information, contact:
RED CAPITAL GROUP
Linda L. Mackov,
Senior Managing Director
(614) 857-1404
llmackov@redcapitalgroup.com
For more information on this transaction,
please contact:
Red Capital Markets, LLC
Donald L. Husi, Managing Director
Nashville, TN
(615) 377-3397
dlhusi@redcapitalgroup.com
