RED provides bridge strategic capital to allow time to execute on permanent agency execution
Columbus, OH –Red Capital Partners, LLC, the proprietary debt and equity banking arm of RED CAPITAL GROUP, LLC, announced today that it closed a $25 million balance sheet loan for a 199-unit, class A, seniors housing community in Hoover, Alabama, an affluent suburb of Birmingham. The financing, consisting of an initial funding of $22 million with a $3 million earn-out available to the borrower, is anticipated to be refinanced by a Fannie Mae permanent loan.
The Somerby St. Vincent’s One Nineteen was developed by Dominion Partners, LLC and is operated by its affiliated management company, Somerby Senior Living Services, LLC. The community opened in 2009 and serves the independent living, assisting living and memory care segments of the market. The community is strategically located across from the separately owned and managed St. Vincent’s One Nineteen Health and Wellness Center, which offers an array of diagnostic and healthcare services.
“We were very pleased with Red’s competent delivery and execution on this transaction,” states Brian Parker, Chief Financial Officer of Dominion Partners. “The loan structure allows for a capital stack that meets our long term objectives, and we can continue to focus on providing the highest quality of housing and services to our residents.”
“The Somerby transaction exemplifies one of many ways that we continue to use our balance sheet to provide a full spectrum of financing options to fit our client needs,” states Mike Moran, Chairman and CEO, RED CAPITAL GROUP. “Over the past 18 months, we have used our balance sheet capabilities to provide construction financing, as well as bridge to Agency and FHA permanent business. Looking forward, given the dynamics in the markets, the ability to creatively utilize our significant and flexible balance sheet to better fulfill our clients’ needs will be an advantage in the marketplace – for both our clients and RED.”
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About RED CAPITAL GROUP, LLC
(www.redcapitalgroup.com) Recognized for its industry expertise, innovative and comprehensive structures, and consistently high rankings, RED CAPITAL GROUP, LLC has provided over $52 billion of integrated debt and equity capital since 1990 to the multifamily, student and seniors housing, and health care industries through three operating companies. Red Mortgage Capital, LLC is a leading Fannie Mae DUS® and MAP- and LEAN-approved FHA lender with a mortgage servicing portfolio of more than $17.8 billion. Red Capital Markets, LLC (member finra/sipc) is a leader in the distribution of Fannie Mae and Ginnie Mae Project MBS and provides structuring, underwriting, placement and advisory services for tax-exempt and taxable housing and health care bonds. Red Capital Partners, LLC provides proprietary debt and equity solutions and asset management in a range of forms including subordinated gap and bridge loans. RED CAPITAL GROUP, LLC, a subsidiary of ORIX USA Corporation, is headquartered in Columbus, Ohio and employs approximately 187 people across eleven offices nationwide.
About ORIX USA Corporation
ORIX USA Corporation (test.orix.com) is the U.S. subsidiary of ORIX Corporation, a publicly-owned Tokyo-based international financial services company established in 1964. ORIX Corporation is listed on the Tokyo (8591) and New York (NYSE:IX) stock exchanges. ORIX USA Corporation is a diversified corporate lender, finance company, and advisory service provider with more than $6 billion in assets and an extensive portfolio of credit products and advisory services. ORIX USA is headquartered in Dallas, Texas and has approximately 1,400 employees worldwide.
DUS® is a registered trademark of Fannie Mae.
For more information on this transaction, please contact:
James D. Scribner
For more information on RED CAPITAL GROUP, LLC, please contact:
Director of Marketing