RED Capital Partners provided a $10 million bridge loan with a 36-month term to StoneGate Senior Living for a location in Tyler, TX.
The company said it will allow StoneGate to refinance existing debt and pursue long term financing options for its 125 skilled nursing beds in the future. StoneGate is likely to utilize the Federal Housing Administration’s Section 232 program for long term financing.
“The Red Capital refinance of one of our facilities with a Bridge to HUD execution went very smoothly and professionally,” said Jim Fisher, Senior Vice President and Chief Financial Officer of StoneGate.
Bridge loans have become quite common in the industry as HUD continues to work through its backlog of applications. There is some hope on the horizon, the agency recently announced it was adding staff to help remedy the situation.
Jeffrey C. Ringwald, RED’s lead banker who arranged the deal said “StoneGate represents the best in class when it comes to delivery of care to thousands of residents on an annual basis as well as developing high quality communities in the Southwest.”
In addition to owning the property, an affiliate of StoneGate Senior Living will manage the property. It’s one of 27 communities it manages in Texas, Oklahoma and Missouri.