Red Mortgage Capital provided permanent financing for three assisted living senior communities in Ohio using the Federal Housing Administration’s 232 program and Ginnie Mae’s MBS.
Premier Senior Living, a New York based owner and operator used the loans to pay off interim financing provided by Red Capital Partners.
The three FHA LEAN loans totaling $19,920,000 were funded respectively for The Inn at Fountain Park in Bryan, OH; The Inn at Westbrook in Upper Sandusky, OH; and The Inn at Orchard Park in Bucyrus, OH. The 35-year fully amortizing loans are non-recourse and each carries a highly attractive fixed interest rate for the term of the financing.
“As a non-bank financial institution, we can move quickly on bridge-to-permanent solutions to help clients secure opportunities like this, where we bridge the timing difference until the permanent capital structure can be delivered,” said Christian R. Mauger, senior managing director of principal lending entity Red Capital Partners. “We tailor the structure of each transaction and also make the transition from interim to permanent as streamlined and simple as possible for the owner.”
James F. Sherman, senior managing director of Red Mortgage Capital, LLC’s Senior Living Group and Jason D. Smeck, Director were the lead bankers on the deal.
“RED has a unique capability in that we have capital and specific expertise as a top Agency lender to help buyers execute quickly on acquisitions and take advantage of windows of opportunity,” the company said.
Operators continue to be plagued by delays in financing through FHA and are turning to interim financing by lenders to manage the wait times to get approved.
Written by John Yedinak