RED Closes Seniors Housing Balance Sheet Construction Loan for $20.6 million in Sierra Madre, CA

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RED demonstrates its capacity for balance sheet investments while supporting Class A seniors housing development.

The transaction demonstrates the capabilities of RED’s powerful financing platform and our ability to provide comprehensive debt capital solutions to our seniors housing clientele.

Red Capital Partners, LLC, the proprietary banking arm of RED CAPITAL GROUP, LLC, announced today that it closed a $20.6 million seniors housing balance sheet construction loan. Kensington of Sierra Madre will be a 75 unit, 90 bed assisted living and memory care facility. The two story building will be situated in a premier location in Sierra Madre, California. This will be the first purpose-built assisted living facility constructed in the close-knit and highly desirable Los Angeles-area community in approximately 10 years. The property will be developed, owned and operated by affiliates of Kensington Senior Living, LLC.

The non-recourse construction loan will finance the completion and stabilization of the project over an initial five year term. Following successful lease-up, RED CAPITAL GROUP, LLC anticipates providing a permanent loan refinance through Red Mortgage Capital, LLC, its mortgage banking arm. The transaction illustrates RED’s ability to support its clients with a comprehensive set of debt financial solutions, which can be applied to high quality seniors housing assets throughout their life cycle, from ground-up development through stabilization.    

RED’s expertise and access to balance sheet capital allows us to provide customized capital to seniors housing and long term care projects in the form of first mortgage, subordinated, gap and bridge loans, participating debt, first loss debt and residual debt. Each transaction financed is project specific and as such each negotiated structure is a customized solution.

“Senior housing debt deals remain difficult to source and RED’s solution orientation combined with exceptional terms provided the ideal capital for us.” said Dan Gorham, Finance Partner at Kensington Senior Living.

“RED is proud to partner with Kensington, led by a top tier management team with extensive seniors housing development experience and a modern, progressive approach to providing high quality of care to seniors in thoughtfully designed settings.” said Adam B. Sherman, Managing Director of Red Mortgage Capital, LLC and lead banker on the transaction. “The transaction demonstrates the capabilities of RED’s powerful financing platform and our ability to provide comprehensive debt capital solutions to our seniors housing clientele.”

About RED CAPITAL GROUP, LLC
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 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 (http://www.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.

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Lisalynne Quinn

Adam B. Sherman
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