RED Closes Two Fannie Mae Structured ARM Loans Totaling $73.8 Million for Seniors Housing

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Red Mortgage Capital, LLC Seniors Housing

This is another example of RED and Fannie Mae collaborating to provide a wonderful, long-term capital solution that met the borrower’s business plan.

Red Mortgage Capital, LLC, the mortgage banking arm of RED CAPITAL GROUP, LLC, announced today that it closed two Fannie Mae cross-collateralized Structured Adjustable Rate Mortgage (“SARM”) loans totaling $73.8 million for an affiliate of HJ Sims Investments, LLC. The loans are priced at 253 basis points over LIBOR. The loans have 10-year terms with two years interest only.

RED presented the borrower with various financing options and worked closely with Fannie Mae to deliver the necessary pricing and loan terms for RED and Fannie Mae to win the business in a competitive bid. The permanent financing allowed the borrower to optimize its capital structure by reducing the cost of its existing debt and equity.

The high-profile Colorado Class A senior housing communities consist of 316 independent, assisted and memory care units opened in 2008, just prior to the onset of the recession and experienced a protracted lease-up and stabilization. After reaching stabilization, both properties have demonstrated a consistently strong operating performance with very high occupancy levels and extensive waiting lists. The properties are operated by Leisure Care. Leisure Care has achieved among the highest rents in the market due to the unparalleled property and unit amenities offered.

Located in Fort Collins and Colorado Springs, about one hour north and south of Denver, the communities are centrally located in their respective submarkets with excellent access to medical services and neighborhood amenities.

“We are very pleased with RED’s execution on this transaction. Their ability to structure loans with specific terms, including an extended interest-only period, allowed for a capital structure that was essential for us to achieve our long-term goals,” stated R. Jeffrey Sands, Managing Director, HJ Sims Investments. “This financing will ensure our ability to provide quality housing and care to current and future residents.”

“This is another example of RED and Fannie Mae collaborating to provide a wonderful, long-term capital solution that met the borrower’s business plan,” stated Kathryn Burton Gray, Senior Managing Director, RED. “The originator, James Scribner, Managing Director for RED, creatively worked through several challenges with HJ Sims to deliver the necessary pricing and loan terms. We are very pleased to have HJ Sims as a client; they are a great organization.”

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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 ( 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

James D. Scribner

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