RED Closes $26.2M Seniors Housing Balance Sheet Construction Loan

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RED partners with top tier sponsor and operator on new seniors housing development.

This transaction demonstrates the progress RED is making in advancing its broader strategy by utilizing our balance sheet capabilities to provide construction and bridge financing to supplement our Agency and FHA permanent loan products.

Red Capital Partners, LLC, the proprietary debt and equity banking arm of Red Capital Group, (RED) closed a $26.2 million balance sheet construction loan for an affiliate of CNL Healthcare Properties, Inc., in support of a new Class A seniors housing and skilled nursing facility to be constructed in Tega Cay, South Carolina, a desirable suburb located on the shores of Lake Wylie and within the Charlotte, North Carolina metropolitan area. The 152 unit campus development will offer assisted living, memory care, and skilled nursing care with an emphasis on wellness and rehabilitative services. The project is currently under development and upon completion will be operated by affiliates of Maxwell Group, Inc.

RED’s non-recourse construction loan will finance the development and stabilization of The Wellmore of Tega Cay, the flagship community for the Wellmore brand which is focused on a hybrid approach to wellness and health care for seniors. The project will total almost 150,000sf of Class A construction incorporating high quality finishes and design elements over a campus setting consisting of six buildings, including a 25,000sf clubhouse and wellness center and extensive amenities. The deal highlights RED’s balance sheet capabilities and desire to support top tier sponsors and operators on new seniors housing development projects.

Kevin Maddron, Senior Vice President at CNL Healthcare Properties commented, “We are pleased to grow our extensive seniors housing portfolio by partnering with RED Capital and Maxwell Group on this exciting new campus. The residents of Tega Cay can expect a state-of-the-art community developed and operated by Maxwell Group, an industry leader in senior living. RED, and particularly its leadership team, made this possible by offering a unique development capital solution with timely execution on the terms proposed”.

RED is a full-service capital provider for the seniors housing community and continues to build a track record in seniors housing construction financing. “We are thrilled to be working with a blue chip firm such as CNL Healthcare Properties and its accomplished healthcare investment team,” stated Adam Sherman, Managing Director of Red Mortgage Capital, LLC and lead banker on the transaction. “This transaction demonstrates the progress RED is making in advancing its broader strategy by utilizing our balance sheet capabilities to provide construction and bridge financing to supplement our Agency and FHA permanent loan products.”

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About RED CAPITAL GROUP, LLC
(http://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 ten 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 Sherman

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