Red Mortgage Capital Completes $19.9 Million Permanent Financing for Three Bridge-to-HUD Loans

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RED CAPITAL GROUP provides one stop acquisition and permanent financing for three seniors communities in Ohio, refinancing its (proprietary capital) interim loan with FHA LEAN non-recourse financing for three seniors communities in Ohio.

Christian R. Mauger, Senior Managing Director, Red Capital Partners, LLC

We bridge the timing difference until the permanent capital structure can be delivered...we make the transition from interim to permanent as streamlined and simple as possible for the owner.

Red Mortgage Capital, LLC provided permanent financing for three assisted living senior communities in north-central Ohio utilizing FHA Section 232/223(f) mortgage insurance and Ginnie Mae Mortgage Backed Securities (“GNMA MBS”). The FHA insured loans paid off interim financing that related entity Red Capital Partners, LLC had provided to facilitate acquisition of the properties by New York City-based Premier Senior Living, LLC (“Premier”), a privately-owned owner/operator of seniors housing.

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.

The Ohio loans are the first to close in a pipeline of transactions nationwide where RED is providing experienced owners with proprietary capital on an interim basis and arranging the permanent Agency financing.

For the Premier transactions, RED’s ability to provide proprietary capital and efficiently arrange non-recourse, long term financing was essential to meeting the owner’s needs, as there was a limited timeframe in which to execute the acquisition. Although the owner originally sought permanent acquisition financing, when it became apparent that such financing would not be available in the required timeframe, Red Capital Partners, LLC (“RCP”) stepped in to bridge the timing gap and provided acquisition capital while the permanent solution was being secured. The interim bridge loan subsequently was paid off via the FHA 232/223(f) insured loans underwritten and processed by Red Mortgage Capital, LLC.

Christian R. Mauger, Senior Managing Director of principal lending entity Red Capital Partners, LLC said, “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. 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.”

The permanent financing of the Premier projects also marks the completion of RCP’s first interim loans made since it previously had suspended activities under a commercial bank parent entity. A sale from that entity in mid-2010 allowed RCP to re-launch its principal lending activities for multifamily and seniors housing properties. Since RCP resumed providing bridge-to-permanent solutions in the past year, it has made eight interim loans totaling more than $80 million.

James F. Sherman, Senior Managing Director of Red Mortgage Capital, LLC’s Senior Living Group and Jason D. Smeck, Director and lead banker on the FHA permanent financings added, “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. It was a privilege to work with Premier Senior Living to help them secure these excellent additions for their growing portfolio.”

Operating nationwide since its inception in 1990, RED CAPITAL GROUP, LLC is recognized for its industry expertise, innovative and comprehensive structures, and consistently high lender rankings. Red Mortgage Capital, LLC is the nation’s most active FHA Multifamily/Healthcare lender (HUD FY2010), a top Fannie Mae DUS lender for multifamily and seniors and a national Freddie Mac Seniors Housing Seller/Servicer. Red Mortgage Capital, LLC also services nearly $14.5 billion in commercial multifamily and senior living loans.

RED CAPITAL GROUP, LLC is committed to being the nation’s premier provider of capital across the spectrum of asset classes.

About RED CAPITAL GROUP, LLC
RED CAPITAL GROUP, through three operating companies, provides integrated debt and equity capital to the multifamily, student and seniors housing, and health care industries. Red Mortgage Capital, LLC is: a leading Fannie Mae DUS® lender for both Multifamily and Seniors Housing; the nation's most active FHA Multifamily/Seniors lender (MAP- and LEAN-Approved); a national Freddie Mac Seniors Housing Seller/Servicer; an active financier of Critical Access, community and rural hospitals; and services more than $14 billion of income property mortgage loans. Red Capital Markets, LLC (MEMBER FINRA/SIPC) is: a leader in the trading and distribution of Fannie Mae and GNMA Project MBS; an active underwriter of developer-driven multifamily housing bonds; and also is remarketing agent for $1.5 billion in variable rate demand tax-exempt and taxable housing and health care bonds. Red Capital Partners, LLC delivers proprietary debt and equity to the multifamily and health care industries and provides asset management services for RED’s proprietary debt and equity investments.

RED CAPITAL GROUP is headquartered in Columbus, Ohio, employs more than 200 and maintains nine offices nationwide. Since 1990, the bankers of RED CAPITAL GROUP have provided over $52 billion in taxable and tax-exempt first mortgage debt, mezzanine level capital and equity to multifamily, seniors housing, health care, and other real estate properties nationwide. RED CAPITAL GROUP is a subsidiary of ORIX USA Corporation.
About Our Parent Company 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.

Red Mortgage Capital, LLC is a licensed FHA MAP and FHA LEAN lender.
DUS® is a registered trademark of Fannie Mae.

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Linda Mackov

Jason D. Smeck
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