Red Capital Provides $19 Million in Bridge Financing for Three Assisted Living Facilities in Ohio

Red Capital Advisors LLC, the merchant banking arm of Red Capital Group, has provided $19.2 million in bridge financing to Premier Senior Living Group LLC for the acquisition of three assisted living and memory care communities in north central Ohio.

The facilities include the Inn at Fountain Park in Bryan (93 units), The Inn at Orchard Park in Bucyrus (40 units), and The Inn at Westbrook in Upper Sandusky (50 units). Red Capital Advisors, based in Columbus, Ohio, made the announcement in a Jan. 6 press release.

The balance sheet financing provided by Red Capital Advisors facilitated the acquisition of the three properties and will bridge the period from acquisition to delivery of the permanent financing utilizing the FHA LEAN program. The FHA LEAN applications are being processed by affiliate Red Mortgage Capital LLC.

The transaction was Red Capital Advisors’ first after suspending its bridge, gap and other principal lending activities while it was owned by a commercial bank parent entity. A sale from that entity was completed in May 2010, thereby allowing Red Capital Advisors to reposition itself as a stand-alone debt and equity capital provider in the multifamily and seniors housing arenas.

Premier Senior Living Group is an owner and operator based in New York. The privately held firm and its affiliated companies provide a spectrum of senior housing services including independent living, assisted living, and dementia/memory care. The company has been successful in acquiring both high-end stabilized properties as well as troubled properties, improving their operations and creating value, according to its website.

Robert Borsody, a principal of Premier Senior Living Group, acknowledges that this particular bridge financing transaction presented some unusual obstacles. Still, he’s already looking ahead to the next potential deal.

“In addition to processing the permanent FHA financing for this portfolio of assisted living properties for Premier Senior Living, we also are working with Red Capital on two assisted living acquisitions in Florida and look forward to working with them in the future since they deliver what they promise,” says Borsody.

Red Capital Group provides capital across the spectrum of projects, ranging from independent living and assisted living through skilled care and community hospitals. Red Mortgage Capital has closed more Fannie Mae DUS seniors housing transactions than any other DUS lender since inception of the Fannie Mae program for seniors housing in the late 1990s.

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