Columbus, OH – November 4, 2011 – (RealEstateRama) — Red Mortgage Capital, LLC has provided one of the nation’s first Fannie Mae DUS ARM 7-6 (“Fannie Mae 7-6”) structured product loans for a 46-unit/52-bed Memory Care Facility located in Louisville, Colorado.
Non-recourse financing in the amount of $5,620,700 was provided to Balfour Senior Living to refinance its Balfour Cherrywood Village Memory Care facility, which was built in 1999. Balfour currently owns and operates a private continuing care retirement community for seniors which totals 380 units. The company, also based in Louisville, was founded in 1996 to develop, own and operate premier Independent Living, Assisted Living, Skilled Nursing and Memory Care services.
The financing structured by Red Mortgage Capital, LLC utilized Fannie Mae’s 7-6 product, which offers rate flexibility, as it initially starts in a variable mode at a rate typically lower than the prevailing fixed rate. The maximum variable rate level is set during the origination process and borrowers have the ability to convert to a fixed rate, with no conversion fee, after the first year prepayment lockout ends.
Michael K. Schonbrun, Founder and CEO of Balfour Senior Living said, “We are pleased to have completed this financing with Red Mortgage Capital and believe the flexibility to convert to a fixed rate option is very appealing.”
Jeffrey C. Ringwald, lead banker from Red Mortgage Capital, LLC’s Seniors Housing Group said, “It was a pleasure working with the Balfour team on their first Fannie Mae transaction. As an active Fannie Mae DUS seniors housing lender, we deliver solutions nationwide for all types and sizes of borrowers, offering an array of Fannie Mae structured products such as Extended and Early Rate Locks, Supplemental Loans and numerous term, amortization and prepayment options. In this transaction, we were able to structure maximum flexibility while delivering attractive floating rate debt on a non-recourse basis for the client on their standalone memory care community.”
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, including having closed more FHA Multifamily & Healthcare loans during HUD FY-2010 than any other lender and remaining active as a top Fannie Mae DUS® lender for both multifamily and seniors. Red Mortgage Capital, LLC’s nationwide agency platform includes Fannie Mae DUS, Freddie Mac Seller/Servicer for Seniors, and FHA MAP and FHA LEAN lending for multifamily, seniors housing and health care properties.
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; the underwriting 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.
