RED Provides $29M Fannie Mae DUS/MBS Refinance for Class A Assisted Living and Memory Care Community in San Gabriel Valley
COLUMBUS, Ohio–(BUSINESS WIRE)–#FHA–In the exclusive town of Sierra Madre, California, a high-barrier to
entry and highly competitive infill market in Los Angeles County, RED
Capital Group and Borrower, Kensington SM GP LLC, worked together to
bring a Class A Assisted Living and Memory Care community to an area
that was previously underserved in terms of seniors housing.
Construction and lease-up of The Kensington Sierra Madre was completed
in record time, leading to a recent $29M refinance with Fannie Mae
DUS/MBS.
The
Kensington Sierra Madre is a 75-suite Assisted Living and Memory
Care community located in Sierra Madre, California, which is in the
heart of the San Gabriel Valley, just to the north of the City of Los
Angeles. The property, which is home to up to 90 residents, includes 41
assisted living suites and 34 memory care suites, complemented by
welcoming resident common areas for dining, living and socializing, and
gardens throughout the grounds. The community is operated by Kensington
Senior Living, LLC (KSL).
In this difficult to zone market, high barriers to entry were met by
exceptional community outreach and multiple successful votes, including
public approval on the 2012 Presidential Ballot. The fulfillment of RED’s
and KSL’s vision in Sierra Madre is a testament to the patience,
perseverance, and expertise required to deliver a best-in-class seniors
housing community in such a desirable location.
This was a ground up construction loan for RED’s proprietary
balance sheet lending capabilities that transitioned effortlessly into a
permanent Fannie Mae loan ahead of schedule.
“RED was delighted to work with Fannie Mae to provide the
permanent debt for this outstanding quality seniors housing asset
located in a significantly underserved and built-out Los Angeles
submarket,” states Kathryn Burton Gray, Senior Managing Director for RED.
“Kensington Senior Living, the operator, implemented its best-in-class
assisted living and memory care programming which resulted in a rapid
lease-up and stabilization, and performance levels exceeding
expectations.”
Kensington Senior Living, LLC (KSL), which owns and operates The
Kensington, is led by industry-veterans Tiffany Tomasso, Dave Faeder,
Billy Shields and Dan Gorham. The group is headquartered in Reston, VA
and currently owns and operates five assisted living & memory care
communities including two in California, one in Maryland, one in
Virginia and one in New York with four more in development.
Dan Gorham, Partner at Kensington Senior Living LLC, said of the recent
refinance, “RED provided classic ‘one stop shopping’ by funding a
well leveraged construction loan and originating an attractive take-out
with Fannie Mae. All within three years!”
About RED CAPITAL GROUP, LLC
Recognized for its industry expertise, innovative and comprehensive
structures, and consistently high rankings, RED Capital Group,
LLC has provided over $73 billion of integrated debt and equity capital
since 1990 to the seniors housing and health care, multifamily,
affordable, and student housing 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 exceeding $16 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 is a
subsidiary of ORIX USA Corporation. For more information on RED
Capital Group, LLC, visit www.redcapitalgroup.com.
About ORIX USA Corporation
ORIX USA provides innovative capital solutions that clients need to
propel their business to the next level. Based in Dallas, ORIX USA has a
team of more than 600 employees spanning nearly 20 offices across the
U.S. and Brazil. ORIX USA and its family of companies offer investment
capital and asset management services to clients in the corporate, real
estate, municipal and energy sectors, while holding $6 billion of assets
and managing an additional $29 billion, approximately. Its parent
company, ORIX Corporation, is a Tokyo-based, publicly owned
international financial services company with operations in 37 countries
and regions worldwide. ORIX Corporation is listed on the Tokyo (8591)
and New York Stock Exchanges (IX). For more information on ORIX USA,
visit www.orix.com.
DUS® is a registered trademark of Fannie Mae
Contacts
RED Capital Group, LLC
Lisalynne Quinn, +1-469-385-1434
Director
of Marketing
llquinn@redcapitalgroup.com
