RED Closes a $12.7 Million Balance Sheet Acquisition Loan for Birchwood Health Care Properties’ Oklahoma Portfolio
August 22 2016 - 1:00PM
Business Wire
RED Capital Partners, LLC, the proprietary debt and
equity banking arm of comprehensive capital provider RED Capital
Group, LLC, recently completed a $12.7 million Balance Sheet
acquisition loan to Birchwood Health Care Properties for the
acquisition of four skilled nursing facilities in Oklahoma.
RED provided a high-leverage bridge-to-HUD loan in this
unique transaction. A mezzanine lender provided additional proceeds
used towards the acquisition of the facilities, as well as a
hospice care and home health company, in a related transaction.
These ancillary businesses also provided credit support for
RED’s acquisition loan.
The Oklahoma portfolio is comprised of four skilled nursing
facilities, totaling 361 beds, located in Muskogee and McAlester,
OK. Transition Health Services, will operate the facilities and
ancillary businesses. As a result of Birchwood’s and Transition’s
strong industry experience, and despite a challenging reimbursement
and fiscal environment, RED was able to provide substantial
loan proceeds at a very competitive spread.
Under new ownership, the facilities are poised to become market
leaders. The facilities will undergo important changes that will
not only enhance patient care, but allow them to address the
community’s critical need for facilities servicing a higher acuity
population.
Isaac Dole, CEO of Birchwood Healthcare Partners, stated, “This
was a very unique transaction and RED crafted a creative
solution and delivered excellent execution to meet our June 30
deadline. We appreciate their commitment to the transaction and
Birchwood.”
Kathryn Burton Gray, Senior Managing Director for RED,
said, “We are thrilled to be working with Birchwood Health Care
Properties. RED looks forward to building on its
relationship and to financing their continued growth.”
James Scribner, Managing Director for RED, said,
“Birchwood and Transition will bring an institutional quality
approach to the care and services provided. RED is excited
to have provided such a creative solution and Birchwood’s largest
loan to date.”
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
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version on businesswire.com: http://www.businesswire.com/news/home/20160822005683/en/
RED Capital Group, LLCLisalynne Quinn, +1-469-385-1434Director
of Marketingllquinn@redcapitalgroup.com
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