COLUMBUS, Ohio--(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.
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