Red Mortgage Capital LLC, a high-volume FHAlender and the mortgage banking arm of Red Capital Group, based in Columbus, Ohio, has provided FHA acquisition financing to Keystone Our House LLC for a 27-facility portfolio of assisted living and memory care properties.
The acquisition financing was made through the FHA LEAN Section 232/223(f) program. The resulting 18 FHA-insured financing for the purchase of facilities in Wisconsin and Minnesota had an aggregate loan amount of approximately $51 million.
"This transaction was a significant undertaking for all parties involved," says Dave Kingen, principal of Keystone Keystone Our House LLC, which is affiliated with Keystone Senior LLC and entities of the Keystone Senior Group, which develops, owns and operatescommunities. "To handle 18 concurrent FHA applications, RED assigned a team comprised of experienced processors, underwriters and a project manager," he adds.
Since its formation in 1995, Keystone Senior Group has developed 11 senior housing and healthcare facilities in six states and operated 14 retirement communities in nine states, not counting the newly acquired portfolio. Keystone Senior Group’s current communities are located in Iowa, Massachusetts, Ohio, Colorado, Minnesota and Wisconsin.
"The transaction included 18 loan applications, a master structure and unique seller note financing, which closed simultaneously 35 days after receiving the final FHA insurance commitment," said John Powell and Scott Moore of Red Mortgage Capital LLC.
Red Mortgage Capital LLC is a Fannie Mae delegated underwriting and servicing (DUS) lender for both multifamily and seniors Housing, and, in addition to its FHA financing, is active in the financing critical access and other smaller community and rural hospitals. Red Capital Group is a subsidiary of-based ORIX USA Corp.