HAMILTON, NJ — RED Capital Partners, LLC, the debt and equity banking arm of comprehensive capital provider Red Capital Group, LLC, recently lead a $36.4 million first mortgage construction loan to Homestead Senior Living LLC. The balance of the capital stack was provided by an institutional private equity group and Regional Capital Group, which will provide EB-5 Financing, along with sponsor’s equity.
Pike Senior Housing Partners LLC, based in Paterson, NJ, partnered with Solvere Senior Living (an affiliated company of Solutions Advisors LLC), based in Princeton, NJ, to develop the community. Homestead at Hamilton will be a 195-unit, class A senior housing community located in Hamilton, outside of Princeton and approximately an hour from New York City. The community will consist of 96 independent living units, 75 assisted living units and 24 memory care units. The project has a highly complex and structured capital structure, including an interim, bridge-to-EB5, mezzanine lender. Due to the timing and uncertainty of the EB5 program, the borrower wanted maximum flexibility. Through creative structuring, RED Capital Partners worked closely with the borrower and other credit partners to achieve this goal.
“The creativity, flexibility and perseverance of the entire RED team was outstanding. This transaction presented unique challenges through the underwriting process,” said David Weiner, principal, Pike Seniors Housing Partners, LLC. Kristin Kutac Ward, principal, Solvere said, "As we continue to grow our management arm, Solvere Senior Living, we feel fortunate to have a partner in RED that believes in our vision and facilitate our growth.” “It’s always rewarding to work with a partner on a complex structured deal like this opportunity,” said Kathryn Burton Gray, senior managing director for RED. ”We are very pleased that we were able to provide a customized solution for the team at Homestead Senior Living. James Scribner, managing director for RED said, “I’ve worked with several principals involved in Homestead over the years and am excited to see this project come to fruition. Each of the partners brings tremendous strength to the team.”