RED arranges $36.4 million loan for Homestead
RED Capital Partners, the proprietary debt and equity banking arm of comprehensive capital provider RED Capital Group, recently led a $36.4 million first mortgage construction loan to Homestead Senior Living. 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, based in Paterson, NJ, partnered with Solvere Senior Living (an affiliated company of Solutions Advisors), based in Princeton, NJ, to develop the community. Homestead at Hamilton will be a 195-unit, Class A seniors housing community located in Hamilton, NJ, 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 that goal.