news 4 days ago

RED Capital Group Arranges $7.8 Million Construction Loan to Convert Historic Building to Apartments in Lancaster County, PA

The Associated Press

COLUMBUS, Ohio--(BUSINESS WIRE)--Oct 11, 2018--RED Capital Group, LLC (RED) recently arranged a $7.8 million construction loan for Tobacco Road apartments, an adaptive reuse of an historic building in Landisville (Lancaster County), Pennsylvania. Total project cost is $9.6 million.

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This former tobacco warehouse will be converted into a 66-unit apartment community. (Photo: Business Wire)

The loan will be used to develop the currently vacant brick warehouse into a 66-unit apartment community. The structure, a former tobacco warehouse consisting of four connected buildings, was built in the early 1900s and is on the National Register of Historic Places. The redevelopment will take advantage of some of the historic features, including refinishing wood floors in certain areas and exposed wood beams.

The apartments will help fulfill a substantial need in the region for market-rate units. They will be developed by S. B. Conrad. The complex will include one-, two- and three-bedroom units, an elevator, lounge area and fitness center, among other amenities.

“We identified this project as a regional opportunity,” said David Bonomo, Director at RED. “We directed our efforts toward local community lenders, and we are very pleased with the results.”

“This is an exciting opportunity,” said Steve Conrad, President of S. B. Conrad. “Tobacco Road will provide high-quality rental apartments in the Lancaster area marketplace, where the demand far exceeds the supply. To do so while preserving such a meaningful local real estate asset makes it even more rewarding.”

RED acted as exclusive structuring agent, and managed the solicitation effort on behalf of S. B. Conrad. They negotiated favorable pre-payment provisions, which will allow Conrad to refinance the bank loan within two years with no prepayment penalty.

“The RED team made this happen for us,” said Conrad. “They managed the financial side of the equation, allowing us to focus on what we do best – development. RED targeted the appropriate segment of construction lenders, delivered a term sheet in a matter of days, and positioned us to close within a few weeks.”

“This effort demonstrates the full-service capabilities of RED’s team,” said Trent Brooks, President and Head of Production at RED Mortgage Capital.

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 $78 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 Fannie Mae DUS® and MAP- and Lean-approved FHA lender with a mortgage servicing portfolio over $17 billion. RED Capital Markets, LLC (MEMBER FINRA/SIPC) is active 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 Corporation USA. For more information on RED Capital Group, LLC, visit our website at: http://www.redcapitalgroup.com.

DUS® is a registered trademark of Fannie Mae.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181011005893/en/

CONTACT: RED CAPITAL GROUP, LLC

Lisalynne Quinn, +1-469-385-1434

Director of Marketing

llquinn@redcapitalgroup.com

redcapitalgroup.com

twitter: @Lisalynne_RED

Corp. twitter: @REDCapitalGroup

KEYWORD: UNITED STATES NORTH AMERICA OHIO PENNSYLVANIA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE CONSTRUCTION & PROPERTY COMMERCIAL BUILDING & REAL ESTATE RESIDENTIAL BUILDING & REAL ESTATE

SOURCE: RED Capital Group, LLC

Copyright Business Wire 2018.

PUB: 10/11/2018 04:19 PM/DISC: 10/11/2018 04:19 PM

http://www.businesswire.com/news/home/20181011005893/en

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