RED Capital Group Arranges $7.8 Million Construction Loan to Convert Historic Building to Apartments in Lancaster County, PA
October 11 2018 - 4:19PM
Business Wire
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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the full release here:
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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.
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version on businesswire.com: https://www.businesswire.com/news/home/20181011005893/en/
RED CAPITAL GROUP, LLCLisalynne Quinn, +1-469-385-1434Director
of Marketingllquinn@redcapitalgroup.comredcapitalgroup.comtwitter:
@Lisalynne_REDCorp. twitter: @REDCapitalGroup
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