Red Capital Partners Completes Loan For Ciena Healthcare

<div><a href="http://redcapitalgroup.com/" target="_blank" rel="noopener">Red Capital Partners LLC</a>, has completed a $20.5 million balance sheet loan for <a href="http://www.cienahealthcare.com/" target="_blank" rel="noopener">Ciena Healthcare</a> for two skilled nursing facilities with a total of 236 beds in Shelby Township and Lansing, Mich.</div><div> </div><div>The financing package provides a bridge-to-FHA loan, which includes an earn-out that permits Ciena to increase debt outstanding prior to permanent financing. </div><div> </div><div>This structure allows them to increase loan proceeds elig

Published: August 28, 2014Posted by Shandi Matambanadzo, Associate Editor

Red Capital Partners LLC, has completed a $20.5 million balance sheet loan for Ciena Healthcare for two skilled nursing facilities with a total of 236 beds in Shelby Township and Lansing, Mich.

The financing package provides a bridge-to-FHA loan, which includes an earn-out that permits Ciena to increase debt outstanding prior to permanent financing.

This structure allows them to increase loan proceeds eligible for HUD refinance as the building’s leasing progresses, thereby avoiding potential interim financing that might otherwise be necessary to satisfy HUD’s debt seasoning requirements.

“Ciena Healthcare was able to begin construction in 2013 prior to the final financing commitment so that the project could progress prior to the harsh Michigan winter season,”says Mohammad Qazi, CEO, Ciena Healthcare.