Wednesday, December 7, 2016

How International Business Interests Viewed the Quick Success of the Kensington Project

Mod: I thought this might be interesting for some. About the Kensington, here is what went down in Sierra Madre from the vantage point of the international business and investment community. No matter how this all was presented in town several years back, especially in regards to that locally perceived urgent need to quickly approve this project for its immediate construction, there was this other side to the picture as well. Apparently those involved with the Tokyo-based investors financing this project thought it all went through tout suite. This summary is from Berkshire Hathaway's Business Wire.

RED Provides $29M Fannie Mae DUS/MBS Refinance for Class A Assisted Living and Memory Care Community in San Gabriel Valley (Business Wire link): COLUMBUS, Ohio--In the exclusive town of Sierra Madre, California, a high-barrier to entry and highly competitive infill market in Los Angeles County, RED Capital Group and Borrower, Kensington SM GP LLC, worked together to bring a Class A Assisted Living and Memory Care community to an area that was previously underserved in terms of seniors housing. Construction and lease-up of The Kensington Sierra Madre was completed in record time, leading to a recent $29M refinance with Fannie Mae DUS/MBS.

RED was delighted to work with Fannie Mae to provide the permanent debt for this outstanding quality seniors housing asset located in a significantly underserved and built-out Los Angeles submarket”

The Kensington Sierra Madre is a 75-suite Assisted Living and Memory Care community located in Sierra Madre, California, which is in the heart of the San Gabriel Valley, just to the north of the City of Los Angeles. The property, which is home to up to 90 residents, includes 41 assisted living suites and 34 memory care suites, complemented by welcoming resident common areas for dining, living and socializing, and gardens throughout the grounds. The community is operated by Kensington Senior Living, LLC (KSL).

In this difficult to zone market, high barriers to entry were met by exceptional community outreach and multiple successful votes, including public approval on the 2012 Presidential Ballot. The fulfillment of RED’s and KSL’s vision in Sierra Madre is a testament to the patience, perseverance, and expertise required to deliver a best-in-class seniors housing community in such a desirable location.

This was a ground up construction loan for RED’s proprietary balance sheet lending capabilities that transitioned effortlessly into a permanent Fannie Mae loan ahead of schedule.

RED was delighted to work with Fannie Mae to provide the permanent debt for this outstanding quality seniors housing asset located in a significantly underserved and built-out Los Angeles submarket,” states Kathryn Burton Gray, Senior Managing Director for RED. “Kensington Senior Living, the operator, implemented its best-in-class assisted living and memory care programming which resulted in a rapid lease-up and stabilization, and performance levels exceeding expectations.”

Kensington Senior Living, LLC (KSL), which owns and operates The Kensington, is led by industry-veterans Tiffany Tomasso, Dave Faeder, Billy Shields and Dan Gorham. The group is headquartered in Reston, VA and currently owns and operates five assisted living & memory care communities including two in California, one in Maryland, one in Virginia and one in New York with four more in development.

Dan Gorham, Partner at Kensington Senior Living LLC, said of the recent refinance, “RED provided classic ‘one stop shopping’ by funding a well leveraged construction loan and originating an attractive take-out with Fannie Mae. All within three years!”

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 $73 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 leading Fannie Mae DUS® and MAP- and Lean-approved FHA lender with a mortgage servicing portfolio exceeding $16 billion. RED Capital Markets, LLC (MEMBER FINRA/SIPC) is a leader 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 USA Corporation. For more information on RED Capital Group, LLC, visit www.redcapitalgroup.com.

About ORIX USA Corporation

ORIX USA provides innovative capital solutions that clients need to propel their business to the next level. Based in Dallas, ORIX USA has a team of more than 600 employees spanning nearly 20 offices across the U.S. and Brazil. ORIX USA and its family of companies offer investment capital and asset management services to clients in the corporate, real estate, municipal and energy sectors, while holding $6 billion of assets and managing an additional $29 billion, approximately. Its parent company, ORIX Corporation, is a Tokyo-based, publicly owned international financial services company with operations in 37 countries and regions worldwide. ORIX Corporation is listed on the Tokyo (8591) and New York Stock Exchanges (IX). For more information on ORIX USA, visit www.orix.com.

sierramadretattler.blogspot.com

35 comments:

  1. Kensington seems to be a nice place. Now all said and done they are an asset to the community,nice tenants also......

    ReplyDelete
  2. Architecturally the Kensington is a success. Much better than city hall across the street.

    ReplyDelete
  3. I assume Trump will Tweet it's part of his $50 billion investment from the Japanese.

    ReplyDelete
  4. You get what you vote for. The citizens of Sierra Madre also voted in the UUT tax, without a sunset clause.
    Appears this town spends "their" good money, after bad.
    Fanny Mae and Max loans were also a risky bet. Although the Kenniston looks like the loans have some Daddy Warbucks backers.
    The number of Seniors living in the Suites, do not count with the State of California Regional Housing Numbers.
    The State requirement is for more planning from the town Council, to accomade these numbers Sierra Madre will be required to meet.

    ReplyDelete
  5. The Kensington is a very expensive, nice place. They do sponsor the Forth of July parade.
    I don't know how much tax they pay into the City to defray their water usage or City Fire, Police and Paramedics ,for ninety individuals plus staff.
    The city needs to have a strong businesses tax base; this is a residential facility in the business district.
    Now " you" understand the needs of a forever Utilities User Tax base inorder to keep the town running as a full service City.

    ReplyDelete
  6. "Community previously under served by Senior Housing".
    These Seniors don't count !

    ReplyDelete
  7. Would these Seniors and Caretakers cross the boulevard at a more timely pace, or break up the wheelchair brigade with a pause in the procession? Traffic gets backed up, when all are returning from the park outing.

    ReplyDelete
    Replies
    1. Why the hurry?! slow down and enjoy the view of downtown SM

      Delete
  8. All investors with the RED LLC, must be making a pretty penny.

    ReplyDelete
    Replies
    1. The 'crazy' Japanese billionaire who met Donald Trump has a 300-year plan
      http://money.cnn.com/2016/12/07/technology/masayoshi-son-trump-softbank-japan/

      Delete
  9. The damn building is too tall.
    And they still skate under the state laws by having a number of residents just below the trigger number for some kinds of licensing and inspections.

    ReplyDelete
    Replies
    1. Too tall? It's two stories, just like many, if not most, homes in town.

      Delete
    2. Do you live in a 2-story place? why the moaning?

      Delete
  10. Suites! Not units!

    ReplyDelete
  11. Suites! NOT BEDROOMS! !!

    ReplyDelete
  12. Headquartered in Virginia, corporate investors, "permanent debt"...yummy stuff for "hometown" Village of the
    Foothills. Permanent 10% UUT. Village of the "Fool"hills.

    ReplyDelete
    Replies
    1. The taxademic is just getting started.

      Delete
    2. The message will be: "We need to fix our water infrastructure." And why not? It got votes for other tax and rate increases.

      Delete
  13. If they don't trigger inspections from the State; hope they train their staff in rescue and safety in case the City of Sierra Madre has to contract out its services.

    ReplyDelete
    Replies
    1. What are you even talking about?

      Delete
    2. The Kensington is training a militia of wheelchair warriors.

      Delete
  14. It looks too tall, because it did not belong downtown. The owners even complained it would be expensive to remove more soil.

    ReplyDelete
    Replies
    1. Could it have been buried? With perhaps only that cone top sticking up into the air?

      Delete
  15. International Business Investments now need to locate small towns with City Councils eager to put "their" mark on anything for show.
    Investors get wealthy, why didn't the Council negotiate a percentage of earnings to become a permanent tax? Why do the Seniors and families of Sierra Madre have to subsidize this build ?

    ReplyDelete
    Replies
    1. Simple answer. For the same reason they voted for the UUT. They are Stupid with a capital S.

      Delete
  16. 8:09am. Perhaps you have a point. The parents of all school age children are cruising town back and forth all day long, picking up and dropping off. So this makes Sierra Madre a slow down drive by town!

    ReplyDelete
  17. If a resident of the Kensington slips and falls or is over medicated; what State agency would be involved? If there are no inspections on a regular basis, than the Sober Living Homes in town are similar to the Kensington. Making a differance for those that can afford to pay. The City Coffers and neighbors come second.

    ReplyDelete
  18. Marking 75 years since Pearl Harbor.

    ReplyDelete
    Replies
    1. Thanks. I think I'll go to the Buccaneer and get bombed.

      Delete
    2. And almost 125 years since the US overthrew the Hawaiian government.

      Delete
  19. Make it a Kamikaze.

    ReplyDelete
    Replies
    1. Sounds good, but I am definitely going to duck the Silver Bullet.

      Delete
  20. Have two family members living at the Kensington and have been pretty impressed with everything. Not wild about the overall style of the building, but it doesn't really mess up the views and it is only two stories. Very upscale inside and they have done very open with communication with our family members. They work hard to provide lots of activities for the residents.
    I have to laugh at the idea of what happens if people there are over medicated. You should stop by at happy hour in the evening. Lots of music, socializing, wine and beer. Serveral local people live there.
    They followed our rules in the building and have tried to be involved with the community. We could have done worse with that plot of land.

    ReplyDelete
  21. Soooo, what's your point of all this Crawford?

    ReplyDelete
    Replies
    1. Nothing too much. Just wanted to open something up for discussion.

      Delete