Red Oak Capital Holdings, LLC has originated an $11.10 million loan to support the acquisition and planned capital improvements of the Cottages of Clayton, an assisted living community in Dayton, Ohio. The financing backs a 90-unit senior housing property and is being used both to fund the purchase and to invest in upgrades at the community.
The loan was structured through Red Oak Capital Holdings’ Core-Plus Bridge Loan Program. It features an 18-month initial term and is interest-only over that period, allowing the borrower to focus on executing its improvement plan and operational strategy. The financing is sized to a loan-to-stabilized value ratio of 69%, indicating that the lender underwrote the business plan to an expected stabilized value rather than as-is conditions.
The interest-only bridge financing was originated by Regional Manager Stratos Athanassiades, with underwriting led by Thomas Gorski and loan administration handled by James Myatt. The borrower, Clayton Realco, LLC, is described as a private investor group that owns and operates 12 senior living communities, positioning it as an experienced sponsor within the senior housing sector.
Athanassiades noted that the Cottages of Clayton is viewed as a strong asset with high occupancy and solid fundamentals. He highlighted that the property sits in a market characterized by limited new supply and growing demand driven by an aging population. Those dynamics, combined with the sponsor’s track record of enhancing performance through operational improvements and strategic repositioning, supported the underwriting of the loan.
The Cottages of Clayton was originally constructed in 1999 and is located at 8212 North Main Street in Dayton. The community spans approximately 7.88 acres and consists of seven buildings. The property offers 90 studio residential units and has a gross building area of about 48,000 square feet, according to Red Oak Capital Holdings.
The financing enables Clayton Realco, LLC to complete the acquisition while funding capital improvements intended to further strengthen the performance of the Cottages of Clayton. With an interest-only structure and a short initial term, the bridge loan provides flexibility during the execution period as the sponsor pursues operational enhancements at the assisted living community.
