Red Oak Capital Holdings, LLC provided $11.10 million in financing for the acquisition and capital improvements of Cottages of Clayton, a 90-unit assisted living community in Dayton, Ohio.
Structured under the firm’s Core-Plus Bridge Loan Program, the loan carries an 18-month initial term and a loan-to-stabilized value (LTSV) of 69.0%.
The interest-only loan was originated by Regional Manager Stratos Athanassiades, underwritten by Thomas Gorski, and administered by James Myatt. The borrower, Clayton Realco, LLC, is a private investor group that owns and operates 12 senior living communities.
The acquisition presents an opportunity to complete targeted capital improvements, bring the property into HUD compliance, and enhance operational efficiency through the borrower’s existing management platform.
Originally built in 1999, the Cottages of Clayton is in a predominately residential community at 8212 North Main Street in Dayton OH. Situated on approximately 7.88 acres, the seven-building community contains 90 studio residential units with a gross building area of approximately 48,000 square feet. Each unit includes a private bathroom and 24-hour emergency response capability.
The cottage-style layout is a defining characteristic of the community, distinguishing it from traditional corridor-based assisted living communities. Each residential building contains its own kitchen, laundry facilities, and resident lounge areas, fostering a residential rather than institutional environment. Community amenities include a dining room, activity room, salon, and outdoor spaces, complemented by a dedicated leasing and management building on-site.
The sponsor’s business plan focuses on sustaining high occupancy while improving operating margins through staff optimization, reduced agency labor, and targeted expense controls. Revenue growth is expected to be supported by favorable reimbursement trends in the operating market, expanded ancillary service offerings and modest unit additions where feasible. Together, these initiatives are expected to support steady performance improvement over the course of ownership.
