The following are a few recent notable loan transactions in the senior housing industry. Jointly they illustrate the many financing options available to senior housing and facility providers.
California Affordable Senior Living Facility Refinances
Sunset Normandie Towers, a section 8 facility in California, recently secured a $13.6 million refinance loan. By taking advantage of HUD’s Section 223(f) program, the facility was able to secure more favorable loan terms including locking in a low interest rate and taking out a large amount of equity. In statements the facility indicated that the loan would allow them to make much needed improvements to the facility.
Illinois Facility Secures Interest Only Loan
Cottages of New Lenox, an assisted living and memory care facility located outside of Chicago, recently secured a $20 million refinance loan that will be interest-only for the first three years. It is anticipated that this interim loan will permit the facility to grow and capitalize on its memory care emphasis, which is aligned with current market demands.
Large Loan Finalized for Diverse Seattle Senior Living Community
Timber Ridge at Talus recently finalized a deal that allowed it to secure up $154.5 million for expansion of its CCRC. The deal consists of two loans of different amounts and different interest rates under a master credit agreement. The CCRC is home to 36 transitional-care beds and 184 independent living apartments and currently boasts a 95% occupancy rate. The expansion, which will add 9 transitional care beds, 145 independent living apartments, and is consistent with the CCRCs popularity, is already presold over 80%.
Atria Secures Mortgage Refinance Loan
Atria Senior Living recently secured a $16.2 million Freddie Mac loan with a seven-year floating rate term that was used to refinance a mortgage debt for Atria Maplewood Place and buyout an equity partner. Twenty percent of the assisted living and memory care facility’s units are set out for low income residents. Atria is proud of Maplewood place’s role as an affordable option in an expensive market.
Cambridge Realty Capital Arranges Two Large Loans
Last but not least, Cambridge Realty Capital recently arranged two large loans for facilities in Oklahoma and California. The first was a $10.3 million conventional loan to refinance four facilities including assisted living, skilled nursing an independent living units owned by Diakonos Group related entities. The second was a $28.8 million HUD 232 lean loan for a Pasadena, California-based assisted living facility.
If you’re considering refinancing your loans, contact the senior housing experts at Cambridge Realty Capital to discuss your options.
