Greystone Provides $49M Refi for 2 Senior Housing Communities
The real estate lender provided the Freddie Mac loans for two assisted living and memory care facilities.
New York—Real estate lender Greystone has provided $49.4 million in Freddie Mac loans for the refinancing of two assisted living and memory care facilities, in Carmichael, Calif., and Denver.
Greystone Managing Directors Scott Kavel and Cary Tremper originated the separate loans.
A $25.2 million Freddie Mac Seniors loan was provided to Oakmont Senior Living LLC to refinance Oakmont of Carmichael, a 71-unit assisted living/memory care community in Carmichael, a suburb in the Greater Sacramento metro area. The 10-year, fixed-rate loan carries a 30-year amortization. The two-story community is newly constructed and includes amenities like a theater room, game room, beauty salon/barber shop and landscaped interior courtyard with patio.
Oakmont Senior Living LLC used the loan to replace its floating-rate debt with long-term, fixed-rate debt. “This transaction is a perfect example of Oakmont’s effective use of its revolving credit facility with Freddie Mac to take assets off construction lines, let them season and then take them to permanent financing,” Neal Raburn, managing director at Greystone, told MHN.
The second transaction was for a $24.3 million Freddie Mac Capital Markets Execution loan that was provided to Spectrum Retirement Communities to refinance the 97-unit HighPointe Assisted Living and Memory Care community in Denver, which opened in 2013. The seven-year loan includes three years of interest-only payments. Community amenities include a wellness center, beauty salon/barber shop, theater, garden and lounges with fireplaces.
“The HighPointe loan was used to take out the client’s construction/mini-perm debt while achieving maximum cash flow. … Though the property was recently constructed and had limited operating history, Greystone was able to structure the transaction to meet the client’s loan request,” Raburn explained.
“Our sound relationship and experience with Freddie Mac and its products equipped us to provide these clients with financing solutions tailored to their needs in the senior care industry,” added Joe Mosley, executive managing director & head of agency lending at Greystone.
Greystone has worked with both Oakmont Senior Living and Spectrum Retirement Communities before. “Spectrum has over a decade-long history with Cary Tremper and is thrilled with the execution from both Greystone and Freddie Mac,” said Jeff Kraus, managing director at Spectrum Retirement Communities.
Other recent transactions for Greystone include lending $107 million for a Texas portfolio acquisition in August and providing a $14 million Fannie Mae Loan to Atlantic Multifamily 12 in June for its acquisition of an Orlando community.
The Greystone team has a strong overall outlook for the senior housing lending market. “Capital remains available for experienced owners and operators of senior housing facilities through multiple sources,” Raburn said. “Greystone has financed over $1 billion in the last 18 months through our partnerships with Fannie Mae, Freddie Mac, HUD, banks and life companies. We believe transaction volume will remain strong and capital will remain available for experienced owners and operators for the foreseeable future.”