Beech Street Capital Refinances Seattle-Area Senior Housing Community
- Jan 24, 2013
By Keith Loria, Contributing Writer
Newcastle, Wash.—Beech Street Capital, LLC, a Bethesda, Md.-based mortgage banking company, has closed a $15.9 million Fannie Mae conventional seniors housing loan for Regency Pacific Community to refinance Regency Newcastle, a 99-unit independent and assisted living community in Newcastle, Wash.
“Regency manages about 50 different buildings in Oregon and the city of Washington and [is] well known in the marketplace and has a good reputation,” James F. Sherman, Beech Street’s executive vice president of seniors housing, tells MHN. “If you look at the area for Regency Newcastle, there’s not a lot of competition for this building, which is one of the things that makes this building so special.”
The community is close by to major companies, such as Microsoft, Amazon and Boeing, which makes it strong draw for the executive class.
“Here you have more of an upper-income level population to draw from,” Sherman says. “They want to draw their parents to a nice facility and so many are longer distances and are older.”
Located at 7454 Newcastle Golf Club Rd., the senior living community features an indoor pool, exercise room and library with fireplace. There’s also a coffee shop inside, so families who come to visit have a place to go, and a walking path outside.
Because the maturity date of its construction loan was rapidly approaching, the borrowers requested a quick turnaround. Given time constraints, Beech Street recommended the borrowers pursue a Fannie Mae conventional seniors housing loan.
The fixed-rate loan has a 10-year term, with 9.5 years yield maintenance, and a 30-year amortizing schedule.
“It was fully stabilized with a waiting list, it has good financial backing behind it and is in a great location,” Sherman says. “We don’t see this as a risk at all.”
Regency Pacific Community has approximately 50 nursing, assisted living and retirement communities under ownership and/or management, including more than 2,300 nursing home beds and over 1,700 retirement and assisted living units. Regency Newcastle was completed in 2008.
“Beech Street worked hard to close the deal within our timeframe,” Jim Clay, Regency Pacific’s founder, says. “It was a pleasure to work with a lender that is attuned to client needs and focused on meeting the client’s objectives.”