Luxury Independent Living Lands $58M Refi
- Aug 17, 2015
Santa Rosa, Calif.—Real estate lending, investment and advisory company Greystone announced that it has secured a $58 million loan to refinance Varenna at Fountaingrove, an independent living facility owned and operated by affiliates of Oakmont Senior Living. The 10-year loan was funded through Freddie Mac’s Index Lock product, which allowed the borrower to benefit from the existing 10-year Treasury rate prior to commitment. This transaction marks the second Freddie Mac capital markets execution provided by Greystone to the borrower to date, along with assets in a separate $150 million Freddie Mac Credit Revolver.
“The Freddie Mac securitized loan product is a fantastic option for stabilized seniors properties to secure long-term financing,” said Scott Kavel, managing director of Greystone’s Seniors Housing Team. “As there is always a level of risk with a securitized loan execution, the borrower certainly achieved upside by utilizing the Index Lock with this transaction, saving over 50 basis points in rate movement during underwriting.”
Varenna at Fountaingrove, a 163-unit facility located in Santa Rosa, Calif., provides its residents with gourmet dining, concierge services, activity rooms, a salon, day spa services, a private theater, walking paths, gardens and a wellness center. The community is named for a scenic town in Italy near Lake Como, as its views and surroundings are reminiscent of its namesake.
“As one of our marquis assets, Varenna now benefits from 10-year financing at an attractive rate, and we’re thrilled that the Freddie Mac Index Lock product was executed flawlessly by Greystone, virtually eliminating any rate risk during the processing of the transaction,” said Joe Lin, CFO of Oakmont Senior Living.