Thorofare Capital, which is expanding its bridge-to-agency lending program, has provided a $13 million short-term bridge loan for the refinancing and renovation of a senior housing community in Phoenix. Park Terrace at Greenway includes 227 assisted and independent living units.
The two-year, interest-only, floating-rate loan supplies a deposit of $10 million for the repayment of the construction loan and funds reserves to facilitate the lease-up of vacant units. A total of $3 million will be used for funding the completion of unit renovations and for an earn-out based on performance milestones.
“We were able to offer the sponsor a flexible bridge loan that included future funding for CapEx completion, an appealing structure coupled with an ‘earn-out’ with a fast execution given our well-capitalized platform and balance sheet capabilities,” said Brendan Miller, Thorofare’s CIO, in prepared remarks.
Former Embassy Suites
The owner acquired the asset in 2015, out of a bank’s portfolio, as an Embassy Suites Hotel. The property was converted into a senior living facility in 2016.
The property is located at 2577 West Greenway Road, adjacent to Interstate 17 and near Cave Creek Golf Course, in the northern part of the city. The garden-style, ADA-compliant community features 184 independent living and 93 assisted living units. Common-area amenities include:
- multiple recreation rooms
- tennis court
- swimming pool
- refurbished outdoor patio space
- walking trail
“While the Phoenix market is absorbing a notable amount of new supply, this asset presented an attractive loan basis and it provides a value-oriented price point which does not compete with high-end, resort-style senior housing assets recently built by REITs and institutional developers in the area,” Miller added.
Image courtesy of Thorofare Capital