Contemporary Healthcare Capital is helping to finance Medical Development Corp.’s (MDC) new Canterfield brand of assisted living/memory care communities in the Southeast. Currently there are two Canterfield communities open, one in Oak Ridge, Tennessee and one in Forsyth County, Georgia. But there are six more coming, including one in Kennesaw, Georgia.
For that project, which should cost around $17 million, or approximately $182,800 per unit to build, Contemporary is providing a $3.1 million four-year mezzanine loan with a rate in the mid-teens, while State Bank and Trust (a local bank with locations across Georgia) is providing a $12.45 million loan with a rate of LIBOR plus 300 basis points and a two-year term plus a possible 12-month extension. MDC will provide the equity for the balance.
Each Canterfield community features 71 AL units and 20 MC units, plus 2 IL units which act as model units for a Phase II addition in the future. Contemporary will look to supply mezzanine financing for other future Canterfield projects in order to help reduce the cost of borrowing for MDC.