When BPM Senior Living Company decided to permanently finance its assisted living/memory care community in Milwaukie, Oregon, Lancaster Pollard had the solution. Matt Lindsay and Doug Harper of Lancaster Pollard successfully arranged a $5.3 million loan from Fannie Mae, going from engagement to closing in under 60 days. Making that timeframe even more impressive is that a planned change in management from third-party to in-house occurred during the underwriting process. BPM was also able to extract significant equity from the transaction, which comes 12 years after its original purchase of the community.
Built in 1979 as a 79-unit independent living community, BPM purchased the community from Holiday Retirement in 2005 for $1.65 million, or $20,886 per unit. It was operating at a little better than breakeven at the time of the sale, with occupancy of 95%. In 2014, BPM converted the community to assisted living and memory care, while also reducing the number of units to 70. Clearly, operations have improved greatly in time for this refinance. Assuming a loan-to-value of 70%, the property’s value jumps to approximately $7.6 million, or $108,570 per unit, a 360% increase from its 2005 price. Even an especially liberal 80% loan-to-value nets a roughly 300% jump in value.
