Live Oak Bank Growing Its Senior Care Business

Still just less than a year after forming its senior care lending division (and hiring Adam Sherman of Blueprint Healthcare Real Estate Advisors as the new division’s industry expert), Live Oak Bank closed two more loans for seniors housing properties. First, working on behalf of a local owner/operator in Georgia, Live Oak provided a $5 million SBA 7a loan and a companion balance sheet loan to fund the construction of a 60-unit assisted living/memory care community in the town of Cartersville. The loans came with floating rates and fully amortize over 25 years, with no balloon payments. For the developer, this isn’t their first rodeo in northwest Atlanta (a market we have heard has seen plenty of development), as they previously built and leased a 39-unit AL/MC community in Paulding County before successfully selling it to a national owner/operator in 2016.

Then, the Live Oak team provided acquisition financing for a 12-unit boutique assisted living community located outside of Seattle, Washington. Although small, the community featured high monthly rents, between $6,000 and $10,000, and had a reputation for quality care. Plus, some of the rooms even had views of Puget Sound. A husband/wife team, one of whom had been a long-time employee at the community, purchased the property from the previous owners for approximately $2.44 million, or $203,300 per bed. The acquisition was funded with a $2.2 million SBA 7a loan, which came in at around 90% loan-to-cost.


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