Christopher Fenton of PGIM Real Estate Finance originated the refinances of two Morning Pointe assisted living/memory care communities in Kentucky. This transaction comes just two years after both communities were built, so the market research clearly worked since occupancy has already cleared 90% at the two locations.
There was a 60-unit AL/MC community in Danville, Kentucky located near a regional medical center and a 44-unit memory care community in Russell, also located near a top Kentucky hospital. So, location clearly helped too. Working with Fannie Mae, PGIM provided a $7.5 million loan for the Danville property ($125,000 per unit) and a $7.8 million loan for the Russell community ($177,273 per unit). The interest rate for both loans was in the mid-4s.