A Charleston, South Carolina-based developer, WV Ventures, engaged Alec Blanc of Monarch Advisors (an affiliate of Senior Living Investment Brokerage) to close construction financing for a to-be-built senior living community in southern Georgia. The 80-unit project received senior and mezzanine debt equal to 75% of its total development cost. Monarch secured the senior loan from a regional bank with a five-year term and competitive rate. The loan was structured as interest-only for the first three years and also includes a recourse requirement, which will start to burn down upon certificate of occupancy.
As for the mezzanine financing, Mr. Blanc sourced the loan from a firm deploying funds under the Georgia Rural Jobs Act, which comes with tax advantages that provided for very favorable pricing of the debt. Just 90 days after contract, the loan was secured, and construction commenced.