Runk & Pratt, a family-owned operator of senior living communities in western Virginia, refinanced its 171-unit independent/assisted living community in Lynchburg with the help of SunTrust Bank. This isn’t the first transaction between the two. SunTrust had funded Runk & Pratt’s acquisition of the property in 2016 with a short-term bridge loan.
Built in 2014, the community has been historically well occupied and generates strong cash flow. Taking out the acquisition debt, it received a $30.9 million Fannie Mae loan, with no recourse, a fixed rate for 10 years and a 30-year amortization schedule. Joshua Hausfeld handled the transaction for SunTrust.
Just a year earlier, SunTrust also refinanced another Lynchburg community owned by Runk & Pratt. The 57-unit assisted living/memory care community was originally built in 1978 but was converted to assisted living in 1996 and underwent extensive renovations in 1998, 2003 and 2016. It received a $13.2 million loan from HUD, courtesy yet again of SunTrust’s Joshua Hausfeld.