Following a recent expansion of its senior living community in King County, Washington, a family owner turned to Steve Muth of M&T Realty Capital Corporation to secure Freddie Mac financing for it. The borrower originally built the property (located in Enumclaw about 35 miles southeast of Seattle) in 1986 with just 45 units, but in February 2018, they completed an expansion and renovation that brought the total number of units to 108, with 50 independent living, 37 assisted living and 21 memory care units.
This was the owner’s first Freddie Mac transaction, which consisted of a $16.8 million loan arranged through the agency’s Optigo® program to pay off the construction loan from a local bank. The 10-year loan came with a fixed rate and five years of interest-only payments, plus a 30-year amortization. It was structured at 60% loan-to-value, putting the property’s value at $28 million, or about $260,000 per unit, which is nearly equal to the state’s average for seniors housing properties according to the 25th Edition of The Senior Care Acquisition Report.