JD Stettin of Carnegie Capital has certainly had his hands full recently, having closed a couple of refinances in the Pacific Northwest, no easy task in the early days of COVID-19, we’re sure.
Mr. Stettin first sourced and structured a cash-out refinance of a 60-unit memory care community near Eugene, Oregon. Featuring a roughly 50-50 mix of Medicaid and private pay residents, the community was between 15 and 20 years old and was owned by a regional operator. Structured at a 75% loan-to-value (putting the community’s value at just under $9.9 million, or $165,000 per unit), the loan came with a 5.55% interest rate for a three-year term. A national bank held the senior note, while a private lender took the B-piece.
Next, Mr. Stettin arranged a forward commitment refinance at Certificate of Occupancy (which was obtained shortly before the loan closing) for a senior care facility located in Meridian, Idaho (Boise MSA). A private lender provided the loan, which was structured as a bridge loan to pay off maturing construction debt, fund cost overages and fund a new reserve for the property through stabilization. The campus features assisted living, memory care and skilled nursing services, and currently has a waiting list. It was built by a regional developer with other similar facilities in Idaho, Utah and Oregon. The $15.1 million loan came with a 6% interest rate fixed for three years.