Bridge lending may be in a period of relative inactivity not seen for some time, but CBRE got creative working with a multifamily bridge lending program to refinance a brand-new senior living community in Orange County, California. The luxury community in Laguna Niguel features 176 independent living/ assisted living flex units and 22 units for memory care on an irreplaceable 11.6-acre site.
It was built in 2018 and consists of numerous amenities, including a 15,000-square foot rooftop with a lounge, sunroom, open-air art studio and putting green. Atria Senior Living operates the community under its “Signature” brand on behalf of the joint venture owners Fremont Realty Capital and Steadfast Senior Living.
To take out existing debt, the CBRE team of Aron Will, Austin Sacco and Tim Root secured an $80 million loan with a floating rate, three-year term, full-term of interest only and extension options. That was placed through MF1 Capital, LLC, a bridge loan program kicked off by CBRE a couple of years ago and managed by a joint venture between Berkshire Residential Investments and Limekiln Real Estate Investment Management.
The benefit to the program is the flexibility for borrowers. There is no defined credit lock or cash flow requirements that would normally make it tough for communities still in lease-up to obtain bridge financing. CBRE will still source and service the loans on behalf of MF1. About 75% of its focus is in the multifamily market, with the remainder set aside for seniors housing.
