Regions Bank announced a couple of balance sheet refinances for senior care clients. The first was closed for an 84-unit assisted living/memory care community in the suburbs of Honolulu, Hawaii, and we hope a site visit (or two) was required. Developed in 2016 by a large, senior living owner/operator based in southern California, the community was about 92% occupied at closing.
It received a $29 million non-recourse balance sheet loan, which comes out to approximately $297,000 per unit, to repay an existing HUD loan and provide low leverage loan proceeds for an adjacent land parcel. It came with a floating rate and initial term of three years, plus an interest-only period and one-year extension option. Chris Honn originated the transaction on behalf of a repeat customer of Regions.
Mr. Honn also originated a $25 million non-recourse balance sheet loan for the refinance of a 128-unit independent living community in a Houston, Texas suburb. A large, privately owned company based in the Midwest opened it in 2015, and occupancy is currently 80%. To replace existing bank debt, the owner received a three-year bridge loan at about $195,000 per unit, with an interest-only period, one-year extension option and a floating interest rate. This was a new customer for the bank.
