The team at Live Oak Bank arranged a couple of financings for two owner/operator clients. First, to refinance a newly built memory care community in Tarpon Springs, Florida, Live Oak provided a five-year, floating rate bridge loan totaling $12.3 million to the developer, Watercrest Senior Living. Opened in March 2018, the purpose-built community has 64 units and operates under Watercrest’s “Market Street” brand. Watercrest worked with Lument to arrange the financing. This brings Watercrest’s portfolio to 13 communities in Florida, Georgia, South Carolina and Virginia.
The second transaction saw Live Oak Bank provide a $28.5 million construction loan to Mosaic Management for the development of a 142-unit independent living community in Salem, Oregon. The loan came with three-year term, two one-year extensions and a floating rate. This project is Phase II of a campus that already includes a 138-unit assisted living/memory care community, which opened in May 2019. That loan amount comes out to about $200,000 per unit, resulting in a development cost of around $300,000 per unit assuming a conservative 65% loan-to-value.
