JD Stettin of Carnegie Capital helped secure the refinance of a small assisted living community in a secondary market near Charlotte, North Carolina. The community was built in the 1980s and features under 30 units of assisted living. It operated well throughout the pandemic, and around half of its census comprised Medicaid residents. There was a triple-net lease on the property that was set to expire prior to the loan’s maturity.
With the help of Mr. Stettin, the community’s mom & pop owner secured a roughly $1.5 million loan from a local bank with a sub-4% interest rate fixed for a five-year term. It came with no prepayment penalty for the life of the loan and paid off all secured and unsecured notes. In addition, the borrower was able to take substantial unrestricted cash out. Finally, the new appraised value was 5% higher than the sponsor’s existing appraisal, which was completed only one year earlier. Sounds like a successful transaction for the owner.
