HJ Sims recently refinanced a newly built senior living community in the Mountain West with a Fannie Mae loan. An owner/operator/developer with 25 communities in its portfolio located across the West operates the assisted living/memory care community. Sims acted as financial advisor and took advantage of a short-term dip in interest rates to secure an attractive, fixed interest rate before the property was considered fully stabilized.
The non-recourse loan was also structured at 70% loan-to-value with a 12-year term versus the standard 10-year term, which provides additional flexibility for the borrower in pushing out any need to refinance or exit the investment. Plus, there are two years of interest only payments, followed by a 30-year amortization. As a result, the borrower was able to pay off the construction loan in full and access equity.
