A single-asset owner in Texas refinanced the construction debt on its assisted living/memory care community with the help of JD Stettin of Carnegie Capital. Built five years ago, the 90-unit community in Houston went through operator changes before the pandemic, and then dealt with occupancy troubles during the pandemic. So, it was at last on the tail end of lease-up with census reaching 80% when ownership decided to refinance its existing construction loan before maturity.
A $10.5 million refinance enabled the borrower to also replenish its interest reserves and pay off over $500,000 of tax liens. The loan came with a seven-year term, fixed interest rate at 4.75% and one year of interest only. Carnegie also re-subordinated the borrower’s existing EB-5 financing.
