Alec Blanc of Monarch Advisors hit a rich vein of activity, closing several transactions at the end of September. The largest was a construction loan closed for the development of a new 105-unit/113-bed, skilled nursing, assisted living and memory care building in Lancaster, Ohio.
The sponsor, located in Louisville, engaged Monarch to source $19.9 million of debt, equal to approximately 70% of the cost of the project. That puts the cost of the project at around $250,000 per bed or $270,000 per unit. Monarch secured a construction/mini-perm loan commitment from a local bank with a three-year construction phase, interest only at SOFR+2.75% and a two-year permanent phase fixed at the two-year Treasury yield + 2.75% with a 25-year amortization. The loan also includes recourse and deposit requirements from the sponsor. This is Monarch’s second construction loan closing for this client.
