G Capital Markets, a capital advisory firm based in Carmel, California, recently closed on the recapitalization of a 29-unit/59-bed assisted living community in Livermore, California. Built in 2021 by a regional owner/operator, the property leased up in 2022 and has shown consistent strong performance since then, with cash flow margins well over 40% and occupancy at 90%. Few today can boast numbers like those.
The bridge-to-HUD loan was structured with a large equity-out component and sized to maximize the takeout refinancing, while allowing the borrower to submit a HUD application in 2024 without the need to wait for the typical two years of debt seasoning. GCap arranged the $15.5 million credit facility with a regional bank partner that carried an interest rate with a SOFR-based spread in the low 300s and a below market financing fee.
The borrower was an existing relationship client of GCap, and this property will be part of a broader permanent portfolio refinancing that will be closing in 2025. Meanwhile, GCap is actively growing its team and pipeline, with bridge and HUD takeout debt projects in California, Washington, Oregon, Idaho and Nevada.
