EBSC Lending provided $26.2 million in financing for an affordable seniors housing community in Michigan. The borrower is a not-for-profit owner/operator with experience in hospitality that will use the proceeds to refinance existing debt and fund capital improvements. Specific upgrades will target unit interiors, building exterior, elevators, common areas and building systems such as security, backup electricity and medical alert.
The community comprises 41 units with a mix of mostly one-bedrooms, some studios and two-bedrooms. All of the units will be reserved for low- and moderate-income seniors, with 13 reserved for households earning below 30% of the area median income, 11 for those below 60% of AMI and 15 for households below 80% of AMI.
The borrower purchased the asset from a long-time owner that was transitioning out of the market. Since the acquisition, the borrower renovated the building and increased census to around 98% occupancy.
The fixed-rate debt was structured at an 85% loan-to-value ratio with a five-year term, including 36 months of interest-only payments. Additionally, the terms were negotiated to include the ability to pay off the loan with no prepayment penalty.
