A Charleston, South Carolina-based owner/operator refinanced its seniors housing community in Morgantown, West Virginia, with the help of Live Oak Bank and Berkadia Commercial Mortgage. The bank closed a $39 million A/B uni-tranche loan, with Berkadia’s Seniors Housing & Healthcare Group funding the subordinate debt.
The loan provides a bridge to agency debt and features a three-year term, 24 months of interest-only payments and no exit fee. Loan proceeds were used to retire existing bank debt along with partnership debt associated with the borrower’s 2021 purchase of the 175-unit, independent living, assisted living and memory care community. The community was stable operationally, but the borrower wanted further NOI enhancement and/or an interest rate decline before obtaining permanent agency debt. That is expected to occur in 12 to 24 months.
