Tremper Capital Group has hit a rich vein of activity, with four closings since the start of May and several more planned in June. The firm kicked things off with an agency refinance closed for a 133-unit seniors housing community in the Pacific Northwest. Opened in 2022, the community featured independent living, assisted living and memory care services and was a strong performer, with nearly 100% occupancy. The operator, Merrill Gardens, has clearly done a great job at the location.
The borrower wished to take out the original construction debt and had received quotes from life insurance companies and banks. But Freddie Mac offered the best combination of terms and provided a $42.9 million loan with a 10-year term and an impressive six years of interest only. The interest rate was also fixed at 5.93%.
Tremper Capital Group also refinanced construction debt on a seniors housing property in central Florida that opened in 2021. The 250-unit community saw delays in opening and needed more time to continue executing the business stabilization plan.
The borrower had extended its construction loan but the time had come to refinance. Banks are usually not interested in financing such non-stabilized assets, so a few alternatives were presented to the borrower before a REIT emerged as the ultimate lender. The REIT provided a $42.3 million loan with a five-year term, full term of interest only, a competitive fixed rate and no recourse. Operations are on the upswing, so hopefully the borrower made the right decision.
Look out for the other recent TCG closings in next week’s email.
