Monarch Advisors closed an acquisition loan for a portfolio of assisted living communities in the Pacific Northwest. The buyer, the current manager of the properties, engaged Monarch to source $7.3 million of senior debt for the transaction. Monarch’s Alec Blanc successfully secured a commitment from a national SBA lender, consisting of a $4.3 million, 10-year bank loan, fixed at 8.45% for the first five years, and a $2.6 million SBA Debenture expected to be fixed at around 6.3% for 25 years.
In addition, there was a $300,000 SBA 7(a) loan floating at Prime plus 0.70% for 10 years. The debt covered approximately 80% of the transaction costs, putting the purchase price at roughly $9.0 million, or $150,000 per unit.
