Knighthead Funding, LLC has provided The Northwind Group with a $34.5 million first mortgage construction loan for the development of an active adult community in Selden, New York. The loan was underwritten to a roughly 69% “as-complete” value, and the property is fully permitted, planned and approved. Situated on 13.84 acres, the complex will comprise 124 two-bedroom, two-bath units, including 36 affordable homes in 15 two-story residential buildings. Considering the supply/demand imbalance and the limited prospects for new construction in the area, Knighthead’s capital will help Northwood bring needed quality senior housing to a market with high barriers to entry.
This is the fourth active adult property for which Knighthead has provided funding. Back in 2020, The United Group of Companies, Inc. secured a $32.1 million first mortgage loan from Knighthead for construction of an age restricted community in Stuart, Florida. The loan was underwritten to a 60% loan-to-stabilized value. The Sovana at Stuart completed construction in February of this year and will open to residents soon, with 182 total units on six acres. The project ultimately cost $47.8 million, or $262,600 per unit, to develop. The same year, Knighthead provided a $19 million first mortgage refinance loan for Parc Gardens, a newly constructed active adult property in Lafayette, Louisiana. The loan was underwritten at a 64% loan to as-stabilized value. And around 2015, the company provided a $5 million construction loan for Hidden Harbor estates, a 22-unit age restricted condominium complex on the water in Copiague, New York.
Since December 2021, Knighthead has also originated $66 million in first mortgage debt for the acquisition of office and multifamily assets throughout the United States. Since its inception in 2013, Knighthead has originated more than $2.1 billion in loans, closing 162 loans on 10 asset types across 29 states.
