Lease-up did not go according to plan for an assisted living/memory care community that opened during the pandemic in Charleston, South Carolina, but ownership was able to refinance its construction debt with the help of Lument. Kevin Oakley and Steve McGee led the closing, which included a $24.5 million bridge loan placed with a national bank. It came with a floating interest rate, five-year term, 25-year amortization and 18 months of interest only. The capital structure also included an $11.5 million mezzanine loan from an asset management firm.
A regional owner/operator with a large portfolio in the Southeast was the borrower. With its construction loan approaching maturity, they wanted to reset the property’s capital structure, release some of the equity partnership and also buy time to bring the community to stabilization. Currently, occupancy is over 70%, so the time for permanent financing may be soon.
