One of Watercrest Senior Living Group’s success stories just reached stabilization and refinanced with the help of Chris Fenton of PGIM Real Estate Finance. Developed at an approximate cost of $17 million, or $191,000 per unit, in Sebastian, Florida, the 89-unit property opened in May 2016 and shot out of the gates in its lease-up, reaching 62% occupancy by August of that year. Since then, the community has fully stabilized and became eligible for permanent financing.
To refinance an existing bank loan from Community & Southern Bank (now Bank of the Ozarks), PGIM originated a $10 million Freddie Mac loan, with a variable rate, seven-year term and 20 years of amortization at approximately 50% loan-to-value.
