Regions Bank closed a couple of transactions in recent weeks for both a to-be-built senior living community and an existing one whose owners were looking to get a small cash-out. The $29.2 million construction loan was arranged for a joint venture between a Midwest-based developer/owner and a Southeast-based operator.
Located in a fast-growing Alabama market, the community will consist of 105 independent living and 27 memory care units in a three-story building. Jack Boudler and Chris Honn secured the $29.2 million, or $211,000 per unit, loan, which came with a five-year initial term, four years of interest only, and a staged reduction in loan repayment recourse. Also, at or prior to maturity, Regions will refinance the community with agency debt.
Then, to the refinance, Messrs. Boudler and Honn provided a $16.3 million bridge loan on behalf of a Florida-based private owner/operator and its partner, a Northeast-based equity provider, to take out acquisition bank debt used to purchase a 101-unit independent living community in Kansas City, Kansas. After opening in early 2017, the community was already over 95% occupied at closing. You have to love the IL market. The two and a half year, floating-rate loan is interest-only for the whole term. And once again, the Regions team will look to provide an agency refinance solution.
