Looking for Answers in the Lending Market: A Q&A with Alec Blanc of Monarch Advisors
To get a sense of what is going on in the capital markets in this immediate post-COVID-19 world, we turned to Alec Blanc of Monarch Advisors for his own thoughts. How has the lending environment changed from the beginning of the second quarter to now? Overall, there is less debt capital available than there was prior to the COVID-19 crisis. Many lenders have paused any lending activity in the sector. Notably, most of the mortgage bank bridge lending programs are on hold right now. Most of the remaining lenders have tightened their criteria for new client acquisition, leverage, and underwriting. We are also seeing some widening of credit spreads, probably in the neighborhood of 50 to... Read More »
Monarch Advisors Secures Bank Refinance For Illinois Property
Alec Blanc of Monarch Advisors announced the successful closing of a bank refinance for a 99-unit assisted living/memory care community in central Illinois. April closings have been few and far between, so, well done Mr. Blanc. Built in three phases from 2001 to 2009 and then renovated in 2017, the community was acquired about a year ago by a St. Louis-based real estate investment group and its operating partner, Compass Senior Living. The community is still stabilized but has seen improvements to both census and profitability in the last year. To refinance the acquisition debt and return capital to the investors, Monarch Advisors secured $6.4 million in senior debt from a regional... Read More »
Monarch Advisors Funds Development in South Carolina
A Charleston, South Carolina-based developer, WV Ventures, engaged Alec Blanc of Monarch Advisors (an affiliate of Senior Living Investment Brokerage) to close construction financing for a to-be-built senior living community in southern Georgia. The 80-unit project received senior and mezzanine debt equal to 75% of its total development cost. Monarch secured the senior loan from a regional bank with a five-year term and competitive rate. The loan was structured as interest-only for the first three years and also includes a recourse requirement, which will start to burn down upon certificate of occupancy. As for the mezzanine financing, Mr. Blanc sourced the loan from a firm deploying funds... Read More »
Monarch Advisors Sources Acquisition Financing for SLIB Deal
Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage sold a 71-unit memory care community in Vista, California for $22.8 million, or about $321,000 per unit. Helping to push up that price was first, the location in the high-barrier-to-entry market of San Diego County, and second, its solid operations with a 29% margin on $5.85 million of revenues and an 88% occupancy rate. It was built in the last 10 years too, which helps. The single-asset, local owner decided to exit the industry, prompting the sale to a private equity group located in Colorado that owns several other senior living properties and some commercial assets around the country. SLIB’s affiliated... Read More »Schedule a demo
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