Senior Housing Financing

Loan Size
$5+ million (smaller loans available, on a case by case basis)

Eligible Projects
Construction, acquisition, or refinance of age-restricted apartments, independent living (IL), assisted living (AL), memory care/Alzheimer’s (ALZ), skilled nursing facilities (SNF), or combinations thereof

Organizations We Serve
Non-profit or for-profit organizations, including operators/owners, private equity groups, and REITs with strong track records within the industry and superior operational expertise

Permanent Financing

FHA/HUD loan program

• Loan term: Up to 35 years (for properties with 25% or less IL)
• Interest rate: Below-market fixed interest rate
• Acquisition/refinance loan-to-value (LTV): Lesser of 100% of outstanding debt plus transaction and rehab costs; 80% of LTV (85% for non-profit); 1.45x debt-service coverage (DSC)
• Recourse: Non-recourse Fannie Mae and Freddie Mac loan programs
• Property types: Single asset or multiple assets, fee-managed or leased properties
• Loan term: 5- to 30-year terms for IL, AL, or ALZ with 20% or less skilled nursing income
• Interest rate: Fixed or variable; early rate lock is available
• LTV: Up to 75% for IL and AL properties (65% for interest only); 65% for standalone memory care
• Minimum DSC: 1.30x for IL; 1.40x for AL; 1.45x for ALZ properties
• Recourse: Non-recourse
• Additional products: Tax-exempt financing, bond credit enhancements, and supplemental financing

Construction-to-Permanent Financing

FHA/HUD loan program

• Loan term: Up to 40 years
• Interest rate: Below-market fixed interest rate
• Construction LTV: Lesser of 75% of value; 90% of replacement costs (95% for non-profit); 1.45x DSC
• Sub-rehab LTV: Lesser of construction LTV or 100% of estimated rehabilitation costs; 90% (95% for non-profit) of estimated as-is value before rehabilitation
• Recourse: Non-recourse

Construction Financing

Balance sheet execution

• Loan term: Up to 3-year initial term; longer terms available with amortizations; extensions available to facilitate the placement of permanent financing
• LTV: Up to 75%; Loan-to-cost: Up to 80%
• Minimum debt yield: 12% using underwritten cash flow
• Recourse: Recourse required in most cases