Greystone says it closed the $150 million Facility on behalf of Oakmont Senior Living of Chino Hills, Calif., and the first transaction was recently funded under the Facility for $29 million.
Freddie Mac's Revolving Credit Facility provides significant advantages for senior housing owners with large development and acquisition pipelines or assets requiring time to stabilize, says Greystone.
According to Greystone, the interest-only product provides a competitive floating rate that is indexed to LIBOR, and allows for up to 75% leverage and an interest-only DSC of 1.50x for independent living and 1.60x for assisted living, at a stressed sizing rate.
One of the significant advantages of the Facility, as noted by Joe Lin, chief financial officer at Oakmont Senior Living, is that borrowers can continue to borrow against increased values and income created in the properties, up to the maximum amount of the Facility.
Given that lending is based on income in place, and to help with transitional assets, the Facility has no minimum requirements for property occupancy, says Greystone. Generally, the minimum size for a Revolving Credit Facility is $50 million, but the Facility can be closed with as little as one asset totaling $10 million or more, according to the company.