New York, NY — December 15, 2022 — Lument announced today that it closed a $31.6 million Freddie Mac loan to refinance Keystone Place at Legacy Ridge, a 160-unit seniors housing community in Westminster, Colorado. Eric Mestemaker, Doug Harper and Casey Moore led the transaction for Lument.
The Freddie Mac loan features a ten-year term, five years of interest-only payments, 30-year amortization, and a low fixed-interest rate. The loan refinanced two existing Freddie Mac loans totaling $28.2 million and provided almost $3 million in cash-out proceeds.
“Lument’s focus and can-do attitude made a substantial difference for us,” said Brenda Armstrong, Keystone’s general counsel. During the loan process, the community enjoyed a substantial improvement in net operational income, as occupancy rates rose and rent collections increased. Lument subsequently adjusted its underwriting and successfully secured an increase in loan proceeds.
Lument also helped Keystone take advantage of Freddie Mac’s index lock functionality to lock the interest rate more than three months prior to closing, saving 100 basis points and generating substantial debt service savings. “The loan closed on the first day possible without prepayment penalties, and the final loan proceeds well exceeded our target. We could not be more pleased with the outcome,” Armstrong added.
Lument has a longstanding relationship with Keystone that dates back more than ten years and includes acquisition bridge, construction financing, mezzanine financing, and many FHA-insured loans. This was Lument’s first agency loan for the company. “We are thrilled to have delivered for this longstanding client,” said Lument’s Harper. “The successful collaboration with Keystone and Freddie Mac should position the community for a bright future.”
Built in 2011 15 miles north of Denver, Keystone Place at Legacy Ridge features independent and assisted living units. The community has maintained strong occupancy throughout 2022.
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, real estate investment sales, investment banking, and investment management solutions. Lument has approximately 600 employees in over 25 offices across the United States. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.