New York, NY — April 13, 2022 — Lument recently closed a $24.5 million bridge loan to refinance construction debt for an assisted living (AL)/memory care (MC) community in Charleston, South Carolina. Kevin Oakley, director with Lument, and Steve McGee, head of debt syndications at Lument, led the transaction.
“Completing this refinance via the bridge loan resulted in several benefits for the borrower, namely allowing them to reset the capital structure, release some of the equity partnership, and buy time to complete the lease-up and achieve stabilization,” said Oakley.
The community opened during the pandemic, which caused the lease-up to proceed slower than anticipated. The $24.5 million bridge loan, placed with a national bank via Lument’s debt syndications group, refinanced high-cost construction debt that was nearing maturity and allowed the borrower time and flexibility to focus on operations.
“Despite the occupancy challenges, we were still able to obtain very attractive terms for the financing,” Oakley added. “The community is now over 70% occupied, continuing on an upward trajectory toward full lease-up, and will soon be ready for permanent financing.”
The bridge loan has a floating interest rate, five-year term with one-and-a-half years of interest-only (IO), and 25-year amortization. The capital structure also includes an $11.5 million mezzanine loan from an asset management firm. The borrower is a large regional owner, operator, and manager with a large portfolio in the Southeast and the Carolinas.
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, investment banking, and investment management solutions. 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.