Senior living sees first Freddie Mac lease-up loan
Oakmont of San Jose, an assisted living and memory care community in Northern California, is the recipient of the first-ever Freddie Mac lease-up loan on a seniors housing property, said real estate lending, investment and advisory company Greystone on Wednesday.
Greystone provided the $27.5 million loan for permanent financing after the 2016 completion of construction of the 66-unit, 72-bed assisted living and memory care community. The loan provided a permanent financing exit from the original construction loan just more than three months after the facility opened.
“With their immediate high occupancy and stellar developer reputation, Oakmont of San Jose was the first to take advantage of Freddie Mac's solution to replace existing debt and remove interest rate risk,” said Scott Kavel, managing director at Greystone, who originated the transaction with Greystone's Neal Raburn and Cary Tremper.
The non-recourse Freddie Mac loan has an 11-year term, a fixed rate and 30-year amortization.