Senior Housing Finance Activity: Greystone, Omega Healthcare Investors

CBRE Arranges Financing for Senior Living Community in California

CBRE National Senior Housing Vice Chairman Aron Will recently arranged financing on behalf of an institutional sponsor for Peninsula Del Rey, a 207-unit, independent living, assisted living and age-restricted community in Daly City, California.

CBRE helped secure a sizable, four-year floating rate loan from a regional bank for the 304,350-square-foot, Class-A property.

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Greystone Provides Seniors Housing Industry’s First-Ever Freddie Mac Lease-Up Loan

Greystone, a real estate lending, advisory and investment firm, recently announced it has provided a $27.5 million Freddie Mac loan for permanent financing after completion of construction for a 66-unit, 72-bed Oakmont Senior Living assisted living and memory care community in Northern California. The transaction was originated by Greystone’s Neal Raburn, Scott Kavel and Cary Tremper.

The financing for Oakmont of San Jose represents Freddie Mac’s first-ever lease-up loan on a senior housing property. The non-recourse Freddie Mac loan has a term of 11 years with 30-year amortization and a fixed rate.

The Freddie Mac lease-up loan offered a permanent financing exit from the original construction loan just over three months after the community 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,” Kavel said in a press release. “We are thrilled to have provided the first-ever seniors housing Lease-Up Loan from Freddie Mac, and we value our long-standing relationship with both Oakmont Senior Living and Freddie Mac.”

Omega Healthcare Investors Shares Information About Senior Notes

Omega Healthcare Investors, Inc.(NYSE: OHI) recently issued a $550 million aggregate principal amount of the company’s 4.750% Senior Notes due in 2028, pursuant to an indenture dated as of April 4, 2017, among Omega and certain of its subsidiaries as guarantors, and the U.S. Bank National Association as the trustee. Omega also recently issued a $150 million aggregate principal amount of the company’s 4.500% Senior Notes due in 2025, pursuant to an indenture dated as of September 11, 2014, among Omega and certain of its subsidiaries as guarantors, and the U.S. Bank National Association as the trustee. 

The 2025 Notes mature on Jan. 15, 2025, and the 2028 Notes mature on Jan. 15, 2028. The 2028 Notes bear interest from April 4, 2017 at a rate of 4.750% per year, payable semi-annually in cash, in arrears, on January 15 and July 15 of each year, beginning on Jan. 15, 2018. The 2025 Notes bear interest from Jan. 15, 2017 at a rate of 4.500% per year, payable semi-annually in cash, in arrears, on January 15 and July 15 of each year, starting on July 15, 2017. 

National Cooperative Bank Commits $256 Million to Low-to-Moderate Income Communities

National Cooperative Bank, a financial services firm dedicated to providing banking products to socially responsible organizations and cooperatives across the country, committed $256 million to initiatives serving low-to-moderate income communities and new cooperative development in 2016.

NCP provided the capital via direct lending and investments in several impact sectors, including $173 million for affordable housing initiatives, housing cooperatives and unit loans, and $3.3 million to support aging and health care services.  

Written by Mary Kate Nelson

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