| Loan Amount |
$750,000 and larger |
| Market: |
Nationwide |
| Eligibility: |
Congregate care and assisted living facilities. No skilled nursing permitted. Facilities must have full sprinkler systems. Ownership and management must each demonstrate five years of experience with this specific property type. Properties with up front admission fees are ineligible. |
| Loan Term: |
10, 15, 18 and 25 year loan terms |
| Amortization: |
Up to 25 years |
| Prepayment: |
Prepayable in full at any time; subject to either a yield maintenance or defeasance formula |
| Recourse: |
Non-recourse, except for standard lender carveouts |
| Borrower: |
All properties must be owned by a single asset or single purpose entity |
| Debt Service Coverage: |
Minimum 135% (congregate care facility) or minimum 140% (assisted living facility). If tax-exempt variable rate financing is utilized, the minimum DSC is 130% or 135%, respectively. |
| Loan to Value: |
Up to 75% of appraised value. If tax-exempt financing is utilized, the maximum loan to value is 80%. |
| Subordinate Financing: |
Prohibited |
| Occupancy: |
Properties must have maintained 90% occupancy level for the most recent twenty four consecutive months. A shorter period may be permitted for newly constructed, recently acquired or repositioned properties with additional debt service coverage or collateral, strong sponsor financials and track record. |
| Assumability: |
Yes, subject to lender approval and the payment of a processing fee and a 1% assumption fee |
| Reserves: |
Tax and insurance escrows are required. Replacement reserves and repairs required as determined by the engineer’s report. |
| Rate Lock: |
Rates are fixed ten days prior to closing. Early rate lock option is available. |
| Application Fee: |
Approximately $20,000 or other such amount determined by the lender to cover the costs of all third party reports (including environmental, building condition and appraisal), travel expenses and other out-of-pocket expenses |
| Financing Fees: |
Typically 1 – 1.5% of the loan amount |
| Timing: |
Commitments issued in 60 days or less |
| Underwriting Requirement: |
All final submissions must include an Argus Valuation-DCF data file.If you have not modeled your submitted project in Argus Valuation-DCF, you must engage us or a third party to model your project. However, on a preliminary basis, please feel free to submit your proforma in any format. |
