Seniors Housing Loans
Flexible loan terms
Certainty of execution
Speed in processing and underwriting
5 to 30 years
Up to 30 years
Fixed- and variable-rate options available
Existing, stabilized, purpose-built seniors housing properties
Sponsors and operators experienced in the seniors housing industry
Lenders experienced in financing seniors housing and approved by Fannie Mae for participation
75% (80% for fixed-rate tax-exempt bonds).
1.30x, if the property is 100% independent living
1.40x, if the property is 100% assisted living
1.45x, if the property is stand-alone Alzheimer’s/dementia Care
For combinations of IL, AL and ALZ, special rules apply to calculate minimum DSCR.
Supplemental Loans are available
Loans may be voluntarily prepaid upon payment of yield maintenance for fixed-rate loans and declining prepayment premium for variable-rate loans.
30- to 180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option.
30/360 and Actual/360
Non-recourse execution is available with standard carve-outs for “bad acts,” such as fraud and bankruptcy.
Replacement reserve, tax, and insurance escrows are typically required.
In addition to standard third-party reports (including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment), management and operations reports are required for all seniors housing properties. Licensed seniors housing properties also require a regulatory compliance report.
Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.