PORTLAND, OR-Berkadia Commercial Mortgage LLC has closed a $46.4-million loan for two senior housing properties here. Heidi Brunet, VP in Berkadia’s senior-housing group, originated the loan, which was funded by the company’s bridge-loan program, along with BBVA Compass. The purpose of the loan was to refinance existing mortgages on the properties.
The two properties, Russellville Park East and West, are located contiguously, but operated by LeisureCare as one combined campus. East was built in 2004 and offers 154 independent-living units. By 2008, East had stabilized with 99% occupancy, and construction on West began on an adjacent parcel. West opened in 2009 with 27 independent-living 95 assisted-living and 16 memory-care units.
The Russellville campus is a best-in-class senior-housing community and is centrally located in Portland. The community has three restaurants, a bar, a coffee shop, a salon, a spa and a Prime Fit gym with a resistance pool.
“LeisureCare is a premier senior-housing operator and one of our highly valued clients,” says Brunet. “We value our client relationships and are confident we can deliver debt financing products to our clients that meet their objectives, whether the financing need is for permanent financing or interim financing.”
Brunet tells GlobeSt.com that Rembold developed and still owns the Russellville properties, while LeisureCare has a minority ownership interest in them. She adds that the loan was designed to consolidate and refine the debt on the two properties into a single loan; upgrading was not discussed.
While the transactions do not necessarily represent a trend toward refinancing senior-housing properties in the Portland market, Brunet tells GlobeSt.com, “Treasury rates are very attractive right now, near a 50-year low, which helps spur refinance activity for all real estate asset types. As with many real estate owners, the goal for most of our borrowers is to get to the permanent market and lock in today’s low rates as quickly as possible.”
Berkadia has been involved in other recent lending activity in Portland area. As GlobeSt.com previously reported, earlier this month the company’s local office closed a $23.02-million loan through the U.S. Department of Housing and Urban Development’s 221(d)(4) program for the construction of a multifamily property here. The loan was originated by Berkadia’s VP Rob Affleck at a 40-year fixed rate and featured an 83.3% loan-to-cost ratio and 40-year amortization.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
