ST. LOUIS—Berkeley Point Capital recently closed the $14.98 million refinancing of Cedarhurst of Shiloh, a 95-unit seniors housing community located in Metro East suburb of Shiloh. Seniors housing has become one of the more vibrant sectors in real estate as providers expand to meet escalating demand, and in this case the cash-out refinancing will help add two new cottages to the community. Bethesda, MD-based Berkeley structured the deal as a cash-out fixed-rate Freddie Mac 10-year loan term with a period of interest only, and was able to incorporate the plans for two new cottages into the loan structure.
Cedarhurst opened in 2011 and consists of one three-story assisted living and memory care building as well as two existing independent living cottages containing two units each. The area has a number of prominent healthcare providers beneficial to the community and market. St. Elizabeth's Hospital plans to build a $300 million, 114-bed replacement facility in nearby O'Fallon, IL, and Memorial Hospital has already started construction of a 94-bed hospital near the Cedarhurst property.
“Cedarhurst of Shiloh is an important part of our organization and also the community of Shiloh, so this transaction was significant to us,” says Joshua Jennings, chief executive officer of Dover Capital, LLC and Dover Development, LLC. Jennings, through an affiliated entity, is an owner and member manager for the borrower. He also owns and develops other senior living communities in the region. Frontier Management, LLC manages Cedarhurst of Shiloh. This is Berkeley's first financing with Jennings.
“We appreciate the opportunity to work alongside Freddie Mac to start a relationship with Dover, as well as continue to grow our relationship with Frontier Management,” says Doug Harper, the director who led the Berkeley team. “This Freddie Mac loan enabled the owners to take advantage of a low fixed interest rate environment to significantly lower their cost of capital, while at the same time it provided cash-out proceeds to assist in their future development plans.”
“We look forward to growing steadily over the next few years and we'll continue to look at Berkeley Point and Freddie Mac as great resources for that growth,” adds Jennings.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
