Cambridge Realty Capital Companies reports an up-tick of interest in a conventional funding program that owners and operators of multi-facility congregate retirement apartments, assisted living facilities and nursing homes are using to refinance or acquire properties for existing portfolios or capitalize new construction.
Chairman Jeffrey A. Davis said the company’s Multi-Facility Plus conventional financing program offers competitive interest rates for loans of $10 million or more. Both non-recourse and recourse loans are available, depending upon the type of financing required.
“We’ve been receiving more and more inquiries about conventional financing and we’re working with clients to find conventional funding solutions that meet their specific needs,” he said.
For example, in the second half of 2013, Cambridge closed on a $65 million nine-facility refinance that was one of the largest conventional loan transactions incorporating first mortgage financing, leasehold financing and accounts receivable financing done in the country last year.
Davis says the Multi-Facility Plus program has been created by Cambridge in concert with Wall Street investors to specifically address the funding needs of clients with larger portfolios of five or more senior housing properties. The program is designed to offer lower interest rates, better overall loan terms, individual release provisions and more attention from investors.
Cambridge is one of the nation’s leading senior housing/healthcare lending specialists, with more than $5.5 billion in closed transactions. The company consistently ranks among the leading FHA-approved HUD 232 lenders, but Davis thinks it‘s important to offer clients different funding options.
“Often the HUD lending program is the best option, but in some situations it may not be. We urge clients to share their needs with us so we can better assess their unique situation and satisfy their needs,” he said.
The program is ideal for borrowers with existing high interest rates or those in equity or working capital cash-out situations.
Terms and conditions vary. For example, loans are available with terms ranging between seven and 30 years, with 20- to 30-year amortizations.
“Our goal with the Multi-Facility Plus program is to be competitive with rates across the board while providing multi-facility borrowers better overall loan execution and a much quicker and more timely response from investors,” Davis said.