Greystone Provides $58 Million Loan for Santa Rosa Seniors Community
August 17, 2015
Freddie Mac Index Lock Loan Enabled Borrower to Save Over 50 Basis Points on Securitized Loan
Greystone announced it has provided a $58,340,000 Freddie Mac loan to refinance Varenna at Fountaingrove, a 163-unit independent living facility owned and operated by affiliates of Oakmont Senior Living.
The 10-year loan was funded via Freddie Mac’s Index Lock product, which enabled the borrower to take advantage of the existing 10-Year Treasury rate prior to commitment. This is the second Freddie Mac capital markets execution Greystone has provided for the borrower to date, in addition to the assets Greystone has previously funded into a separate $150 million Freddie Mac Credit Revolver.
Varenna at Fountaingrove, located in Santa Rosa, California, offers residents gourmet dining, concierge services, activity rooms, a salon, day spa services, a private theater, walking paths, gardens, and a wellness center. Nestled in Sonoma County, the community is reminiscent of its namesake in Italy, with gorgeous views and surroundings.
“The Freddie Mac securitized loan product is a fantastic option for stabilized seniors properties to secure long-term financing,” said Scott Kavel, Managing Director of Greystone’s Seniors Housing Team. “As there is always a level of risk with a securitized loan execution, the borrower certainly achieved upside by utilizing the Index Lock with this transaction, saving over 50 basis points in rate movement during underwriting.”
“As one of our marquis assets, Varenna now benefits from 10-year financing at an attractive rate, and we’re thrilled that the Freddie Mac Index Lock product was executed flawlessly by Greystone, virtually eliminating any rate risk during the processing of the transaction,” said Joe Lin, CFO, Oakmont Senior Living.