Greystone Provides Seniors Housing Industry’s First-Ever Freddie Mac Lease-Up Loan
April 5, 2017
Greystone announced it has provided a $27,500,000 Freddie Mac loan for permanent financing after completion of construction for Oakmont of San Jose, a seniors housing community in Northern California. The transaction was originated by Scott Kavel, Neal Raburn and Cary Tremper of Greystone.
The financing for Oakmont of San Jose marks Freddie Mac’s first-ever Lease-Up Loan on a seniors housing property. The non-recourse Freddie Mac loan carries a term of 11 years with a fixed rate and 30-year amortization. Construction of the 66-unit / 72-bed assisted living and memory care community was completed in 2016, one of the newest additions to the renowned Oakmont Senior Living portfolio.
Nestled in the beautiful environs of Northern California, the Class A+ property offers residents exceptional quality, comfort and care combined with nearby city life conveniences and breathtaking natural settings. The Freddie Mac Lease-Up Loan provided a permanent financing exit from the original construction loan just over 3 months after the facility opened.
“With their immediate high occupancy and stellar developer reputation, Oakmont of San Jose was the first to take advantage of Freddie Mac’s solution to replace existing debt and remove interest rate risk,” said Mr. Kavel, Managing Director, Greystone. “We are thrilled to have provided the first-ever seniors housing Lease-Up Loan from Freddie Mac, and we value our long-standing relationship with both Oakmont Senior Living and Freddie Mac,” he added.
“Greystone is constantly showing us ways to execute on our financing needs, and the Freddie Mac Lease-Up Loan is just the latest in a number of products we’ve been able to utilize to meet our needs,” Joseph G. Lin, CFO, Oakmont Senior Living LLC.