Varenna At Fountaingrove
Lending - Freddie Mac - $58.3M
Greystone 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 Lockproduct, 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 loanproduct is a fantastic option for stabilized seniors properties to securelong-term financing,” said Scott Kavel, Managing Director of Greystone’sSeniors Housing Team. “As there is always a level of risk with a securitizedloan execution, the borrower certainlyachieved upside by utilizing the Index Lock with this transaction, saving over50 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’rethrilled that the Freddie Mac Index Lock product was executed flawlessly byGreystone, virtually eliminating any rate risk during the processing of thetransaction,” said Joe Lin, CFO, Oakmont Senior Living.