A well-established California-based senior living developer had recently completed a new assisted-living/memory care facility. As their construction note approached maturity, they began the process of seeking a bridge-to-HUD facility. However, as the months went by, the sponsors were only able to receive one offer by the time they engaged Gumption. With a tight timeline, we were able to place the request with a large regional bank in just 3 days.
The winning lender provided a bridge-to-HUD facility that gives the borrower an option to convert to HUD financing at their desired point during the bridge, provided DSCR thresholds are met. Terms for both the bridge and the HUD option are below.
Deal snapshot
| Metric | Bridge Terms |
|---|---|
| Property type | Healthcare - Assisted Living |
| Deal type | Bridge |
| State | California |
| Loan amount | $24.5M |
| LTV | 75% |
| Rate | 5.69% fixed |
| Term | 36 months interest-only |
| Lender fee | 1.00% |
| Winning lender type | Bank |
| Metric | HUD Terms |
|---|---|
| Rate | 5YT + 200bps |
| Term | 10 years |
| Amortization | 30 years |
| Min DSCR | 1.35x |
How Gumption secured the best terms
Those who have been following us since we started know that historically, most of what we've closed has been smaller projects of $1-10M in the Southeast. This is one of the largest deals we've ever closed, and our first in California, with many more soon to come. For the past year, we've been hard at work building out a nationwide lender network, and so while California is a newer market for us, our platform was more than up to the task.
Financing a senior living property? Get Gumption to match your deal with the best lenders from our network of ~900 banks, credit unions, and private lenders.