SAN DIEGO — PSRS has arranged $2.6 million in acquisition financing for Melroy Investments, which will use the funds to purchase a three-story, 26-unit seniors housing community in San Diego’s North Park neighborhood.
The total purchase price was $5.1 million. The property is restricted to those over the age of 55. The name of the property was not disclosed.
In addition to the $2.6 million loan, PSRS included $700,000 in “earn outs” for hitting certain benchmarks as far as rent growth. If earned, Melroy will use that money for property improvements and future acquisitions.
The nonrecourse loan features a 4 percent fixed rate and three years of interest-only payments.