CHARLESTON, S.C. — Lument has arranged a $24.5 million bridge loan to refinance construction debt for an assisted living and memory care community in Charleston.
Kevin Oakley and Steve McGee led the transaction for Lument.
The community opened during the pandemic, which caused the lease-up to proceed slower than anticipated. The bridge loan, placed with a national bank via Lument’s debt syndications group, refinanced high-cost construction debt that was nearing maturity and allowed the borrower time and flexibility to focus on operations.
“Completing this refinance via the bridge loan resulted in several benefits for the borrower, namely allowing them to reset the capital structure, release some of the equity partnership and buy time to complete the lease-up and achieve stabilization,” says Oakley.
The loan has a floating interest rate, five-year term with one-and-a-half years of interest-only payments and 25-year amortization. The capital structure also includes an $11.5 million mezzanine loan from an asset management firm.
The borrower is a large regional owner-operator with a large portfolio in the Southeast and the Carolinas.