SHILOH, Ill. – Berkeley Point Capital closed the refinancing of Cedarhurst of Shiloh, a 95-unit seniors housing community located in Shiloh, Ill.
The cash-out refinancing was structured as a fixed-rate Freddie Mac 10-year loan term with a period of interest only.
Cedarhurst of Shiloh opened in 2011 and consists of one three-story assisted living and memory care building as well as two independent living cottages containing two independent living units each. The community totals 91 units.
Given the facilities’ strong performance and demand, the owners are adding two new cottages, which is incorporated into the loan structure. The community and market will be further benefited by St. Elizabeth’s Hospital, which plans to build a $300 million, 114-bed replacement facility in nearby O’Fallon, Ill., in addition to Memorial Hospital’s current construction of a 94-bed hospital located within close proximity to Cedarhurst of Shiloh.
This is Berkeley Point Capital’s first financing with Joshua Jennings, CEO of Dover Capital, LLC and Dover Development, LLC. Jennings, through an affiliated entity, is an owner and member manager for the borrower as well as a regional owner and developer of quality senior living communities. Cedarhurst of Shiloh is managed by Frontier Management, LLC, which also has a longstanding history in seniors housing operations.
“This Freddie Mac loan enabled the owners to take advantage of a low fixed interest rate environment to significantly lower their cost of capital, while at the same time it provided cash-out proceeds to assist in their future development plans,” says Doug Harper, the director who led the Berkeley Point team on the deal.
“Cedarhurst of Shiloh is an important part of our organization and also the community of Shiloh, so this transaction was significant to us,” says Jennings. “The team at Berkeley Point handled it very professionally. We look forward to growing steadily over the next few years and we’ll continue to look at Berkeley Point and Freddie Mac as great resources for that growth.”