TEXAS — Live Oak Bank has provided a $10 million conventional loan for the acquisition and renovation of a 90-unit assisted living and memory community.
The name and location were not disclosed, though the lender noted the property is “in a significant Texas market.” The borrower is a private investment firm.
The property was built less than three years ago when the local market had experienced material supply increases. As a result, the developer’s lease-up was slow, and the project was burdened with operating losses for an extended period. The well-capitalized buyer is acquiring the project from the original developer for below cost basis and will introduce new management with a multi-year plan to stabilize the project.
The balance-sheet loan features a 70 percent loan-to-value ratio, five-year term, interest-only period and flexible prepayment options.