The Academy Apartments was a unique opportunity for our client. The property was being operated as an independent and assisted living facility. It wasn?t profitable and they couldn?t make the numbers work keeping it as such. It is quite rare that senior facilities are converted to multifamily. The opposite is more the norm, but that was the play here. Because of that, there were very few lenders in the marketplace who were willing to take on this type of project at terms that would work for the client. Their strategy was to completely upgrade the property and convert to multifamily as a value-add repositioning of the asset. After presenting the deal to over 50 lenders, Bonneville secured an 80% LTC bridge loan for the client at Libor + 395 for the client who was very pleased with the deal. The Academy Apartments was a unique opportunity for our client. The property was being operated as an independent and assisted living facility. It wasn?t profitable and they couldn?t make the numbers work keeping it as such. It is quite rare that senior facilities are converted to multifamily. The opposite is more the norm, but that was the play here. Because of that, there were very few lenders in the marketplace who were willing to take on this type of project at terms that would work for the client. Their strategy was to completely upgrade the property and convert to multifamily as a value-add repositioning of the asset. After presenting the deal to over 50 lenders, Bonneville secured an 80% LTC bridge loan for the client at Libor + 395 for the client who was very pleased with the deal.
