Greystone Provides $58M Freddie Mac Loan for California Senior Housing Community
Damian Ghigliotty Aug. 13, 2015, 3:10 p.m.
The national real estate lending, investment and advisory firm Greystone closed a $58.3 million Freddie Mac loan to refinance a 163-unit independent living community in Santa Rosa, Calif., Commercial Observer has learned.
The 10-year loan on Varenna at Fountaingrove, owned and operated by affiliates of Oakmont Senior Living, was funded through Freddie Mac’s Index Lock product, enabling the borrower to take advantage of the current 10-year Treasury rate prior to commitment. As a result, Oakmont Senior Living saved more than 50 basis points on the securitized loan, according to the lender and borrower.
“As one of our marquis assets, Varenna now benefits from 10-year financing at an attractive rate, and we’re thrilled that the Freddie Mac Index Lock product was executed flawlessly by Greystone, virtually eliminating any rate risk during the processing of the transaction,” Joe Lin, Oakmont Senior Living’s chief financial officer, said in prepared remarks provided to CO.
The deal marks the second Freddie Mac capital markets execution that Greystone has provided for the sponsor to date.
Varenna at Fountaingrove, located at 1401 Fountaingrove Parkway in Sonoma County, offers its residents dining, concierge and day spa services, activity rooms, a salon, private theater, walking paths, gardens and a wellness center.
“The Freddie Mac securitized loan product is a fantastic option for stabilized seniors properties to secure long-term financing,” said Scott Kavel, managing director of Greystone’s Seniors Housing Team. “As there is always a level of risk with a securitized loan execution, the borrower certainly achieved upside by utilizing the Index Lock with this transaction.”