Hunt Mortgage Group Closes First Bridge Healthcare DealNew York, NY — September 18th, 2015
Hunt Mortgage Group, a commercial real estate lender, announced today it has closed its first loan in the healthcare sector through its Proprietary Loan Group, the firm’s new balance sheet lending platform launched earlier this year.
Hunt Mortgage Group provided a bridge loan in the amount of $8.85 million to refinance Autumn Leaves of Rockwall, an assisted living facility located in Rockwall, Texas. The borrower is Rockwall Memory Care, LLC, a Texas limited liability company. The parent company is The LaSalle Group out of Irving, Texas. The loan terms include a 24-month term, plus one 12-month extension option.
“The proprietary loan platform was created to extend our balance sheet lending capability to finance commercial properties in a variety of asset classes,” explained Greg Calvert, Senior Managing Director and Chief Credit Officer at Hunt Mortgage Group. “We are pleased to close our first healthcare deal through the program.” Other asset classes the proprietary lending group services include manufactured housing, office, retail, industrial and self-storage facilities.
Autumn Leaves of Rockwall is a 26,245 square foot assisted living facility that is licensed for 50 beds. The facility was built in 2011 and is a one-story building located on a 3.187-acre parcel of land.
“Autumn Leaves of Rockwall opened in December 2011 as a dementia assisted living facility, quickly leased to stabilization in mid-2013, but took a dip in 2014 after a new competitor opened in the same market,” explained James Neil, Director of Healthcare Lending at Hunt Mortgage Group. “In 2015, LaSalle successfully regained market share and the subject occupancy has rebounded. As of mid-summer, occupancy reached 91% and management is projecting stabilization shortly. Pretty remarkable,” says Neil.
This market tends to be very discriminating about the physical plant and operator they choose,” added Neil. “The LaSalle Group specializes almost exclusively in dementia facilities and has significant expertise in the management of this highly-specialized care model. The plan is to take the loan to HUD prior to maturity of the bridge loan. We were pleased to deliver this bridge loan to a quality, specialized sponsor.”
The LaSalle Group has 27 existing facilities and 15 under construction. Autumn Leaves of Rockwall hosts four private floor plans and two semi-private floorplans. The living units are located in residential wings originating outward from the central core and are accessed via fully heated and cooled interior hallways. Parking is furnished via 29 surface spaces on concrete paved parking, including numerous handicap spaces. The common areas include a central dining room, several activity centers, salon, craft/exercise center, and library.
The Hunt Mortgage Group deal team involved in the financing included Neil, who served as originator, and Jenifer Williams, who led the underwriting team.
million bridge loan
Hunt Mortgage Group
Hunt Mortgage Group, a wholly owned subsidiary of Hunt Companies, Inc., is a leader in financing commercial real estate throughout the United States. The Company finances all types of commercial real estate: multifamily properties (including small balance), affordable housing, office, retail, manufactured housing, healthcare/senior living, industrial, and self-storage facilities. It offers Fannie Mae, Freddie Mac, HUD/FHA in addition to its own Proprietary loan products. Since inception, the Company has structured more than $21 billion of loans and today maintains a servicing portfolio of more than $12.5 billion. Headquartered in New York City, Hunt Mortgage Group has 191 professionals in 22 locations throughout the United States.