|DATE OF FUNDING||10-05-2017|
|GROSS LOAN AMOUNT||$2,488,700|
|LOAN TO VALUE||68%|
|NET NOTE RATE||10.95%|
|TERM OF INVESTMENT||12 Months with 6-month Lockout|
$2,488,700 FOR THE REFINANCE OF AN ASSISTED LIVING RESIDENCE IN KENNEWICK, WA.
The borrowers sought $2,488,700 for the refinance of a construction loan for a 28-unit assisted living residence in Kennewick, Washington. The newly built 11,770 square-foot property was completed in 2017 and is situated on a 0.96-acre site. The subject property has received their Certificate of Occupancy (CoO), but is waiting for final formal licensing from the Department of Health in the State of Washington. It is our understanding that this should be granted in the next 30 days. Currently they have a waiting list of clients and expect to stabilize the property by year’s end.
The market has been very active in construction which caused delays in completion. The exit strategy is to stabilize the property and improve credit to obtain conventional or SBA financing within 6-12 months.