Dealmaker: Grandbridge Funds $58M for Multifamily/Seniors Housing

Grandbridge Real Estate Capital closed $58 million to refinance a New York seniors housing community and an Ohio multifamily property.

Grandbridge’s Atlanta-based Seniors Housing and Healthcare Finance team closed a $49,200,000 refinance loan secured by Brightview Lake Tappan, a 143-unit IL/AL/MC seniors housing community in Orangeburg, N.Y. Funding for the loan was arranged through Fannie Mae.

Kensington Village Apartments.

Grandbridge also financed an $8.5 million refinance loan secured by Kensington Village Apartments Phase I, a 156-unit multifamily property in Zanesville, Ohio. Ken Bowen, Senior Vice President, and Ben Williams in Grandbridge’s Columbus office originated the loan. Financing for the fixed rate nonrecourse loan was provided by Freddie Mac.

“This was a low leverage transaction with very attractive collateral, the newest project in the market with very strong operating history and excellent sponsorship,” Bowen said. “While some lenders did not like the market’s small size, it was perfect for a Freddie Mac execution in that it fully met their mission to finance housing that is affordable to people earning less than the area median income.

Bowen said financing only one of two adjoining phases was not much of a challenge due to commonality of ownership, conservative loan amount and shared amenities being located within the phase being financed. He said navigating Freddie Mac COVID-19 related inspection requirements was accomplished in a safe manner enabling us to deliver a full underwriting package during the pandemic with no outstanding due diligence items. The biggest challenge was getting the low spread to beat the competition and locking in the interest rate before it rose any further.

This market-rent community was developed by the borrower in 2007-2008. The 21.3 acres is improved with 26 1-story apartment buildings and a clubhouse with outdoor pool. Each building has six units, all with attached garages.