Date: April 2019
Financing Amount: $51.5 million
Financing Type: Permanent loan
Property Type: Independent living, assisted living and memory care community
Location: Naples, Florida
Working with Freddie Mac under the agency’s new CME Lease-Up program, PNC Real Estate has delivered a $51.5 million permanent loan for the 187-unit All Seasons Naples, a newly constructed, Class A seniors housing property offering a full continuum across independent living, assisted living and memory care.
The program allows borrowers to lock in a rate and fund a loan before the collateral is fully stabilized. It’s especially useful for seniors housing, which historically has a relatively slower lease-up rate.
The innovative transaction provided the permanent loan to sponsor Beztak when the property was leased at just 75% with the requirement that it be fully stabilized within a year of closing.
Beztak, an established Freddie Mac and PNC client, is a second generation multifamily/seniors housing developer and operator with a 50-year track record and more than 15,000 units developed in several states.
Beztak’s All Seasons brand is a best-in-class developer, owner and operator of seniors housing in a number of states. The community offers affluent seniors an exceptional level of service, culture, amenities and life enrichment, with a focus on fine arts. Residents enjoy common areas inclusive of a multi-story grand living room, several restaurant-style dining venues, a sunset lounge and bar, library, wine room, educational spaces, technology lounge and library, theater, fully equipped salon and spa, an arts and crafts room and more.
Assisted Living and Memory Care spaces within the building offer the same level of finishes, with dedicated dining and life enrichment spaces, while all residences benefit from exterior amenities including a resort-style pool and a large pond with a private boardwalk and gazebo.
The sponsor turned to PNC due to the bank’s broad seniors housing finance capabilities for both construction and permanent lending. The bank demonstrated its broad capabilities in the specialty asset class and its institutional knowledge of seniors housing assets and their lease-up expectations, to work quickly and efficiently toward closing. PNC had also provided construction financing for the community as well as the sponsor’s All Seasons of Oro Valley.
Sam Beznos, CEO and partner at Beztak, noted:
PNC has proven itself in prior transactions. In the case of All Seasons, they enabled us to lock in a long-term fixed rate and delivered maximum proceeds in a short amount of time.