New York, NY — Lument announced today that it closed bridge loans totaling more than $78 million to acquire or refinance four memory care facilities, totaling 311 beds, in Texas and Wisconsin. Managing Directors Doug Harper, Chris Mauger, and Casey Moore led the transaction for Lument.
The deal’s sponsor was Silverado, a large and experienced operator of dedicated memory care centers. It owns and operates communities throughout California, Kansas, Nevada, Maryland, Texas, Illinois, Virginia, Washington, and Wisconsin.
“I enjoyed working with Silverado to provide funding to fulfill their acquisition and refinancing goals,” said Harper. “Our financing allowed them to acquire the Barton Springs community, which they had been managing, and to replace high-rate mezzanine debt, reducing the overall cost of capital.”
The four loans were underwritten with a 36-month initial term and one-year extension, with earn outs for each loan and variable interest rates. The deal also positions Silverado for permanent financing through the U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) following the bridge loans.
“It has been a pleasure for our team to work with Lument during this financing process,” said Loren Shook, president and CEO of Silverado. “This added capital is very important to fueling future Silverado growth and development.”
The total acquisition loan amount, including initial principal and earn out, was $18.6 million to acquire Barton Springs, a 56-bed facility in Austin, Texas. The three refinanced loan amounts for initial principal and earn out include $21.1 million for Hermann Park, an 80-bed facility in Houston, Texas; $22.5 million for North Shore, an 84-bed facility in Glendale, Wisconsin; and $15.7 million for Southlake, a 91-bed facility in Southlake, Texas.
Lument is a national leader in commercial real estate finance and delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, real estate investment sales, investment banking, and investment management solutions. The company has approximately 600 employees in over 30 offices across the United States. Securities, investment banking, and advisory services are provided through Lument Securities, LLC, member FINRA/SIPC. Lument Investment Management, LLC, is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.