Source: National Health Investors / #Senior #Housing
ISSAQUAH, WA - National Health Investors announced it has finalized a previously disclosed agreement to lend up to $154.5 million to recapitalize and finance the expansion of Timber Ridge at Talus, an entrance-fee senior living community in Issaquah, Washington.
Serving the greater Seattle area, Timber Ridge at Talus is currently 95% occupied and the new expansion is over 80% presold. The existing campus was built in 2008 and has 184 independent living apartments and 36 transitional care beds. Expansion construction is expected to begin upon closing and to add 145 independent living apartments, 26 assisted living/memory care apartments and 9 transitional care beds, in addition to a swimming pool, dining room, fitness center and other amenities.
“This Class A community is managed by Life Care Services, a Life Care Companies subsidiary which is one of the most respected, experienced and largest operators of continuing care retirement communities. NHI is thrilled with the opportunity to make this high quality investment which is representative of our desire to partner with best-in-class operators,” said Justin Hutchens, NHI’s CEO and President.
The borrower is a joint venture between Westminster Capital and Life Care Holdings, LLC . The loan is divided into two notes under one master credit agreement. The $60 million senior loan (Note A) has a 10-year maturity and 6.75% interest rate that escalates 10 basis points per year after the third year of the loan. The $94.5 million construction loan (Note B) has a 5-year maturity and an 8% interest rate.
NHI funded an initial amount of $33.1 million on Note A at closing, and the remaining loan commitment is expected to be funded over the next 20 months. This loan was funded from borrowings on NHI’s revolving credit facility.