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Columbia Pacific Advisors Provides $6.225 Million Loan to Refinance Memory Care Facility in Arizona
The 24-month, interest-only financing, which includes a 12-month extension, is secured by Catalina Springs Memory Care, a 48-unit, 56-bed memory care center. The sponsor, President and CEO of Frontier Management, Greg Roderick has been in the industry for more than 25 years. Frontier Management, which currently operates more than 80 seniors facilities in 12 states, is actively seeking to grow their portfolio through development and management contracts.
By refinancing the existing construction loan, Frontier will be able to free up construction financing for the next development project in their pipeline. The bridge loan also will provide Frontier Management the time needed to stabilize the property and obtain permanent financing, according to Billy Meyer, managing director of real estate lending for Columbia Pacific Advisors.
"Lease-up challenges are a common issue in the seniors space – stabilization is taking much longer than expected," said Meyer. "We were comfortable and enjoyed working with Greg and Frontier because of their industry expertise and ability to execute."
Frontier expects to pay off the loan within 18 months. At loan closing the underwritten LTV was 66% and at stabilization is 56% LTV.
"I chose Columbia Pacific because of their reputation, deep understanding and appreciation of the seniors space, and their certainty of closing," Greg Roderick stated. "Once I started speaking with them, I knew they understood the challenges in the space while still being able to close in our timeframe. The loan closed earlier than expected and the communication since closing has exceeded expectations. Since the bridge loan has been put into place, the facility has been leasing up quickly. I would definitely utilize CPA again."
About Columbia Pacific Advisors
Columbia Pacific Advisors (http://www.columbiapacific.com) is a Seattle, WA-based investment firm with more than $2 billion in assets under management1. Through its real estate bridge lending platform, Columbia Pacific Advisors provides short- to intermediate-
1. As of December 30, 2017
About Frontier Management
Frontier Management (https://frontiermgmt.com/
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