StackSource successfully sourced a 10 year (30 year amortization) construction take-out loan for a behavioral health facility for senior citizens in Phoenix, Arizona. This is the second completed property in a planned portfolio of 16 similar projects across Arizona, Nevada, Utah, and Colorado, with the third currently under construction in Las Vegas. This building is larger than the original prototype and contains 18,000 sf and 40 beds. Residents stay an average of 6 weeks.
Beth Mercante of StackSource worked alongside an affiliate broker to complete the underwriting, structure, and arrange the financing. The $8 Million senior loan was funded by a Community Development Financial Institution. The initial rate of 6.5% is fixed until a 1.25 DSCR is achieved, unlocking a lower rate. The loan has a step down prepayment penalty for first 3 years.