Greystone closes on senior housing sector's first-ever Freddie Mac revolving credit facility

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A California long-term care provider has become the first to obtain financing through a new revolving credit facility for senior housing offered by Freddie Mac.

New York-based finance company Greystone closed the $150 million facility on behalf of Oakmont Senior Living, Greystone announced Tuesday. Oakmont — which provides independent living, assisted living and memory care in Chino Hills, CA — funded a $29 million loan as the first transaction under the facility.

Freddie Mac, a government-sponsored entity, has provided this type of facility for multifamily housing, but this marks its introduction in senior housing.

“Freddie Mac worked with us to close their first-ever seniors housing revolving credit facility in just 45 days from our initial concept meeting,” said Scott Kavel, head of Greystone's senior housing finance group. “With the enhancements that have been made to the product, the Freddie Mac revolving credit facility merits serious consideration by borrowers as an attractive part of their overall financing strategy.”

The facility's advantages include a competitive interest rate pegged to LIBOR, the rate set daily by the British Bankers' Association, and no minimum occupancy requirements. Futhermore, “borrowers can continue to borrow against increased values and income created in the properties, up to the maximum amount of the facility,” Greystone noted in a press release.