Seniors Housing Finance

Delivering customized bridge and permanent loan solutions for Senior Housing

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Seniors Housing Finance Programs

The silver tsunami is here, creating a tidal wave in seniors housing and the senior living markets. According to the U.S. Census Bureau, by 2030, all Baby Boomers will be 65 years and older. As boomers exit the workforce and prepare for retirement, there will be continued demand within the senior housing industry, from active adult communities and continuing care retirement communities to standalone, independent living facilities and assisted living memory care facilities. Boomers have a storied history of making their mark in the world and the senior living sector will be no different.

For the past 15 years, Wilshire Finance Partners has specialized in financing experienced owners and operators in senior housing. Whether that’s providing capital to owners and operators, sprucing up existing facilities with a competitive repositioning or strategic acquisitions of other nearby assisted living facilities, opportunities will continue to abound in the industry.

As senior housing lenders, Wilshire Finance Partners is a provides capital solutions in seniors housing ranging from $1 million to $10 million for various senior housing properties and projects. Using its balance sheet, Wilshire offers short-term loans to bridge the timing and financing needs of owners and operators of seniors housing facilities. For example, financing the transition from an opportunistic or value-add acquisition to a fixed, permanent financing solution like Fannie Mae (FNMA), Freddie Mac (FHLMC) or HUD Seniors Housing Loan.

As an assisted living facility lender, Wilshire finances various property types, including, continuing care retirement communities (CCRCs), memory care facilities, age- restricted housing, independent living, and other long- term care facilities.  

If you are an experienced owner or operator, or an operator who decides to become an owner in senior living, explore how you can finance your vision to serve seniors when traditional lending may not be an option. Talk with the sage advisors on our team to learn more about obtaining an assisted living facility real estate loan, or any other senior housing facility mortgage and the creative financing solutions available or read on for further information.

Looking for information on an assisted living facility real estate debt fund? Please visit our senior housing fund page.

Bridge Financing Structure Types

Bridge lending is short term or interim financing that a borrower generally uses until they secure permanent financing or sell the underlying real estate.

Bridge loans may be in a first lien or subordinate lien position. 

Unitranche facility or A/B Note structure is a form of bridge lending that uses a single loan agreement, a single promissory note, and a single deed of trust or mortgage.  The loan is contractually bifurcated or split using an Agreement Among Lenders or an Intercreditor Agreement creating a senior piece (the “Senior Tranche” or “A Note”) and a subordinate piece (the “Subordinated Tranche” or “B Note”).  Under this structure, there is a single lien against the collateral and the borrower has a single payment obligation. 

Unitranche loans use a single set of loan documents , which allows for quicker implementation.

Mezzanine debt is a type of subordinated bridge financing used to increase leverage in a real estate transaction. This type of debt generally fits between equity and real estate secured debt in the capital stack. It has priority of repayment over equity but is subordinate to the real estate secured debt. Mezzanine debt increases the ability to leverage returns.

Participating loans are structured as debt with equity-like economic attributes.  Participating loans may be secured in first lien position; however, participating loans are more frequently a type of subordinate financing used to increase leverage in a real estate transaction. When used as subordinated financing, this type of debt generally fits between equity and senior real estate secured debt in the capital stack. Participating loans produce the ability to increase leveraged returns at lower costs than preferred or common equity.

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Agency Financing Structure

Seniors Housing and Assisted Living Facility Loan Program Overview

Eligible Properties: Seniors Housing and Healthcare Real Estate

  • Independent living properties
  • Assisted living properties
  • Alzheimer’s/dementia Care
  • Newly constructed and stabilized Seniors Housing facilities, as well as campuses containing skilled nursing beds on a case-by-case basis
  • Properties must have at between 5 and 50 units
  • Properties must be stabilized, and can include manufactured housing communities
  • For acquisitions or refinances, loans must be first lien
  • Eligible borrowers must be single asset entities
  • No properties with entrance fees are allowed
  • Owner/operators must have at least 5 years successful experience in senior living communities, and must have owned/managed 5 or more senior housing properties

Loan Amount: Minimum of $5,000,000, with exceptions on a case-by-case basis

Loan-To-Value: 75% (80% for fixed rate tax-exempt bonds)

Rate Structure: Fixed and adjustable-rate options available

Term: 5 to 10 years (up to 30 years for fixed-rate loans)

Amortization: Up to 30 years

Recourse: Non-recourse with standard exceptions, including for fraud and misrepresentation

Prepayment Penalty / Lockout: Fixed Rate: Yield Maintenance or Standard Defeasance Graduated Prepayment Premium Floating Rate:12-month lockout followed by 1% prepayment penalty to open window

 

Seniors Housing and Assisted Living Facility Loan Program Overview

Eligible Properties: Seniors Housing and Healthcare Real Estate

  • Independent living properties
  • Assisted living properties
  • Memory care properties
  • Properties with a limited amount of skilled nursing (maximum 20% of NOI)

Loan Amount: Minimum of $5,000,000, with exceptions on a case-by-case basis

Loan-To-Value: Maximum 75% of appraised value, maximum of 80% for tax-exempt bond finance transactions.

Rate Structure: Fixed and adjustable-rate options available

Term: 5 to 10 years (up to 30 years for fixed-rate loans)

Amortization: Up to 30 years

Recourse: Non-recourse with standard exceptions, including for fraud and misrepresentation.

Prepayment Penalty / Lockout: Yield Maintenance or Standard Defeasance (Fixed Rate) Floating Rate: 12-month lockout followed by 1% prepayment penalty to open window Four prepayment option for floating rate loans

 

Seniors Housing and Assisted Living Facility Loan Program Overview

Programs:

  • HUD 232
  • HUD/FHA 223(a)7 Refinance
  • HUD 202

Eligible Properties: Seniors Housing and Healthcare Real Estate

  • Age restricted housing
  • Independent living properties
  • Assisted living properties
  • Medical office buildings

Loan Amount: $1,000,000 To $50,000,000

Rate Structure: Fixed and adjustable-rate options available

Term: Up to 35 Years

Amortization: Up to 30 years

Recourse: Non-recourse with standard exceptions, including for fraud and misrepresentation.

Prepayment Penalty / Lockout: Standard option is declining prepayment penalty through year 10 and then freely pre-payable thereafter. Flexibility on prepayment structure exists.

 

Seniors Housing and Assisted Living Facility Loan Program Overview

Eligible Properties: Seniors Housing and Healthcare Real Estate

  • Independent living properties
  • Assisted living properties
  • Memory care properties
  • Properties with a limited amount of skilled nursing (maximum 20% of NOI)

Loan Amount / Loan-To-Value: Up to 75% for Purchase / 70% on Refi

Rate Structure: 250-350 bps over index

Term: 5, 7, 10 yr. fixed / 20 yr. fix to float also available

Amortization: 25-30 yrs. and IO also available

Recourse: Non-recourse with standard exceptions, including for fraud and misrepresentation.

Prepayment Penalty / Lockout: Step down: 5,4,3,2,1

 

Seniors Housing and Assisted Living Facility Loan Program Overview

Eligible Properties: Seniors Housing and Healthcare Real Estate

  • Independent living properties
  • Assisted living properties
  • Memory care properties
  • Properties with a limited amount of skilled nursing (maximum 20% of NOI)

Loan Amount / Loan-To-Value: Up to 70% higher on exception basis on purchase / 65% on Refi

Rate Structure: 300-350 bps over index

Term: 10 Yr. fixed 5, 7 and 15 yrs. w/ balloon or 20 & 30 yr. self-amortizing

Amortization: 25-30 yrs. and IO also available on exception basis

Recourse: Non-recourse with standard exceptions, including for fraud and misrepresentation.

Prepayment Penalty / Lockout: Yield Maintenance, Step Down or Standard Defeasance

 

Seniors Housing and Assisted Living Facility Loan Program Overview

Programs:

  • SBA 504
  • SBA 7(a)

Eligible Properties: Seniors Housing and Healthcare Real Estate

  • Independent living properties
  • Assisted living properties
  • Memory care properties
  • Properties with a limited amount of skilled nursing (maximum 20% of NOI)

Loan Amount / Loan-To-Value: Up to 70% higher on exception basis on purchase / 65% on Refi

Rate Structure: 300-350 bps over index

Term: 10 Yr. fixed 5, 7 and 15 yrs. w/ balloon or 20 & 30 yr. self-amortizing

Amortization: 25-30 yrs. and IO also available on exception basis

Recourse: Non-recourse with standard exceptions, including for fraud and misrepresentation.

Prepayment Penalty / Lockout: Yield Maintenance, Step Down or Standard Defeasance

 

LOAN GUIDELINES

Frequently Asked Questions

Fannie Mae

  • Independent living properties
  • Assisted living properties
  • Alzheimer’s/dementia Care
  • Newly constructed and stabilized Seniors Housing facilities, as well as campuses containing skilled nursing beds on a case-by-case basis
  • Properties must have at between 5 and 50 units
  • Properties must be stabilized, and can include manufactured housing communities
  • For acquisitions or refinances, loans must be first lien
  • Eligible borrowers must be single asset entities
  • No properties with entrance fees are allowed
  • Owner/operators must have at least 5 years successful experience in senior living communities, and must have owned/managed 5 or more senior housing properties

Freddie Mac 

  • Independent living properties
  • Assisted living properties
  • Memory care properties
  • Properties with a limited amount of skilled nursing (maximum 20% of NOI)

HUD

  • Age restricted housing
  • Independent living properties
  • Assisted living properties
  • Medical office buildings

Wilshire offers bridge and permanent loan solutions for the purchase and refinance of Seniors Housing Facilities. 

Yes, Wilshire offers customized bridge and permanent financing for Senior Housing Facilities.

Yes, Wilshire works directly with all intermediates and ensures broker protection. 

Wilshire can close a loan in 15 to 45 days. 

Yes, Wilshire is a direct lender. The WFP Income Fund, LLC and The WFP Opportunity Fund, LLC are real estate debt funds and are the capital engine driving Wilshire’s bridge loan programs. 

Formed in 2008, Wilshire Finance Partners is a real estate debt fund manager that makes bridge loans secured by multifamily, commercial real estate, seniors housing facilities, and medical office buildings nationwide. Wilshire combines an entrepreneurial approach, institutional sophistication, and discretionary capital inside a boutique environment to deliver outstanding service to our origination partners and affiliates.

Proven

Real estate debt funds with discretionary capital to lend.

Professional

Experienced professionals representing various disciplines in real estate, banking and investments.

Performance

The team has funded and managed over $2 billion in commercial real estate loans.

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Related Transactions

Case Study

Seniors Housing | Strategic Acquisitions: Value-Add Opportunities

$5.4M Assisted Living Facility 

The Background: How small to medium-sized operators leverage acquisitions for dynamic growth. 

LEARN MORE
Assisted Living Facility Loand – Georgetown (Aggie House)
Assisted Living Facility

$2.85M

Core Plus Investment

homeimg Senior Housing Finance 32 units, 100% Occupancy 

Assisted Living Facility Loan
Assisted Living Facility

$5.4M

Strategic Acquisition, Value-Add

homeimg Senior Housing Finance 80 units, 89% Occupancy 

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© 2008-2023 Wilshire Finance Partners, Inc. All Rights Reserved.

DISCLOSURES: 

Loans: The information contained on this website and the related communications are directed to real estate professionals only.  The information contained on this website and the related communications are not a loan approval, agreement or commitment to lend. The delivery or circulation of any attached documents is for discussion purposes only and Wilshire Finance Partners, Inc. may make substantial and material revisions to the same.  Rates and terms are subject to change without notice.  Loans made by Wilshire Finance Partners, Inc. California Department of Real Estate Broker License number 01523207 and California Department of Financial Protection and Innovation, Finance Lenders License number 603K729; WFP Income Fund, LLC, California Department of Financial Protection and Innovation, Finance Lenders License number 603K726; WFP Opportunity Fund, LLC California Department of Financial Protection and Innovation, Finance Lenders License number 603K725; or WFP Income Fund REIT, LLC, California Department of Financial Protection and Innovation Finance License number 60DBO-99184. •Equal Opportunity Housing Lender•

Investments: The information contained on this website and the related communications are not an offer to sell or the solicitation of offers to purchase the securities of the WFP Income Fund, LLC, the WFP Income Fund REIT, LLC, the WFP Opportunity Fund, LLC, loan or trust deed investments, participations or other securities offered by or through Wilshire Finance Partners, Inc. (individually and collectively, the “Securities”).  The purpose of this website and the related communications is to provide an overview of the respective Securities and their private placement. Persons interested in learning about the Securities and their private placement will be provided with the respective Private Placement Memorandum (inclusive of exhibits thereto and any supplements, the “Memorandum”), which provides a description of the Securities, the terms of their private placement, a discussion of risk factors, a copy of the limited liability company operating agreement for the respective fund (as applicable), a subscription agreement and other information related to the Securities.

This website and the related communications contain certain forward-looking statements regarding the Securities and the investment objectives and strategies of each of the Funds. The forward-looking statements are based on current expectations that involve numerous risks and uncertainties which are difficult or impossible to predict accurately and many of which are beyond the control of Wilshire, as the manager of the Funds. Although Wilshire believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements, the inclusion of such information should not be regarded as a representation by Wilshire, any placement agent, or any other person, that the objectives and strategies of the respective Securities will be achieved.

Investments in the Securities may only be made solely by accredited investors (which for natural persons, are investors who meet certain minimum annual income or net worth threshold), who are provided with the Memorandum and who complete, execute and deliver the subscription documents included therein, and otherwise comply with the requirements contained therein.  Each of the Securities is being offered in reliance on an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act. Neither the Securities Exchange Commission nor any other state securities commission or agency has passed upon the merits of or given its approval to the Securities, the terms of the offering, or the accuracy or completeness of any offering materials. Each of the Securities is subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell the Securities. Past performance is not indicative of future results. Investing in any of the Securities, including the Funds, involves substantial risk, including loss of investment, and is not suitable for all investors.

To the extent there is any inconsistency between the information provided in this website. The related communications and the Memorandum, the information contained in the Memorandum shall control.

Other Notices: Information provided by Wilshire Finance Partners, Inc., its affiliates and their respective directors, managers, officers, employees and agents is not to be interpreted as legal, tax or accounting advice.  Wilshire Finance Partners, Inc. is a debt collector and is required by law to inform you that this communication may be an attempt to collect a debt and any information obtained will be used for that purpose.  Wilshire Finance Partners®, Proven Professional Performance®, Stable Income & Principal Protection®, and The Alternative Solution® are registered trademarks of Wilshire Finance Partners, Inc. © 2021 Wilshire Finance Partners, Inc.  All rights reserved.

 

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