For senior housing properties including IL, AL, and AL with Alzheimer’s
PNC ARCS and Fannie Mae offer a Seniors
Housing Product that provides flexible financing for Independent
Living/Congregate Care (IL) and Assisted Living Facilities (AL) and/or Assisted
Living with Alzheimer’s (ALZ). The Seniors Product will finance up to 75% of the
property value with a fixed rate mortgage for terms of 10 to 30 years. Pooled
transactions for seasoned properties with experienced owners and operators are
also eligible at fixed and/or floating rates. The benefits of the Fannie Mae
Seniors Housing Product include supplemental mortgages, balloon and fully
amortizing mortgages, credit enhancement of existing fixed and variable rate
bonds, and competitive pricing.
PNC ARCS is one of America’s leading
commercial lenders with an acknowledged expertise in multifamily finance and one
of America’s leading Fannie Mae DUS™ lenders for more than a decade.
As a PNC Real Estate Finance Company,
PNC ARCS is part of PNC Financial Services, one of the largest diversified
financial services companies in America. Now PNC ARCS can provide access to debt
and equity financing, construction loans, permanent financing, forward
commitments, tax credits, direct bond purchase programs, mezz, bridge, Fannie
Mae, Freddie Mac, FHA and Capital Markets. One single source to meet our
borrowers’ needs.
The company is now the single source for all real estate financing across the full range of commercial property types.
Beyond the benefits of any specific
lending product, PNC ARCS’ experience, expertise and unwavering commitment to
extraordinary customer service are what set us apart from the rest. No one
delivers more.
Product Overview
Eligibility Properties classified as Independent Living/Congregate Care and Assisted Living.
Facilities with more than 20% skilled nursing units are not eligible.
Loan Amounts $5 million minimum. No maximum.
Term/Amortization 10 to 30 year terms
30 year amortization
Interest Only available
Interest Rates Fixed and adjustable rates available
Debt Service Coverage Ratio 1.30x min
(IL )
1.40x min (AL/ALZ)
Waiver considered for special circumstances
Loan to Value 75% maximum (standard)
80% maximum (tax-exempt bonds)
Personal Recourse Non-recourse with standard "Carve-Outs" and Key Principal obligations
Prepayment Yield/fee
maintenance, defeasance or graduated prepayment
Origination Fee 1% or less when applicable
Commitment Fee 2% (refundable)
Third Party Fees Includes legal, appraisal, engineering, environmental, regulatory compliance and
consultants reports. Seismic reports and survey may also be required.
Minimum Occupancy Requirement Sustained occupancy below 90% will be considered on a case-by-case basis.
– 90% sustained for 12 months for IL
– 90% sustained for 15 months for AL and ALZ
Replacement Reserve Impounds Required - not less than $300/unit
Taxes and Insurance Impounds Required
Assumability Assumable with lender approval and a 1% fee
Supplemental
Mortgages Available after 1 year. Up to 2 available, plus 1 more upon sale and assumption. $500,000 minimum.