|MEECORP Capital Markets Funds $3.8 Million Mezzanine Loan Toward the Purchase of Colonnade and Wood River Senior Housing Facilities in Schwenksville and Bensalem, PA
Fort Lee, New Jersey -- Meecorp Capital Markets, a privately owned commercial real estate lender and investment banker specializing in value-added commercial real estate projects, today announced it has closed a three-year $3.8 million mezzanine loan for the purchase of the 94-unit Colonnade of Schwenksville and 358-unit Wood River Village senior housing facilities in Schwenksville and Bensalem, Pennsylvania, respectively. The funding was made to affiliates of Redding, California-based Asset Real Estate & Investment Co. (AREI), a diversified real estate holding company.
Meecorp approved the three-year $3.8 million mezzanine loan with a mezzanine debt to equity ratio of nearly 60 percent and a combined loan to value approaching 87 percent.
According to Daniel Edrei, director at Meecorp Capital Markets, "there are situations where, through no fault of their own, credit-worthy borrowers have difficulty finding traditional financing for senior housing facilities. However, this was one situation where we were able to quickly close because of AREI's successful track record of turning around under performing senior housing properties and the merits of the properties were favorable."
The Colonnade and Wood River senior housing facilities have a combined 433 units with an average occupancy rate of 93%, generating close to $14.6 million in revenue and almost $2.6 million in net operating income.
"Timing was crucial to the consummation of this acquisition and Meecorp was able to get the deal done in the tight timeframe we were facing," says Peary D. Wood, chief operating officer, AREI. "They were prompt in responding to our needs, and made the closing of this transaction possible."