McLEAN, VA- Greystone, a provider of multifamily and healthcare mortgage loans that also became a national senior housing seller/servicer for Freddie Mac last May, is the first to offering financing through a new revolving credit facility the GSE is offering for senior housing lending.

Greystone’s first transaction under the $150 million facility was a $29 million loan for Oakmont Senior Living of Chino Hills, CA.

A Freddie Mac spokeswomen confirmed to GlobeSt.com that this is the first time one of its credit facilities have been used for senior housing. They are typical in the multifamily space.

The senior housing facility is a very attractive program, Neal Raburn, managing director of Greystone, tells GlobeSt.com.

“It allows for continuous funding of assets into and out of facility with no minimum occupancy requirement,” he says, noting that most lenders require some threshold. Instead, the Freddie Mac facility funds based on cash flow.

Borrowers are expected to season their properties through upgrades or leasing and then finance out using conventional loans.

“This is a facility that allows for repositioning or stabilization of assets that then will result in permanent financing of those same assets,” Raburn explains.

The facility also offers low rates and an interest-only term “to provide maximum cash flow from the operation to the asset of the client.” The floating rate is indexed to LIBOR, and allows for up to 75% leverage and an interest-only DSC of 1.50x for independent living and 1.60x for assisted living, at a stressed sizing rate.

The minimum loan amount for the facility is $50 million although borrowers can provide additional assets to be financed in the facility to meet that threshold.

Raburn says Greystone is actively working with the first borrower to add additional assets to the facility. “We are working with several other clients regarding this facility and approaching new clients as well.”