McLEAN, VA-Last week New York City-based Greystone began offering financing through a new revolving credit facility Freddie Mac is offering for senior housing.
Greystone was the first senior housing seller/servicer for the GSE to offer the product but presumably won’t be the last as it is available to all 14 lenders who can sell US seniors housing loans. GlobeSt.com spoke with Freddie Mac’s Seniors Housing Director Steve Schmidt for more details.
GlobeSt.com: What led you to launch this product?
Schmidt: Actually senior housing has had a revolver product for a little over five years–the same as multifamily–but it never was very competitive. Then, some of the parameters changed to make it more competitive so we started aggressively marketing it.
GlobeSt.com: What parameters?
Schmidt: The terms became more viable for senior housing. LTV is now 75% compared to 65% and we put in place a no minimum occupancy requirement.
GlobeSt.com: What is the capacity of this program?
Schmidt: A lender can lend up to $150 million per borrower and lenders can do as many of these as they can.
GlobeSt.com: And any of your senior housing seller/servicers are eligible?
Schmidt: They all are. Right now about half of them are actively marketing this facility and we are getting calls from the others. Greystone was the first out of the gate with it but I would imagine others will follow.
GlobeSt.com: Can you tell me about other new products you might have under development for senior housing finance?
Schmidt: We had a very good year last year, but we don’t have any new products underway at the moment.