Only the property's location and the financial strength of the borrower made the deal work, Collateral brokers say. "Due to the property location and operational strength of the borrower, Bear Stearns was able to fund the deal at full dollars," says Scott Kavel, director of Collateral's Senior Housing Group headquartered in Duluth, GA, outside Atlanta.

The loan is being amortized on a 20-year schedule. The deal was funded with a loan-to-value of 71% and a debt service coverage ratio of 1.43x. For Kavel and Collateral vice president Richard Thomas, the Georgia deal puts them over the $2-billion mark in mortgage and equity financing assignments for seniors housing and multifamily projects nationwide.

"The hard work and effort of the borrower, Bear Stearns and Collateral combined to make this deal work," says Thomas. The three-story, wood-frame Washington Commons building and five adjoining duplex garden cottages opened in July 1999 and are 95% occupied.

The 12.3-acre property is 10 miles northeast of Augusta, GA. The main building provides 98,527 sf of living area. The cottages provide an additional 12,500 sf of space, plus residential parking.