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.
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."
ABOUT MEECORP CAPITAL MARKETS
Based in Fort Lee, New Jersey, Meecorp Capital Markets is a commercial real estate lender providing fast, creative funding solutions nationwide. Meecorp provides bridge loans, mezzanine debt, construction financing (including land development) and occasionally even equity participation, and specializes in non-conforming transactions ranging from $1 million to $100 million and above. For more information visit http://www.meecorp.com.
ABOUT ASSET REAL ESTATE & INVESTMENT CO.
Asset Real Estate and Investment (AREI) is a diversified real estate holding company. AREI specializes in investment, marketing, development and management of real estate projects which range from business centers and mini-storage facilities, housing subdivisions to assisted care facilities, upscale homes and golf courses.
AREI operates in partnership with other developers, as well as creating new projects. These projects are funded through syndicates with equity partners. AREI also provides venture capital for selected new and existing businesses.
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|Date:||Aug 2, 2005|
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