Funding Purpose
Tauro Capital Advisors, Inc. was engaged on an exclusive basis to source senior debt, junior debt, and joint venture equity for the development of 2 adjacent medical properties leased by WelbeHealth and Fresenius.
Property Description
The 39,250 SF project sits on 5.25 acres and is 100% pre-leased/built-to-suit for WelbeHealth and Fresenius Medical Care. WelbeHealth is a Program of All-Inclusive Care for the Elderly (PACE).
Sponsors
The sponsor is a CRE firm headquartered in Sacramento specializing in brokerage, development, and property management. The CEO has over 10 years of experience.
Challenges
- Tauro was tasked with building the entire capital stack for this opportunity.
- Unfamiliarity in the market surrounding the PACE program and strength of the operator presented challenges in attracting financing.
Solutions
- Using Tauro’s vast database, advisors were able to find a national bank for the senior debt and a true like-minded joint venture partner to fund the remainder of the capital stack.
Funding
- Senior Debt (LTC): $13,250,000 (65%)
- Junior Debt: $6,000,000
- JV Equity: $1,000,000
- Interest Rate: SOFR + 3, 3 Yr T + 2.75
- Amortization: IO then 25 Years
- Term: 2 Years, 3 Year Option
- Prepayment:1% during year 1 of extension
- Close Date: 8/14/2023
