Capital markets

Permanent debt

Permanent debt is the loan you live with. We help owners and buyers compare banks, agencies, life companies, CMBS and government-backed programs on the terms that matter over the life of the loan.

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Brokered by eXp Commercial, LLC · CCGX arranges and advises on financing; loans are provided by third-party lenders · Subject to lender approval · Not a commitment to lend

What it is

Long-term debt for stabilized property, including refinance and HUD or SBA programs where applicable.

Permanent debt is long-term financing on a stabilized property. It is used to acquire, to refinance an existing loan, or to take out construction or bridge debt once the property has the operating history to qualify.

Which source fits depends on the asset, its size, the sponsor and how much flexibility you need. A bank portfolio loan, an agency seniors housing loan, a HUD-insured loan and an SBA loan can all be the right answer for different properties.

When it fits

Signs this is the right tool.

  • The property is stabilized and has operating history a lender can underwrite.
  • An existing loan is maturing, or its terms no longer fit the business.
  • Construction or bridge debt is ready to be replaced.
  • You want to refinance for a better structure, or to return capital to owners.

Typical structure

How it is usually put together.

Described in general terms. Actual structure, pricing, leverage and terms are set by each lender or capital partner for each transaction.

Bank and credit union portfolio loans
Often the fastest to close and the most negotiable. Footprint and hold limits decide who can do the deal.
Agency seniors housing
Fannie Mae and Freddie Mac seniors housing programs for stabilized independent living, assisted living and memory care. Operator experience and census stability drive proceeds.
Life company
Low-leverage permanent debt for high-quality assets. Selective, and many smaller facilities will not fit.
CMBS
Non-recourse fixed-rate debt for larger stabilized assets. Prepayment terms and servicing are rigid once closed, so read them before you sign.

Where applicable

HUD and SBA programs

Government-backed programs can offer structures conventional lenders do not, but each has its own eligibility rules, documentation and timeline. Whether one applies depends on the property, the borrower and the program's current requirements.

HUD Section 232
FHA mortgage insurance for licensed residential care, including assisted living and skilled nursing. Covers new construction and substantial rehabilitation, acquisition or refinance of existing facilities under 232/223(f), and streamlined refinance of existing HUD-insured loans under 223(a)(7). Non-recourse and long-term, with the longest process of any option here. Plan the timeline around it.
SBA 7(a)
Government-guaranteed loans made by participating lenders for owner-operators, including acquisitions that combine real estate and an operating business, and partner buyouts. Owner-occupancy rules apply and personal guaranties are standard.
SBA 504
A bank first loan paired with a Certified Development Company second loan for owner-occupied real estate and long-lived equipment. Owner-occupancy and program policy requirements apply.
USDA Business and Industry
Guaranteed loans for facilities in eligible rural areas. Location eligibility is the first question.

Program availability, eligibility and terms are set by the agencies and participating lenders and change over time. CCGX does not determine eligibility and is not a HUD, SBA or USDA lender.

Underwriting

What lenders look for in healthcare real estate.

Senior housing and behavioral health carry licensing and operating risk that a lender reads alongside the real estate.

Stabilized operating results
Trailing results that support the loan without relying on a plan. Lenders typically size against a stressed number, not the best year.
Debt service coverage and debt yield
Coverage sizes most loans. Debt yield is a check that ignores rate and amortization.
Value per bed or unit
How the appraiser and credit committee will frame the loan against comparable transactions.
Operator and licensing
License standing, survey history and the depth of the operating team.
Sponsor liquidity
Post-closing liquidity and global cash flow across the sponsor's other holdings.

Process

How we work it.

  1. 01

    Set the objective

    Lowest cost, most proceeds, non-recourse, prepayment flexibility or speed. You rarely get all of them.

  2. 02

    Package the property

    One standard package so every lender quotes against the same facts.

  3. 03

    Run the market

    Banks, agencies, life companies, CMBS and government-backed programs where the property and sponsor are eligible.

  4. 04

    Normalize the term sheets

    Proceeds, cost, term, amortization, recourse, reserves and prepayment compared on an all-in basis.

  5. 05

    Close and track maturity

    Coordinate conditions to funding, then keep the maturity date in view well ahead of the next refinance.

Next step

Request a capital review.

Tell us about the property and what the capital is for. A CCGX advisor will review it confidentially and tell you what looks financeable and roughly where.

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