Almost five years after taking over the operations of a 92-unit senior living community in the town of The Dalles in northern Oregon, family-owned The Springs Living has become its sole owner, thanks to a $17.5 million Fannie Mae refinance arranged by Capital One’s Dague Retzlaff and Mark Bultman. Harrison Street Real Estate Capital bought the community as part of a four-property, 419-unit portfolio in November 2012 for a total of $65 million, or $155,130 per unit, and brought in The Springs to operate. At the time, the portfolio was 89% occupied and operated at a 26% margin on $15.65 million of revenues. We believe Harrison Street has since added value to the property, as it typically does, and made a tidy profit. In addition to funding the buy-out, the loan refinanced existing balance sheet debt on the property, which was originally provided by GE Healthcare Finance. The existing debt covered the whole portfolio, so Capital One was able to allocate a portion of it for the refinance. Will The Springs (which owns 14 communities in Oregon and Montana) make a move to acquire the rest of the portfolio? We will wait and see.
Fannie Mae Origination in Oregon
