Capitol Seniors Housing’s second investment in the Seattle MSA was financed with the help of Aron Will of CBRE National Senior Housing, who arranged a $20.12 million non-recourse, floating rate loan with a five-year term and 36-months of interest-only, provided by a national bank. The acquired community is located in the town of Mukilteo, Washington and features 107 units of about half independent and half assisted living. It was built in phases in 2000 and 2004, and occupancy has been between 86% and 90% in 2015. On a trailing-12 month basis, the community generated about $2 million of EBITDA on approximately $4.8 million of revenues, for an operating margin of 42%. Capitol Seniors Housing spent $29.125 million, or $272,200 per unit, on the property and plans to utilize $1 million from CBREs’ financing to convert 31 AL units to memory care. CSH is bringing in Washington-based Milestone Retirement Communities to third-party manage the community. Jason Punzel of Senior Living Investment Brokerage handled the transaction.
Mr. Will also recently arranged a $32.3 million 10-year Fannie Mae loan, with a fixed interest rate and 54 months of interest-only. The borrower, Westmont Living, will use the funds to refinance its 138-unit independent/assisted living community in Chico, California. Already with a 94% occupancy rate at the community, Westmont may look to convert a number of units to memory care in order to keep improving operations, which it has been since acquiring the property in 2006.