KeyBank Real Estate Capital pulled doubly duty for its client, Capital Health Group (CHG), in arranging an acquisition loan to fund the company’s purchase of three senior living communities in southeastern Pennsylvania, and then turning around to refinance the loan through multiple Fannie Mae financings.
This is not the first we have heard of CHG’s most recent acquisition. Announced in January, the sale of the Keystone Villa Portfolio was arranged by Toby Siefert, Brad Clousing and Jeff Binder of Senior Living Investment Brokerage. The three properties, located between Harrisburg and Philadelphia, were developed by the selling entity, a group of local operators in Pennsylvania looking to exit the market. There was the Douglassville location built in two phases in 2004 and 2008 as a 123-unit independent living community, but has since added 124 personal care/memory care units in 2009 and 2013. Built in 2011, the 123-unit Fleetwood community features personal care and independent living. And in Ephrata, there is a 139-unit community with IL, AL and MC that had just stabilized by the transaction’s closing following its 2014 opening.
All were well performing, and we can only imagine that pushed up the purchase price, which was not disclosed. CHG brought in Milestone Retirement Communities to manage the well occupied portfolio. With stable operations, relatively new builds, and a refinance already arranged through Fannie Mae, CHG must be happy with this transaction.