Aron Will of CBRE once again showed off his range, and his reach, closing two financings for clients in California and Michigan. First, in Traverse City, Michigan, a 388,000-square foot former asylum that underwent a decade-long redevelopment into a massive mixed-use neighborhood capped off the project with a brand-new, 110-unit independent living/assisted living community in the 130-year old building’s north wing. The $31 million senior living community opened in 2014 and has experienced steady lease-up, nearing stabilization today. Adding to the site’s appeal is that it is now surrounded by numerous restaurants, wineries, boutiques and over 70 small businesses.
Developed by a joint venture between Boston-based Cordia Senior Living and local real estate and investment management firm Cypress Partners, the senior living community was financed through historic tax credits (the entire project is one of the largest historic preservation and adaptive reuse developments in the country) and a construction loan from FirstMerit Bank. Now, with the help of CBRE, the JV is refinancing with a non-recourse, three-year, interest-only loan.
Then, to California, where a mom & pop decided to sell their 110-unit assisted living/memory care community in Antioch (San Francisco MSA), citing their inability to finance some needed physical and operational changes as the reason to seek an exit. Built in 1999, the purpose-built community is located across the street from a 132-bed hospital, and one mile away from another 122-bed hospital.
New ownership, a joint venture between investment management firm Trellis Real Estate Group and Agemark Senior Living (which will operate the community), plans to invest $2.6 million in capital upgrades that should address the building’s energy efficiency and competitiveness in the market. To fund the deal, Mr. Will secured a floating rate loan, with a five-year term and 36 months of interest only, from a national bank.
