NorthMarq Capital continued its long-standing relationship with a 130-unit seniors housing community in Lynnwood, Washington, arranging Freddie Mac financing for the new owner. The community was developed by a joint venture between Living Care Lifestyles (the operator) and Morningside Development Group in late 2013 thanks to a $17.19 million four-year construction loan arranged by Stuart Oswald of NorthMarq.

It included 85 independent/assisted living and 45 memory care units in a three-story building in the affluent Seattle suburb of Lynnwood. Lease-up went quickly, and in the middle of that process, ownership obtained a cash-out refinance totaling $32.5 million with a three-year term and two years of interest only, which paid off the construction loan and made available additional cash, as well as allowing additional funds to be advanced as the community reached certain milestones in its lease-up. Again, it was Mr. Oswald of NorthMarq who arranged the transaction thanks to his relationship with a national, non-recourse bridge lender.

The community quickly reached 100% occupancy, so in 2016 ownership sought to refinance its debt with Freddie Mac, which it did, again, with NorthMarq, obtaining a $31 million loan with a seven-year term and LIBOR-plus 286-basis point interest rate. At that time, the community was valued at approximately $46.5 million, or nearly $360,000 per unit.

Ownership changed hands in May 2017, when CA Senior Living, an affiliate of Chicago-based CA Ventures, purchased the property in a joint venture with an affiliate of Goldman Sachs & Co. and the previous owner, Living Care Lifestyles. Moving forward, CA Senior Living has plans to open Phase II of the community, which would include 96 independent living and assisted living units added to the existing residential building, and Phase III, which would consist of 13 IL detached duplex cottages. CA Senior Living assumed the existing Freddie Mac loan, but in order to fund the expansion projects, the firm turned to (you guessed it) NorthMarq Capital’s Stuart Oswald to refinance again through Freddie Mac, obtaining a seven-year loan with two years of interest only. Now that’s a productive relationship.