After acquiring and expanding a 59-unit assisted living/memory care community in Nacogdoches, Texas, the time had come for its owners to refinance, with the help of Capital One. Originally built with 36 assisted living units in 1996, the community was previously owned by RWS Healthcare, a portfolio company of private equity firm Windward Health Partners.
But in May 2015, Prevarian Senior Living stepped in to buy the property for an estimated $130,000 per unit, and hired Civitas Senior Living to operate it. The community was about 93% occupied at the time but there was additional land for expansion, which Prevarian took advantage of to build 23 more units, including an 11-unit/16-bed memory care wing.
Now, to retire Prevarian’s existing debt and recapture equity invested in both the acquisition and expansion, Capital One provided a $9.3 million fixed-rate loan through Fannie Mae.