The Regions Bank Healthcare Real Estate Group arranged a $17.57 million five-year term loan on behalf of a joint venture to acquire a 100-unit assisted living/memory care community in northeast Ohio.
Developed three years ago by a local family, the community was improving operationally but was still considered a value-add opportunity for the buyer, a joint venture between an operator and a private equity firm. Proceeds of the loan will also help fund upgrades to the property operations and physical plant. Regions’ maximum loan-to-value for this type of transaction is 70%, so we can estimate the purchase price to be somewhere between $235,000 per unit and $250,000 per unit.
