The closings keep on coming for the team of Aron Will, Austin Sacco and Tim Root from CBRE National Senior Housing, which just announced two financings totaling nearly $50 million. The team first arranged $4 million in supplemental financing on behalf of Chicago Pacific Founders (CPF) for its 160-unit senior living community in Las Vegas, Nevada. Two years ago, CBRE had originated the original $13.5 million in acquisition financing for the property. Featuring both independent living and assisted living services, the community has been operated by CPF’s subsidiary Grace Management since the deal. Provided through Fannie Mae, the non-recourse loan came with a seven-year, fixed-rate term and 3.5 years of interest only. The supplemental loan was structured to be coterminous with the first mortgage.
Messrs. Will, Sacco and Root followed that up with a bank financing arranged for a joint venture between Virtus Real Estate Capital and Pathway to Living to refinance two of their Chicagoland assisted living communities. Featuring 107 units of AL and memory care, one of the properties is located in the affluent suburb of Westmont, while the other community has 120 units of assisted living in Lake Zurich, Illinois (about 35 miles northwest of the city).
In 2015, Mr. Will also secured the construction financing for both projects. The Westmont community received a $24.075 million loan, and the Lake Zurich community obtained an $18.3 million loan, both at 70% loan-to-cost. That puts the development cost at around $315,500 per unit for the AL/MC community in Westmont and at $218,000 per unit for the strictly-AL community in Lake Zurich. That’s the impact of adding memory care for you. A regional bank provided both loans, which came with four-year terms and 36 months of interest only. In the four years since, lease-up has been strong, and now to take out that debt, another regional bank is providing a $45.7 million loan, which comes with a five-year term, a floating rate and 36 months of interest only. Pathway to Living will continue operating them post-close.