Still under a year after its launch, Creativcap has announced three more transactions, with a couple of other closings in the pipeline. First up on the brokerage side, Creativcap Advisory acted as co-broker on a $30 million sale of two senior living communities in the eastern Atlanta market. Built in the 1990s, the communities total 328 units, split among 156 independent living, 140 assisted living and 32 memory care. Combined occupancy was around 80%. A national operator had been managing the communities on behalf of the previous owner, a large private equity, alternative asset management and financial services firm based in New York City, but the Georgia-based buyer is bringing in its own management company to take over.
On the debt side, Creativcap placed two loans for senior living clients, plus one for a multifamily community. The owner of an AL/MC community built 20 years ago on the West Coast hired Creativcap to arrange a 15-month fixed-rate forward on a 10-year, $10.5 million life insurance company loan, with an interest rate under 4%. That allows the borrower to lock in a low rate but delay funding until early 2021, when the existing loan opens for prepayment.
In the other transaction, Creativcap placed a $45 million construction loan, with a five-year term and interest rate under 3.5%, for a to-be-built AL/MC community in the Pacific Northwest. The development cost for this project exceeds $500,000 per unit, so we imagine it sits on some pretty expensive real estate. A couple other bridge loans for assets on the East Coast are expected to close in the near-term, which means we’ll be hearing from Creativcap again soon.
