The CBRE team of Aron Will, Austin Sacco and Tim Root arranged a refinance of a 100-unit independent living community in Durham, North Carolina, just two years after financing the property’s acquisition. Originally built as a hotel in 1985 but renovated and converted to IL in 2013, the community was purchased by Focus Healthcare Partners in October 2017 for $15.8 million, or around $160,000 per unit. At the time, it was fully occupied and operated at close to a 30% margin on over $3.1 million of revenues. The deal resulted in a cap rate of about 6.3%.
Amenities include an interior courtyard with an in-ground pool, bocce court, putting green, theater, library, coffee/juice bar and community garden, with dining options in either the bistro or formal dining room. Rents start at $3.650 a month for one-bedroom units and $4,050 for two-bedroom options.
Two years ago, Mr. Will originated a $12.2 million loan from Fannie Mae, with a 10-year floating rate term and five years of interest only, to fund its purchase. Now, the CBRE team has originated an $18 million Fannie Mae loan, with a floating rate, to refinance the property.