Grandbridge Real Estate Capital announced a slew of agency financings across the country, all for seniors housing clients. First, Richard Thomas secured a $19.5 million refinance of an 84-unit assisted living/memory care community in Temecula, California. Highgate Senior Living built the community in 2018, and occupancy was already at 94% by the time of closing. They obtained a non-recourse loan from Freddie Mac that has a 10-year term and fixed interest rate.
Mr. Thomas also worked with Thomas Wiedeman (based in Grandbridge’s Atlanta office) to arrange acquisition financing for an 89-unit assisted living/memory care community in Pensacola, Florida. Built in 2016 and now close to full occupancy, the community was previously owned by CNL Healthcare Properties.
Along with a 92-unit AL/MC community in Tampa, it was purchased earlier in 2020 by Waypoint Residential for a combined $48.85 million, or about $270,000 per unit, at a cap rate likely below 6.0%. Newmark Knight Frank handled that sale and also arranged about $15.8 million in debt financing for the Tampa transaction. Meanwhile, Grandbridge secured a $16.575 million loan from Freddie Mac that was non-recourse, had a 10-year term and a fixed interest rate to fund the Pensacola purchase.
Finally, working through HUD, Mr. Thomas along with Meredith Davis and Kim Huffstutler originated an $11.28 million loan for Avista Senior Living to refinance its 132-unit assisted living/memory care community in Phoenix, Arizona. Built in the 1970s next to a major hospital, the facility was purchased by the notorious Sunwest Management in the mid-2000s but was taken over by a receiver in the summer of 2010, according to our in-house M&A database.
At the time, it provided both independent living and assisted living services but was losing money on about $1.5 million of revenues. Pro forma financials showed that annualized revenues could reach $4.0 million after a conversion of a floor to memory care. Avista Senior Living acquired the community from the receiver for $4.575 million, or $33,400 per unit. We’re not aware of the current operations, but assuming a typical loan-to-value of 70% based on this HUD refinance, the community’s value has likely risen more than threefold. So, operations must be decent.
