A portfolio of four assisted living communities in rural Oregon found a new owner with the help of debt arranged by JD Stettin of Carnegie Capital, the seventh transaction closed by Mr. Stettin during the pandemic. Totaling 136 units, the portfolio is being converted to include memory care, and will feature a mix of 60 AL and 85 MC units across the four communities. Occupancy could be improved, but the current residents will not be displaced as a result of the project.
The portfolio was owned by a large national senior care provider with facilities in over 25 states. But that turnaround opportunity attracted a new owner, a private fund based in Oregon and Arizona that is highly motivated to acquire these days. They secured $7.74 million of debt to cover more than 120% of the purchase price, so a good deal of the expansion cost was funded by this transaction. The transaction was initiated before the COVID-19 crisis set in and closed at the beginning of June.
