JD Stettin of Carnegie Capital is at it again, returning to the Pacific Northwest to close on acquisition financing for a portfolio of assisted living communities in Washington State. This closing comes just a couple of weeks after Mr. Stettin arranged $7.74 million in acquisition financing for four assisted living communities in rural Oregon. The details of that deal can be found here.
Back to Washington State, where the four other assisted living communities are located. Previously owned by Enlivant, they totaled 185 units, but the new owner, a private fund based in Arizona, will initiate a conversion project resulting in 193 units, split between 87 for assisted living and 106 for memory care.
To fund the acquisition, Mr. Stettin secured $10.84 million in debt at 73% loan-to-cost. Similar to the Oregon portfolio, these communities were struggling with operations and seen as a value-add opportunity by the buyer. However, the deal was initiated pre-COVID.
Mr. Stettin did not stop there, also originating a cash-out refi for an assisted living/memory care community in Redmond, Oregon. Truist provided the $16.6 million loan, which came with an interest rate below 4% and a built-in earn out feature that can release an additional $4.63 million as the property maintains stabilization.
Carnegie Capital had originated the construction loan for the property over two years ago on behalf of the regional developer/operator team. The community’s 96 units, including 12 independent living, 24 memory care and 60 assisted living units, are now fully occupied. This was the borrower’s third closing with Carnegie in the last two and a half years.
