Live Oak Bank is expanding its balance sheet offerings for senior care clients and recently closed a credit facility for national operator JEA Senior Living. The $25 million facility will support JEA’s senior housing acquisitions nationwide as the company continues to grow its portfolio. The structure also allows JEA to both add and remove individual assets within the financing pool, giving them flexibility to move quickly to pursue acquisitions as well as manage future refinancing plans.
The first funding under the facility supported JEA’s acquisition of a 38-unit memory care community in Peoria, Illinois, from its REIT landlord. Built in 2012 and licensed for 66 beds, the community has been managed by JEA since opening. However, its ownership has switched a number of times, with Columbia Pacific Advisors selling the community to New Senior Investment Group in 2014 for $15.7 million, or $413,200 per unit. Since then, New Senior has sold its entire AL/MC portfolio to ReNew REIT for $385 million, including this property. No purchase price was revealed for JEA’s takeover, but the property was stable. The transaction closed in April, so chances are there was little to no movement in the final price because of COVID-19.