The team at CBRE was in tune working through a Freddie Mac refinance of a senior living campus in Murfreesboro, Tennessee (Nashville MSA). According to our public M&A database, Deal Search Online, the borrower, a joint venture between Venue Capital LLC and Inspirit Senior Living, acquired the property from a local doctor and operator in January 2018 for $12.45 million, or $132,500 per unit. Built in 2001 with 68 assisted living and 26 memory care units, the community was around 85% occupied and operated at a 22% margin on $4.03 million of revenues at the time of that sale.
There was an opportunity to especially improve the memory care census, so in came Inspirit and Venue Capital. The joint venture spent more than $600,000 on renovations to improve the community’s marketability, and census rose to 90% as a result. So, CBRE worked through its Freddie Mac Optigolending program to secure a $12.3 million loan, with a seven-year term, fixed interest rate and 24 months of interest only payments inclusive of cash-out proceeds.