CBRE refinanced a portfolio of three seniors housing communities owned by a joint venture between LCS and Nuveen Real Estate, an affiliate of the investment management arm of TIAA. These communities feature a combination of assisted living and memory care, with 328 units in total.
Developed by a not-for-profit in 2017 and 2018, they were acquired by the joint venture in 2018 as part of a seven-property portfolio that included four other stabilized communities around the Louisville and Indianapolis MSAs totaling 360 units of assisted living and memory care. The deal represented one of the first large-scale investments in the joint venture’s $300 million capital raise, which CBRE Capital Advisors in conjunction with the CBRE National Senior Housing Team served as exclusive financial advisor to close.
Now, these three communities, which are located in the Lexington, Kentucky and Cincinnati, Ohio MSAs, are in varying stages of late-stage lease-up, and the time came to refinance. Following up on the seven-year, fixed-rate loans that CBRE closed through its Freddie Mac Seller Servicer direct lending program to fund the four stabilized properties, and a bridge loan from CBRE’s MF1 Capital program for the other three properties, the CBRE team including Aron Will, Austin Sacco and Matthew Kurornen arranged a refinance through a national bank for the these three properties. The transaction featured three separate, non-crossed loans, with five-year terms, floating rates and 36 months of interest only.