A St. Louis, Missouri-based developer/owner/operator did not have to go far for its latest acquisition, picking up a large senior living community in a nearby suburb. Built in 1986, the private pay community features 116 independent living and 63 assisted living units. It has been renovated twice since opening. Occupancy was in the mid-70s, which dipped slightly during the pandemic, but in-place cash flow was strong. Incorporating the property into its regional footprint, the buyer is planning a substantial, multi-million-dollar capital improvement project.
Newmark Knight Frank handled the deal on behalf of the seller and also procured a lender in Regions Bank to provide acquisition financing. The loan totaled approximately $24.57 million, or $137,300 per unit, and came with an initial term of three years and a floating interest rate. There are also extension options and the possibility to take the loan to an agency. Loan proceeds funded the acquisition and closing costs, and after the closing, Regions Bank and the buyer will collectively fund approximately $5 million in capital improvements. Chris Honn originated the loan.
