Capital Senior Living Corporation continues to prune its portfolio and try to stabilize its capital structure by selling, but still managing, its 230-unit senior living community in Canton, Ohio. Featuring 92 independent living units, 102 assisted living units and 36 memory care units, the community sold for $18 million, or $78,300 per unit, providing $6.4 million in net cash proceeds to the company after retiring the debt. Current financial performance is not known, but CSU had owned and operated the property since 1991, so it must have been difficult to leave. So, the company was retained by the new owner to manage the community for a 5% fee, which is expected to contribute around $350,000 in annualized 2021 revenue to CSU, implying about $7 million of revenues next year.
In 2018, CSU had extended its mortgage loan with Berkadia on the community to October 10, 2021, with an initial variable interest rate of LIBOR plus 5.0% and principal amortized over 25 years.
