Newmark announced a slew of seniors housing closings, a couple of which we have already profiled this month. In total, the firm’s closings for June and July surpassed $580 million in volume. First was the sale of two active adult communities in Texas. Multifamily development and investment firm Cortland sold the properties to Livingston Street Capital for a combined $73.5 million, or $182,800 per unit, at a cap rate in the low 4s.
Next, the Newmark team handled the sale of a 94-unit assisted living/memory care community in St. Petersburg, Florida. The seller, Kandu Capital, had purchased the 2014-vintage property in 2017 for $5.5 million, or just under $60,000 per unit. Now, Kandu and its operating affiliate Bloom Senior Living are exiting the asset for a price of $12.5 million, or $133,000 per unit. For more details on that transaction, click here.
On to a newly revealed deal, Newmark sold a 146-unit independent living community in Henderson, Nevada that will see operators shift from Revel Communities to Stellar Senior Living. The property was built in 2019 and was just 45% occupied by June 2021. The Wolff Company sold it to Fortress Investment Group for $39.5 million, or $270,500 per unit. Based on year-three, stabilized financials, that would result in a roughly 6% cap rate.
Newmark also helped finance the deal, arranging a $28.6 million loan through MidCap Financial at 70% loan-to-value. The full-recourse loan came with a three-year term and two one-year extensions and a full term of interest only. There was a floating rate based on 30-day LIBOR with a 50-basis point floor, resulting in a spread of 4.75% and an all-in rate of 5.25%.
There was another recap and financing closed by Newmark involving a senior living community in Dallas, Texas. The Tradition Prestonwood was built in 2010 with 215 independent living and 113 assisted living/memory care units, with occupancy around 90%.The property was recapped by Harbert Management for an undisclosed price but was financed by an $83 million loan provided by Freddie Mac. There was a seven-year term, four years of interest only and a floating interest rate based on 30-day average SOFR, for a spread of 2.75% and all-in rate of 2.8%.
Tune in next week and in the August issue of The SeniorCare Investor for the rest of Newmark’s recent activity.
