Walker & Dunlop Managing Director Kevin Giusti and Senior Analyst Brian Neal recently originated $37.47 million in financing for four assisted living and memory care facilities: Bloom at Bluffton in Bluffton, South Carolina; Bloom at Hilton Head in Hilton Head, South Carolina; Cascades of Tucson, in Tucson, Arizona; and Regency Jackson in Jackson, Tennessee.
The Bloom Portfolio consists of two assisted living and memory care homes in South Carolina with 117 total units that sold in May for $12.25 million to WindRiver Companies for a cap rate around 5.7%. Built around 20 years ago, the communities had seen occupancy decline to 70% due to the pandemic and several new communities opening in the area. Mark Myers and Alex Vice of Walker & Dunlop represented the seller, Kandu Capital, in the deal and arranged the $11.3 million acquisition loan with a two-year term from Locust Point Capital.
Regency Jackson, a 74-unit assisted living, received a $10 million 35-year HUD loan to replace existing debt. The refinance provided approximately $2 million in reimbursements to the owner, Regency Senior Living, while also funding repairs and improvements at the property.
Finally, Cascades of Tucson, a 196-unit community with assisted living, memory care, and independent living services, was refinanced with a $16.1 million HUD loan. The deal cut the interest rate on the property’s existing mortgage. The new 35-year loan also generated $1.2 million in funds for capital renovations, including a kitchen and dining room makeover.
