Berkadia Seniors Housing & Healthcare has refinanced a 123-unit assisted living community in Kailua-Kona, Hawaii, for $16.58 million. Berkadia’s Jay Healy secured the financing on behalf of the owner, who acquired the facility in August 2017 after previously managing the building on behalf of the seller.
The 35-year loan paid off an $11.7 million bridge loan that Berkadia had arranged to fund the acquisition and subsequent $4.5 million renovations, which was finished in early 2020. The borrower also used funds from the loan to pay off the remaining unsecured seller financing as well as some outstanding partnership debt.
Occupancy was substantially below its potential at the time of purchase, mostly due to capital investment requirements. The buyer addressed all deferred maintenance, upgraded the common rooms, and added solar panels for both electricity and hot water as part of the redesign. As a result, they were able to raise rents and increase occupancy to 87%, a figure that is likely to rise post-COVID.
