CBRE National Senior Housing arranged more than $200 million in acquisition and recapitalization financing for seven senior living communities across three different transactions. The financing was done on behalf of Monarch Alternative Capital LP and REDICO, the buyers of the properties.
The portfolio includes 1,133 units of independent living, assisted living and memory care in Florida, Illinois and Michigan. The five Florida properties with 817 units are relatively new and have been operated by American House Senior Living Communities. They are located in Bluewater Bay, Bonita Springs, Coconut Point, Fort Myers and Wildwood. The one community in Illinois was also operated by American House and has 178 units of IL and AL and is located in Plainfield within the Chicago MSA. The Michigan community has 138 IL and MC units and is located in St. Clair Shores, 13 miles from Detroit. It had been owned by a local mom and pop.
The five Florida communities had been owned by a PE firm and it was time to cash out. The Illinois property was owned by a different PE firm with the same motivation. American House will be managing all seven now.
The CBRE team of Aron Will, John Sweeney, Austin Sacco and Adam Mincberg arranged the acquisition and recap financing. This included about $50 million through Freddie Mac’s OPTIGO lending platform and $150 million with a debt fund, all of which was floating rate. The financing came to more than $176,000 per unit, which should put the purchase price close to $220,000 per unit or higher.
Monarch is a global investment firm with $9.5 billion in assets under management and was the majority equity partner in the deal. While it has invested in seniors housing in Europe, this is its first foray into the U.S. seniors housing market. REDICO has a long-standing relationship as an investment partner with American House.
