We recently learned that in December, Regions Bank Healthcare Real Estate Group closed a $2.85 million three-year balance sheet loan for the acquisition of an 81-unit independent living community in Chubbuck, Idaho. Per unit, the loan amount comes to $35,185 and includes interest only for the term, can be extended for up to two years and can be increased in the future based upon property performance. Chris Honn handled the transaction for Regions.
Comprising 82 units and one single-family home, Cottonwood Cove was built in 1987 and has 117,828 square feet on five acres. A western United States-based private equity firm purchased the community for $3.75 million, or $45,000 per unit, at an 8.75% cap rate. It earned annualized revenues of $1 million and an EBITDA of $328,000. The property also has a surplus of land, allowing the new owners to capitalize on their success by expanding. The buyer plans to invest approximately $1 million in strategic capital expenditures. At closing, the community was doing well, consistently performing at above 90% occupancy through the pandemic, with occupancy consistently near 100% at time of sale. The property will now be operated by the buyer’s affiliated operating company. Senior Living Investment Brokerage facilitated the sale.
