A large East Coast private equity firm divested its 66-unit assisted living community in Cherry Creek, Colorado, hiring Evans Senior Investments to handle the sale. Evans also helped secure debt for the buyer through its joint venture with Carnegie Capital. That buyer was California-based Novellus Living, which is making its first acquisition in the state after already acquiring facilities in California and Arizona.
Built in 2002, the Colorado community sits just outside of Denver and comprises 66 assisted living units. While operating at 67% occupancy at the time of marketing and losing money, the community was able to increase occupancy to 79% throughout the transaction process while increasing the private pay census. Novellus will start renovations immediately at the community and begin the turnaround effort.
To fund the deal, JD Stettin of Carnegie Capital arranged a non-recourse, interest-only bridge loan at 65% loan-to-cost from a West Coast private fund.
