The Lument team pulled double duty for the sale of two assisted living communities in Florida, representing the seller in the deal and arranging acquisition financing on behalf of the buyer. Savannah Court of Lake Wales and Savannah Court of Haines City, which both feature 45 units of assisted living, were acquired by Innovation Senior Living. Both serve Medicaid-waiver residents, and Innovation has plans to add 15 licensed beds to each community, in addition to growing census and investing in renovations. The additional beds will allow the communities to accept more Medicaid waiver residents into double occupancy rooms.
Innovation funded the purchase with a single loan in a cross-pool structure, which provides maximum debt allocation flexibility on a future HUD take out. The loan features a low, fixed rate and a two-year, interest-only term. Casey Moore, Conner Girdley and Chris Mauger led the financing for Lument, and the seller was represented by Lument’s M&A team, led by Laca Wong-Hammond and Dominic Porretta.
Lument’s Eric Mestemaker, Doug Harper and Casey Moore also closed a $31.6 million Freddie Mac loan to refinance Keystone Place at Legacy Ridge in Westminster, Colorado. Built in 2011 about 15 miles from downtown Denver, the community features 160 units of independent living and assisted living. It maintained strong occupancy throughout 2022 and saw substantial census and cash flow improvement throughout the loan process, allowing for additional loan proceeds.
Two existing Freddie Mac loans on the property totaling $28.2 million were refinanced, providing nearly $3 million in cash-out proceeds. The new loan features a 10-year term, 30-year amortization and five years of interest only. Lument was also able to lock in a low, fixed interest rate more than three months prior to closing, saving 100 basis points and generating significant debt service savings.
