CBRE National Senior Housing refinanced Queen Anne Manor, a 93-unit assisted living/memory care community in Seattle, Washington, on behalf of Capitol Seniors Housing. Aron Will, Adam Mincberg and Michael Cregan arranged the financing. Originally built in 1908 as Seattle’s Children’s Orthopedic Hospital, the community was converted to seniors housing in 1982 and was extensively renovated in 2015. Set in the high barrier-to-entry Queen Anne Hill neighborhood, the community offers expansive views of Seattle’s downtown skyline, the Olympic and Cascade Mountains, and the Puget Sound.
At the time of its 2016 sale, occupancy was 96% and the community operated at a strong 40% margin. Milestone Retirement Communities managed it back then, but the community is currently operated by Senior Services of America under a third-party management agreement. Capitol Seniors Housing paid $36.3 million, or $390,000 per unit, securing a $24.995 million loan through Freddie Mac to fund the deal. The floating-rate loan had a seven-year term, so the time to refinance had come this year.
So, the CBRE National Senior Housing team originated a $23.3 million, 10-year bridge loan with three years of interest only to effectuate the refinance through a national bank.
