CreativCap closed a lifeco refinance for an existing, Class-A assisted living/memory care community in Northbrook, Illinois. Consisting of two buildings, the community opened in 2014 with 188 units. It leased up well and underwent a $16 million expansion and renovation in June 2019 that added a separate 44-unit memory care building and converted the MC units in the main building to AL. Management has remained in place since opening, and the community is currently achieving high rents and occupancy is in the upper 80s. The owner/borrower is a fund that invests exclusively in seniors housing on behalf of institutional investors, working with the community’s operator.
Working on behalf of the borrower to pay off an existing construction/permanent loan from a life insurance company, Scott Kavel and JD Kavel structured a low fixed-rate loan that included the ability for the borrower to repay the loan at par. Another lifeco provided the new loan.
