The dog days of summer have brought a slew of bank financings from CBRE this August. First was a refinance for The Springs at Lancaster Village, which is owned by a joint venture between The Springs Living and Amstad Farms Land Company. Built in 1983 with expansions in the 1990s, the community has 115 independent living and 74 assisted living units, with an array of amenities. It was acquired by The Springs Living in 2020 for $31.5 million, or $165,800 per unit, with Amstad, a long-standing friend and family relationship of Springs, providing the original capital for the deal. Amstad is not your typical seniors housing investor, being one of the largest potato producers in the Pacific Northwest.
To refinance the community, Aron Will and Tim Root of CBRE originated a $20 million loan, with a four-year term and two years of interest only, through a regional bank.
CBRE also secured financing for two separate joint ventures in which the partners were acquiring seniors housing communities. First, CBRE arranged acquisition financing for two seniors housing communities on behalf of a joint venture between Artemis Real Estate Partners and Bridgewood Property Company. The communities are being managed by The Aspenwood Company, Bridgewood’s wholly owned management company.
The two communities are Village on the Park Denton and Village on the Park Plano. Aron Will and Adam Mincberg originated the $24.1 million, three-year floating rate loan with full term interest only through a regional bank. Built in 2016, Village on the Park Denton is in Denton, Texas, and comprises 107 assisted living and memory care units on 8.2 acres. Also built in 2016, Village on the Park Plano sits on a 3.05-acre site with 92 assisted living units.
CBRE handled the sale of these two communities, as well as two others in McKinney, in a portfolio transaction: Village on the Park Stonebridge Ranch and Village on the Park McKinney. The portfolio comprises 366 total units of assisted living and memory care and the communities were built between 2014 and 2017. John Sweeny, Will and Garrett Sacco handled this transaction.
CBRE additionally arranged acquisition financing for MorningStar at Arcadia on behalf of a joint venture between Sabal Investment Holdings, 12 North Capital and MorningStar Senior Living. Will and Michael Cregan arranged the five-year, $20.1 million floating rate loan with three years of interest only through a national bank to facilitate the acquisition.
Built in 2014, MorningStar at Arcadia is in Phoenix, Arizona, and features 108 AL/MC units. Post-acquisition, the community will continue to be managed by MorningStar under a traditional third-party management contract. The JV, which purchased the community below replacement cost, is planning a targeted capital expenditure program at the asset to facilitate a series of enhancements aimed at improving resident experience, optimizing occupancy and bolstering value.
