CBRE National Senior Housing arranged a couple of refinances for Class-A assets in major metro areas. The first was closed for Chelsea Senior Living of New City, an 80-unit assisted living/memory care community located 30 miles north of New York City in a high-barrier-to-entry, affluent market. Built in 2021, the community features 56 AL and 24 MC units. It is owned by Capitol Seniors Housing, which brought in Chelsea Senior Living to operate the community.
Aron Will and Adam Mincberg of CBRE originated a $21 million bridge loan through Ohana Real Estate Investors, a national debt fund. The loan featured an interest-only term and a floating rate.
Will and Mincberg also teamed up to close a cash-out agency refinance for an independent living community in Costa Mesa, California. Coastal Heights Senior Living was built in 1990 with 148 units about one mile from the Pacific Ocean. Capitol Seniors Housing owned this property as well, in a joint venture with an institutional investor. Integral Senior Living has managed the community over the last several years on behalf of the venture.
At acquisition in 2016 (see that deal here on LevinPro LTC), the venture acquired a sub-performing asset that was in need of a refresh. So, they began extensive renovations to bring the community up to commensurate market standards. By doing so, significant value was created by bringing the community to full stabilization through strong and sustained financial and operational performance. Once the renovations were completed, a successful re-leasing occurred and enabled the venture to seek an agency cash-out refinance.
CBRE National Senior Housing arranged a 10-year floating rate loan with five years of interest only and total loan proceeds of $21.3 million through the Freddie Mac Optigo lending platform.
