Walker & Dunlop’s Gideon Orion, Tony Cassie and Sam Thompson recently facilitated the sale of a struggling, Class-A, 134-unit assisted living/memory care community in the Denver metro area. The community first opened in 2016, financed via Series 2017A and 2017B tax-exempt state bonds, and it is still among the newest senior living assets in its market. The seller, a regional not-for-profit CCRC owner/operator, took over management in late 2023 on an interim basis as part of a not-for-profit merger. They, along with the bondholders, exclusively engaged Walker & Dunlop for the deal team’s bond-financed and non-profit asset disposition experience, to execute the transaction for all stakeholders within the forbearance period.
The asset was operating with occupancy below its relevant market competitors, and it generated negative EBITDAR. W&D marketed the asset to traditional levered and unlevered investors and senior living owner/operators, as well as prospects with experience in acquiring real estate assets through assumption of tax-exempt bond debt. The competitive bidding process resulted in 15 offers and multiple bidding rounds before a regionally focused senior living owner/operator that proved they could close within the seller’s and bondholders’ required time frame was chosen as the buyer. Walker & Dunlop worked with the seller, bondholders, bondholder’s counsel and buyer to ensure a timely closing, including identifying the eventual source of capital for the deal.
