Blue Moon Capital Partners completed a large recapitalization of five seniors housing communities that it developed over the years and were the last remaining assets within its fund, Blue Moon Senior Housing I. CBRE National Senior Housing acted as transaction advisor in the recap and arranged acquisition financing for the deal.
StepStone Real Estate LP, the real estate arm of the global investment firm StepStone Group Inc. formed a joint venture with Blue Moon to take over ownership of the portfolio. Aron Will and John Sweeny, Co-Heads of CBRE National Senior Housing, acted as advisors on the transaction. Consisting of five Class-A seniors housing communities, the portfolio was stabilized, with occupancy in the low-90s. It has several operators, including Senior Lifestyle, LCB Senior Living and Ascent Living Communities.
Will and Matthew Kuronen originated four loans totaling $232.4 million through its Freddie Mac Optigo loan origination program for the joint venture’s acquisition of four communities with 640 total independent living, assisted living and memory care units in four states. The non-recourse mortgage financing has a seven-year term, five years of interest only and a very competitive interest rate. The fifth community in the portfolio had an assumable Freddie Mac loan.
The recap enables the joint venture to seek additional acquisitions before Blue Moon raises its next fund. StepStone has been focused on building its seniors housing exposure, too, so both parties are well positioned to join the fray in acquiring Class-A assets.
