Coastal States Bank announced that it recently closed $9 million in financing to refinance a 60-unit purpose-built memory care community near Centerville, Ohio, and to acquire a 53-unit memory care community in Creve Coeur, Missouri. Following the closing, the sponsor’s affiliated management company, Kauhale Healthcare Management, began managing the community in Creve Coeur and will continue managing the Centerville community, which it acquired in October 2024.
The loan, which closed in coordination with a preferred equity investment from Kauhale Healthcare Real Estate and Locust Point Capital, was structured with a four-year term with interest-only payments for the first 12 months. The transaction facilitated the deployment of the value created in Centerville, a mortgage debt-free community, to support the continued expansion of its seniors housing portfolio, which now consists of eight properties across five states.
Berkadia handled the sale of the Missouri community, The Grande at Creve Coeur, which was purpose built in 2017. At the time of closing, it was underperforming with minimal EBITDAR, and occupancy was 84%. It will be rebranded as Kauhale Creve Coeur. Additionally, Kauhale’s website lists Kauhale Centerville in Dayton, Ohio, near Centerville with 60 memory care units.
