Late last week, we profiled several of Newmark’s latest closings, but we also said that we were not finished. One deal was referenced in Welltower’s recent earnings release, as the REIT’s purchase of seven senior living communities from White Oak Healthcare Partners finally closed. The communities, averaging more than 20 years in age and featuring a mix of 41 independent living, 214 assisted living and 176 memory care units, sold for $49.8 million, or $108,700 per unit. Frontier Management will take over operations of the portfolio, which is spread out across California (three locations), Georgia, Tennessee, Washington and Texas.
The firm also closed the sale of a 202-unit active adult community in Langhorne, Pennsylvania. Built in 2003 and generating around $2.6 million in EBITDA, the community sold to The Carlyle Group and Greystar for $58.85 million, or $291,300 per unit.
Staying in the active adult market, Newmark next closed a land sale for an AA development in the works in Myrtle Beach, South Carolina. There are a total of 184 units zoned for the project, which is set on 17 acres, 10.3 acres of which are buildable. Passco sold the parcel to JEM Holdings for $3.5 million.
Lastly, Newmark closed a couple of construction financings. Working with BMO Harris Bank, the team first closed a $19.44 million loan at 65% loan-to-value to fund a $29.9 million project. The community will feature 85 assisted living and 25 memory care units in Redmond, Washington. The loan comes with a four-year, interest-only term, one-year extension and floating rate with a floor of 0.25% and spread of 3.70%.
Then, Newmark completed a construction equity raise for Vantage Pointe Retirement Living to build a 175-unit senior living community in Lewes, Delaware. Expected to open in the first quarter of 2023, the community will feature 78 independent living, 65 assisted living and 32 memory care units. Berkshire Residential, which recently made its first purchase of an open community, emerged as the LP equity partner, contributing $22.02 million. The rest of the funding for the $66.5 million project will come from a five-year, floating-rate loan provided by M&T Bank.
