Confluent Opens Five Communities Across the Country
The general consensus (with several dissenters) is that senior living construction has (finally) slowed down, after a long period of overdevelopment in many markets. Considering the downstream effects of this, from a tighter, more expensive labor market to lower occupancy, the slowdown is a good thing, especially since most of those elusive baby boomers won’t be moving into senior living any time soon. However, not every market experienced the woes of overdevelopment, and Confluent Senior Living announced that it has recently opened five senior living communities away from those biggest problem areas (were looking at you, Houston). Partnering with MorningStar Senior Living, Confluent... Read More »
Walker & Dunlop Finances Arcapita-Owned Assisted Living Communities
Just over three years since buying three assisted living communities in Colorado, Middle East-based alternative investment fund manager Arcapita is refinancing them with the help of the team of Stuart Wernick, Jeff Ringwald and Bill Jackson of Walker & Dunlop. Operated by MorningStar Senior Living since opening in 2013 and 2014, the communities were nearly stabilized when they were acquired in December 2015 for a combined $79.5 million, or just over $400,000 per unit. Two of the communities feature a combination of assisted living and memory care units in Colorado Springs and Centennial, and the third property (also in Colorado Springs) serves exclusively memory care residents. In all,... Read More »
Thorofare Capital Rises Again In Phoenix Area
Thorofare Capital is expanding its seniors housing bridge lending program and recently closed a $13 million loan on behalf of a 277-unit assisted/independent living community in North Phoenix, Arizona. The floating-rate loan, with a two-year term of interest only payments, provides an initial advance of $10 million to repay the construction loan and also funds reserves while the community leases up. There was also $3 million withheld for the future renovations and performance-based earn-outs. The borrower, a Southern California-based real estate investor, acquired the property out of a bank’s REO portfolio in 2015 when it was an Embassy Suites Hotel. They then converted the building in... Read More »
Rocky Mountain High
On the heels of paying more than $500,000 per unit for an 85-unit assisted living and memory care community in the suburbs of Denver, Colorado, Kayne Anderson Real Estate Advisors purchased another community from the same seller, Confluent Senior Living, this time in Fort Collins. Given that this one opened its doors 30 months ago, we assume it went for a similar price even though the markets are different. A little smaller at 79 assisted living and memory care units, the seller’s operating partner, MorningStar Senior Living, will continue to operate it for Kayne Anderson. Confluent and MorningStar have completed seven previous projects together, in Arizona, Colorado, Iowa and New... Read More »