HOUSTON — Keith Van Arsdale of BMC Capital’s Dallas office arranged an $8 million cash-out refinance loan for a 280-unit apartment complex in Houston. The 10-year, non-recourse loan features a 4.3 percent fixed interest rate and a 30-year amortization schedule. The loan allowed the client to cash out over $3 million after capital improvements were completed during the course of 16 months. The loan was arranged through one of BMC Capital’s banking relationships.
HOUSTON, ROSENBERG, HUMBLE and CONROE, TEXAS — Brandon Brown and Jamie Safier of LMI Capital have secured financing for the acquisition and/or refinancing of four separate garden-style apartment complexes in the metro Houston area. Brown placed a 10-year, $4.9 million loan for a 105-unit asset in Rosenberg. The Fannie Mae loan was a cash-out refinance that closed in under 45 days and featured a fixed 4.3 percent interest rate with five years of interest-only payments. The second transaction for Brown was for a 100-unit property in Humble. The Fannie Mae acquisition loan included a 10-year term and three years of interest-only payment. Safier arranged the refinancing of an 80-unit property located in northwest Houston. The loan features a fixed 4.4 percent interest rate and two years of interest-only payments. Safier also secured acquisition financing for a 100-unit asset in Conroe. The loan featured 75 percent leverage, a 4.4 percent interest rate for the first seven years of the 20-year loan term and a step down prepayment structure.
PRAIRIE VILLAGE, KAN. — Tutera Senior Living & Health Care will soon break ground on Mission Chateau Senior Living, an independent living, assisted living and memory care community in the Kansas City suburb of Prairie Village. Development costs are estimated at $40 million. The 18.4-acre community will feature over 200 units when completed. Tutera hired studioSIX5, Nearing Staats Prelogar & Jones Architects and BHC RHODES to design the project.
CHICAGO — Interra Realty has brokered the $2.8 million sale of a 59-unit multifamily property in Chicago’s Bronzeville neighborhood. The sale price equates to $47,830 per unit. Bil-Mar Management sold the building to Mark DeAngelis. The property, which is a former retirement home, is located at 4724 S. Vincennes Ave. Over 70 percent of the units are two-bedroom/one-bathroom units. The building includes 70 parking spaces, a social room, recreation room and a gym. Craig Martin of Interra Realty represented both parties in the transaction.
WHITING, IND. — Cohen Financial has arranged a $3.3 million non-recourse loan to refinance City Place, a Class A apartment community in Whiting, approximately 15 miles northwest of Gary. City Place was built in 2015 and features 24 units. Located at 1514-1520 119th St., the property features all two-bedroom/two-bathroom units with an average size of 938 square feet. Michael Hart secured the 12-year, fixed-rate Fannie Mae loan with Pillar. The borrower is a Chicago-based apartment developer and investor.
SANTA CLARITA, CALIF. — Gelt has purchased the 232-unit Monterra Ridge apartment complex in Santa Clarita for $45.5 million. The community is located at 28085 Whites Canyon Road. Gelt plans to renovate the majority of the unit interiors as they become available. The units will receive vinyl plank flooring, new cabinets, stainless steel appliances, and new countertop surfaces in the kitchen and bathrooms. The leasing office and fitness center will also undergo an extensive remodel. The seller was FPA Multifamily.
CHICAGO — What are the best buying opportunities today for investors in the seniors housing space? The answer begins with an understanding of the deals that are among the least attractive, according to veteran broker Ryan Saul. A property that is 99 percent full that trades at a 6.5 percent cap rate could hardly be called opportunistic because there is no upside, points out Saul, managing director of Chicago-based Senior Living Investment Brokerage. Instead, buying a property that is 75 percent occupied for $100,000 a unit with a broken management team in place presents real opportunity, he believes. “You can go in, turn it around and really add value so that you can sell it stabilized for a much larger premium.” Saul’s insights came during a panel discussion on the state of the investment market at InterFace Seniors Housing Midwest, which took place Tuesday at the Westin Chicago River North Hotel. The conference attracted 265 attendees from a cross-section of the seniors housing industry. Moderated by Ben Firestone, managing director of Blueprint Healthcare Real Estate Advisors, the investment panel discussed who’s buying, who’s selling and what’s driving deal velocity. In addition to Firestone, the panelists included Talya Nevo-Hacohen, chief investment …
LAS VEGAS — Westland Pine Village LLC has acquired the 275-unit Pine Village apartment complex in Las Vegas or $16 million. The community is located at 3011 Arville St. It was 96 percent occupied at the time of sale. Pine Village was built in 1973. The new owner plans to upgrade the unit interiors. The seller was Pine Village Apartments. Brian Anderson and Angela Powers of Berkadia executed the sale.
PHOENIX — Life Care Services and Westminster Funds have completed the $13.2 million addition of 60 units of skilled nursing and memory care to Sagewood, a continuing care retirement community (CCRC) in Phoenix. The expansion doubled the size of the community’s Acacia Health Center, adding 36,300 square feet. The project included the addition of a 20-bed memory care neighborhood and 40 skilled nursing suites totaling 78 beds. The expansion also added new amenities, including three neighborhood dining rooms, three activity kitchens, three neighborhood living areas and an expanded rehabilitative therapy center. The CCRC as a whole, which totals 292 units, is currently 90 percent occupied. The Weitz Company served as the general contractor for the Acacia Health Center expansion. Architecture firm Todd & Associates and interior designers Spellman Brady Co. designed the project.
BROWN DEER, WIS. — New Perspective Senior Living has nearly finished work on a 133-unit seniors housing community in the Milwaukee suburb of Brown Deer. The property is scheduled to open in early August. The 153,000-square-foot community will feature 87 independent and assisted living units and 46 memory care units. Founded in 1998, New Perspective Senior Living is a Minneapolis-based developer and operator with 14 communities in Minnesota, Wisconsin and Illinois.