Dealmaker: Walker & Dunlop Structures $38M for Assisted Living, Memory Care Facilities
Walker & Dunlop, Bethesda, Md., structured $37.4 million in financing for four assisted-living and memory care facilities in three states.
The transactions included $5.5 million for Bloom at Bluffton in Bluffton, S.C., $5.7 million for Bloom at Hilton Head in Hilton Head, S.C., $16.1 million for Cascades of Tucson, in Tucson, Ariz. and $10 million for Regency Jackson in Jackson, Tenn.
Walker & Dunlop Managing Director Kevin Giusti and Senior Analyst Brian Neal led the origination team.
The Bloom Portfolio with two assisted-living and memory care communities totaling 117 total units in South Carolina, was brought to the team through Director Alex Vice, who arranged the sale of the assets to WindRiver Cos. The team identified Locust Point Capital as the capital provider. The $11.3 million in acquisition financing had an 85% loan-to-value ratio.
The Walker & Dunlop team also refinanced the Cascades of Tucson, a 196-unit facility with assisted living, memory care and independent living rooms. The transaction for this community effectively lowered the interest rate on the property’s existing mortgage, replacing the debt with a 35-year fixed-rate loan. The new debt also provided approximately $1.2 million in proceeds for capital improvements, which will include a kitchen and dining renovation. For Regency Jackson, a 74-unit assisted-living facility, the team worked closely with its client to provide a 35-year fixed-rate loan through HUD. The refinance replaced existing debt, provided nearly $2 million in reimbursements to the client and funded repairs and improvements at the property.