CBRE Capital Markets Arranges Sale and Acquisition Financing for National Seniors Housing Portfolio
| June 15, 2015
CBRE Capital Markets announced that it represented Fountains Senior Living Holdings in the $640 million sale of The Fountains Portfolio, a 15-community national senior housing portfolio located across 11 states. CBRE Capital Markets’ Debt & Structured Finance team also secured a $410 million loan for the acquisition of the portfolio.
The 3,804-bed senior housing portfolio includes a combination of independent living, assisted living, memory care and skilled nursing located throughout Arizona, California, Florida, Illinois, Missouri, Michigan, New York, North Carolina, Oklahoma, Virginia and Washington.
Lisa Widmier, Executive Vice President of CBRE’s National Senior Housing team represented the seller, Fountains Senior Living Holdings LLC.
“We were able to create a win-win solution for all parties involved,” said Ms. Widmier. “We secured Northstar Asset Management Group as financial buyer, which retained Watermark Retirement Communities as manager. We secured a price that the seller was pleased with while limiting transaction and transition risk for this diverse and complicated portfolio of assets through the retention of the current manager."
CBRE secured a seven-year fixed rate loan, which includes interest-only for 39 months at an all-in-rate of 3.92 percent. Financing was provided by Freddie Mac.
Of the financing, Mr. Will said, “This was a complex transaction with many moving pieces, especially considering the composition of the CCRCs. We are pleased to continue to provide creative debt solutions for NorthStar and Watermark’s acquisition activity and help them deliver attractive returns to their investors.”
CBRE has been a Top 2 senior housing originator in the country from 2010 through 2014 and was the #1 senior housing/age restricted lender in the U.S in 2013 and 2014*. In 2014, CBRE Capital Markets originated over $808 million in senior housing debt across 60 assets, and was Freddie Mac’s #1 senior housing lender in the country.
*Mortgage Bankers Association
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.