CBRE Arranges Sale and Financing of Six-Property CCRC Portfolio in Dallas

CBRE Capital Markets’ National Senior Housing team has arranged the sale and financing of Continuing Care Retirement Communities (CCRC), a six-property portfolio comprised of 1,104 units in Dallas.

Lisa Widmier, executive vice president of CBRE Capital Markets’ National Senior Housing team, represented Life Care Services (LCS), the third largest manager of rental senior living and continuing care retirement communities in the U.S. LCS held a lease-hold interest in the Communities owned by Fortress Investment Group. The Communities were acquired by a joint venture between LCS and Aspect Investment Partners—a global investment advisory firm headquartered in Dubai, UAE. The joint venture bought the portfolio from Fortress Investment group.

Imran Ahmed, executive vice president of CBRE Capital Advisors, represented the joint buyer, Aspect Investment Partners.

Aron Will, vice chairman of CBRE Capital Markets’ National Senior Housing team, arranged the acquisition financing on behalf of joint venture between LCS and Aspect Investment Partners. CBRE secured $120.2 million in loan proceeds for the portfolio. CBRE, through its Freddie Mac Seller Servicer direct lending program, provided financing for two of the six assets by securing a $39.2 million, 10-year, fixed rate loan with 72 months of interest only. For the remaining four assets in the portfolio, CBRE secured a $81 million, non-recourse, five-year, floating rate loan with 36 months of interest only from a pair of national banks.

"Middle Eastern capital sources are increasingly showing interest in the U.S. Senior Housing market and the interest is likely to grow in 2018,” said Ms. Widmier. “This transaction was as complex as it can get. It involved lease termination, formation of a new joint venture between global partners, Sharia compliance, foreign equity source, and a combination of agency and private lending sources.”

Ms. Widmier added, “This transaction is yet another example of how CBRE can deliver superior results for its clients. Collaboration among four different CBRE practices – Investment Properties, Debt & Structured Finance, Investment Banking, and Valuation & Advisory Services –made this highly complex transaction possible and also expedited the closing process.” 

The Communities are spread across the greater Dallas metropolitan area, range from 153 units to 267 units each and are approximately 35 years old. The property addresses in the portfolio include:

• Autumn Leaves, 1010 Emerald Isle Drive, Dallas, TX, 75218
• Monticello West, 5114 McKinney Avenue, Dallas, TX, 75205
• Parkwood Healthcare, 2600 Parkview Lane, Bedford, TX, 76022
• Parkwood Retirement Community, 2700 Parkview Lane, Bedford, TX, 76022
• Signature Pointe on the Lake, 14655 Preston Road, Dallas, TX, 75254
• Walnut Place, 5515 Glen Lakes Drive, Dallas, TX 75231

A large part of the portfolio is comprised of skilled nursing with 37 percent Skilled Nursing (SNF) units, 24 percent Assisted Living (AL) units, 28 percent Independent Living (IL) units and 11 percent Memory Care (MC) units. LCS will continue to manage the Communities post transaction.