Berkadia Supplies Massive Loan for Portfolio Acquisition

Berkadia finalizes financing for a huge multi-million dollar sale, and a value-add firm bets on Vegas as a retirement destination.
Harbor Place

Harbor Place, Corpus Christi, Texas

New York—Berkadia recently arranged $648.2 million in financing for the acquisition of 32 senior housing properties. Managing Director Christopher Fenton and Senior Director Jay Healy of Berkadia’s Seniors Housing and Healthcare group worked with NorthStar Realty Finance Corp. to secure the financing through Berkadia’s Fannie Mae Program.

The borrower will use the financing for the acquisition of the portfolio, which sold for $875 million. The 10-year, fixed-rate loan features a 4.17 percent interest rate, 73.5 percent loan-to-value ratio and a 30-year amortization schedule. The individual loans were crossed collateralized and crossed defaulted.

The portfolio’s 32 properties are located across 12 states including California, Missouri, Texas and Washington. The communities are comprised of 4,012 independent living units in total. Occupancy across all properties is more than 90 percent.

Value-Add firm bets on Vegas as a retirement destination

The Bascom Group Boulder Palms PhotoLas Vegas—The Bascom Group announced today that it has acquired Boulder Palms, a 183-unit age-restricted community located at 4350 Boulder Highway in Las Vegas. The sale price was $10.35 million. CBRE’s Brian Eisendrath arranged debt financing through One West Bank for the acquisition. NGKF’s Doug Schuster and Vittal Ram represented the seller.

According to Bascom, the acquisition is a demographic play that will benefit from the company’s value-add strategy.

“We are on the front end of over 76 million Baby Boomers moving into retirement,” Scott McClave, senior principal at Bascom said. “Las Vegas is a natural destination with the low cost of living and a large spectrum of choices for entertainment, leisure and healthcare.”

Boulder Palms was built in 1997. On-site amenities include a pool with spa, a fitness center, community game room, laundry facilities and central courtyard. This deal was Bascom’s eighth acquisition in Las Vegas in the past 20 months.