EdR Completes $20.9M Acquisition in Michigan

EdR picks up an asset in Michigan; Capital Senior Living buys eight communities for $72.9 million; and NorthMarq employs a Freddie Mac early-rate lock for $20.6 million refinance.

Campus Village

East Lansing, Mich.—EdR has picked up a 355-bed, 106-unit community serving Michigan State University for $20.9 million. Campus Village, located in East Lansing, Mich., was developed in two phases in 2002 and 2004. The asset is currently 97.7 percent leased for the 2012-2013 academic year with an average monthly lease rate of $639 per bed.

The purchase price represents an approximate 6.7 percent economic cap rate on the expected net operating income over the next 12 months. Amenities at the property include a clubhouse with fitness center, a tanning bed, computer lab/business center, game room, volleyball court and grill/picnic area.

Capital Senior Living buys eight communities

Dallas—Capital Senior Living Corp. has purchased eight senior living communities for a purchase price of $72.9 million. The assisted living and memory assets are located in Texas, Indiana and Ohio. The purchases were financed with an aggregate of approximately $50.2 million of non-recourse mortgage debt and approximately $18 million of bridge financing. The blended average interest rate on the $50.2 million of debt is approximately 4.50 percent.

The bridge loan has a $6.4 million component that will be refinanced with a permanent mortgage in the fourth quarter of 2012 upon completing the installation of a sprinkler system to a portion of one of the buildings. The cost of the sprinkler installation is being paid by the seller.

“We continue to enhance our geographic concentration by acquiring high-quality senior living communities in existing markets that generate meaningful increases in FFO and earnings,” says Lawrence Cohen, chief executive officer of Capital Senior Living. “Our competitive strengths enable us to execute on attractive acquisitions and benefit from historically low interest rates. The exceptional returns generated by these acquisitions complement the positive results we are achieving in our operations with increases in occupancy and average monthly rents.”

NorthMarq employs Freddie Mac early-rate lock for $20.6M refi

Kissimmee, Fla.—David Schofield, senior director, and Robert Rothaug, investment analyst, of NorthMarq’s Orlando Regional office, arranged first mortgage refinancing of $20.6 million for Lake Tivoli Apartments, a 384-unit market-rate multifamily community located at 851 Lake Tivoli Boulevard in Kissimmee, Fla.

Financing was based on a 10-year term and a 30-year amortization schedule. NorthMarq arranged this early-rate lock financing for the borrower, Lake Tivoli Apartments LLC, through its seller-servicer relationship with Freddie Mac.

“We were able to lock the interest rate on this loan earlier in the year for a funding in August when the loan became open for prepayment,” says Schofield. “Freddie Mac’s Early Rate Lock option was a perfect fit for this transaction.”