TODAY’S DEALS: Cushman & Wakefield Arranges $82.4M in Portfolio Acquisition Capital for LCB Senior Living

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Cushman & Wakefield arranged $82.4 million of acquisition financing; RADCO buys 553 units in metro Atlanta; and Greeysteel arranges an apartment transaction in Silver Spring, Md.

LCBBoston—Cushman & Wakefield today announced that the firm’s Senior Housing Capital Markets Group has arranged $82.4 million of acquisition financing and joint venture equity capital for LCB Senior Living LLC for the acquisition of an institutional-quality two property portfolio consisting of 322 total units. The properties are located in Shelburne and Middlebury, Vt., and arguably represent the state of Vermont’s two finest senior housing assets.

Virtus Real Estate Capital, a real estate private equity firm based in Austin, Texas, provided $25.4 million in joint venture equity, while PNC Bank provided $57 million in first mortgage acquisition financing.

Cushman & Wakefield’s Executive Managing Director Richard Swartz, Managing Director Jay Wagner, Director Aaron Rosenzweig and Associate Stuart Kim directed the capital placement efforts for this transaction.

The Lodge at Shelburne Bay consists of 191 independent, assisted and memory care units, situated on scenic Lake Champlain in Shelburne, four miles south of Burlington. The property was built in 1999 and expanded in 2011 to include an additional residential building. LCB will rebrand the community as The Residence at Shelburne Bay.

Built in 2008, the Lodge at Otter Creek consists of 131 units of independent living, assisted living and memory care units, located in the heart of Middlebury, home to prestigious Middlebury College. LCB will rebrand this community as The Residence at Otter Creek.

LCB Senior Living is a seniors housing owner/operator consisting of the former management team of Newton Senior Living, which was the 16th-largest assisted living company in the nation at the time of its sale to Lazard Freres in 2005. LCB is developing and acquiring a robust portfolio of seniors housing communities in the New England market. The acquisition of these two properties marks LCB’s fifth and sixth acquisitions since recapitalizing its company in 2013. Additionally, LCB has developed six senior housing properties and manages two others. All of its developments, acquisitions and management contracts have been in the New England market.

LCB Senior Living CEO Michael A. Stoller comments, “These two properties are among the finest acquisitions that LCB has made. They are high-performing assets that yet have tremendous upside, and we’re very fortunate to have attained them.”

“The two acquired properties are a perfect fit for LCB’s existing institutional-quality portfolio,” notes Swartz. “Virtus and PNC continue to be terrific partners to the LCB organization, allowing it to grow and expand further into the region.”

Adds Rosenzweig, “This portfolio acquisition provides LCB an entry into the state of Vermont and expand its footprint in the New England market where it now has presence in five states in the region.”

RADCO Buys Two Atlanta Apartment Communities from Fannie Mae

The RADCO Companies Brown Ridge ExteriorAtlanta—The RADCO Companies has purchased two apartment communities in metro Atlanta from Fannie Mae for an aggregate price of $33.2 million.

Keeneland Farms (439 units) was originally built in 1972 on 44.4 acres in Smyrna, Ga. Brown Bridge (114 units) is located on 16 acres in Newnan, Ga., and was built in three phases from 1976 to 1988.

“Fannie Mae has done a good job stabilizing these two communities,” says Norman Radow, founder & CEO of The RADCO Cos. “It expects us to take these well-located properties to the next level with a substantial infusion of capital and superior execution. And that’s exactly what we are going to do. We are very excited about the better living we can bring to our residents and the value we can create for our investors.”

Keeneland Farms
Keeneland Farms

RADCO plans to invest $5.8 million to renovate and improve these properties. The firm will first rebrand Keeneland Farms and Brown Ridge as Ashford Woods and Ashford at Brown Ridge, respectively, to coincide with the company’s brand identity and its new ownership. The majority of RADCO’s capital improvement plan will focus on upgrading unit interiors at the properties. The firm will also replace aging infrastructure, renovate Keeneland Farms and Brown Ridge’s exteriors, and expand their amenity packages, which includes adding a pool to Brown Ridge.

So far this year, RADCO has purchased nine properties that include 2,264 units for about $220 million. Just last week, RADCO acquired Country Club and Cobblestone, two apartment communities totaling 316 units in Anderson, S.C. The company currently has another property under contract in Denver that should close this fall and has plans to pursue additional opportunities across the Southeast and Midwest.

Greysteel arranges Maryland apartment sale

Silver Spring, Md.—The Greysteel Company has arranged the sale of Dale Apartments, a 26-unit community located in downtown Silver Spring, Md. Greysteel’s multifamily team, led by Ari Firoozabadi, W. Kyle Tangney, John F. Mullen, Caleb Brown, Lance Ahmadian, Mike Bediones and Jake Ying, served as exclusive advisor and agent to Apollo Properties of Virginia LLC in the successful disposition.

“Dale Apartments represents a tremendous value-add opportunity in one of the most rapidly developing submarkets in the Washington D.C. Metropolitan Area,” says Greysteel Director W. Kyle Tangney. “Silver Spring is an entertainment and employment hub for young families and single professionals alike. The upcoming Purple Metro Line, an east-west public transportation link between Montgomery and Prince George’s counties, will connect the counties and compliment the over $400 million in recent developments in Silver Spring. We congratulate the Seller and Buyer and wish them success in their future endeavors.”

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