Despite the senior housing sector seeing a significant decline in occupancy, Walker & Dunlop has secured $86 million in financing for two senior housing properties in California and Hawaii.
Walker & Dunlop’s Russell Dey and Jay Thomas arranged a $45 million loan for EWS Real Estate Investment Co.’s Palo Alto Commons in Palo Alto, Calif. Dey also led a team that secured $41 million in financing for the MW Group and its community in Honolulu, The Plaza at Moanalua. Both loans were provided by Freddie Mac and have attractive fixed rates and an interest-only component, according to Walker & Dunlop.
In California, the 181-unit Palo Alto Commons offers studio, one- and two-bedroom floorplans that range in size from 400 to 1,230 square feet. The units are split between two three-story buildings that were built in 1989 and 2010. The community can also accommodate different types of tenants with its independent living, assisted living and memory care living options. Residents get access to balconies and patios within their units but also to the building’s amenities that include a salon, swimming pool and clubhouse. Located at 4075 El Camino Way, Palo Alto Commons is also near a hospital, retail and restaurants.
Located at 1280 Moanalualani Place in Honolulu, The Plaza at Moanalua was built in 2011 and opened in 2012. The 160-bed senior housing community offers studio, one-bedroom and shared suite apartments that range in size from 312 to 426 square feet. As a senior housing community, residents get access to weekly housekeeping services, exercise classes, three meals a day and a 24/7 nursing team. The Plaza at Moanalua’s amenities also includes a coffee bistro, fitness and physical therapy center, salon, theater, rec room, library outdoor seating areas and computer stations.
SENIOR HOUSING DECLINE AMIDST COVID-19
Dey said in prepared remarks that the past nine months have been extremely challenging for the senior housing sector. November occupancy rates in senior housing communities have dipped, falling 6.1 percentage points since March to 79.1 percent according to a recent NIC quarterly report.
Before the height of the market impact from COVID-19, Walker & Dunlop also facilitated more than $46 million in financing for two senior housing communities in Lubbock, Texas and Huntsville, Ala.