DENVER — Evans Senior Investments (ESI) has arranged the sale of a 66-unit assisted living community in the Cherry Creek neighborhood of Denver.
A large, East Coast-based private equity firm sold the asset to Novellas Living, the buyer’s first acquisition in the state of Colorado. The price was not disclosed.
Built in 2002, the community was 67 percent occupied at the time of marketing while losing money. Throughout the transaction process, the community was able to increase occupancy to 79 percent while increasing the private pay payor source.
ESI helped the buyer obtain debt financing through its joint venture with Carnegie Capital.
“We continue to see the challenges of financing these turnaround opportunities with the ever-so-challenging debt markets,” says Brendan DeSilvia, Associate at ESI. “The lender was able to get very creative to get this one over the finish line.”
“The buyer is going to start renovations right away at the community as they begin the turnaround process,” adds DeSilvia.