GREEN BAY, Wis. — Walker & Dunlop has arranged $9.1 million in financing for the acquisition of Tender Hearts Assisted Living, a 50-unit community in Green Bay.
The property was built in 2009 and renovated in 2019. The total price of the acquisition was $10.1 million. The seller was not disclosed.
Walker & Dunlop structured the HUD-insured financing on behalf of Senior Opportunity Funds Holding Co. (SOF), a seniors housing developer that has historically developed Class A independent living, assisted living and memory care communities in the Southeast. As part of the company’s growth strategy, SOF identified Wisconsin as a region that is underserved in seniors housing options.
Walker & Dunlop’s Kevin Giusti led the origination team. The financing structure also included an $800,000 seller note, bringing the combined loan-to-cost to 98 percent. In addition, the existing cash flow at the property was sufficient to cover future debt service payments given the low interest rate and 35-year amortization period.
“HUD acquisition deals are rare, but HUD’s LEAN program stepped up to provide attractive acquisition financing while many lenders were out of the market or drastically changed their lending parameters due to COVID-19,” says Giusti.