WASHINGTON, D.C., PHOENIX, DALLAS and BOCA RATON, Fla. — February 4, 2022 — Berkadia announced today a cross collateralized pool financing on behalf of Arizona-based Christian Care Companies’ Fellowship Square Affordable Senior Living Portfolio. The portfolio consists of four senior living and assisted living projects in Arizona. Senior Vice President, Head of Seniors Housing and Head of HUD Production Steve Ervin, Managing Director Richard Price of Berkadia D.C. Metro, Senior Director Chris Cain of Berkadia Dallas and Senior Director Rafael Nobo of Berkadia Boca Raton collaborated to secure the Freddie Mac permanent refinancing. Nearly $89 million in high interest rate first lien tax exempt bonds were redeemed with proceeds from the financing. The deal closed on January 11.
“Berkadia is proud to have assisted Christian Care Companies, a prominent non-profit senior living owner-operator, in providing this unique Freddie Mac structured financing,” said Price. “In addition to prepaying the bonds, proceeds from the transaction will enable Christian Care to complete significant upgrades to its properties and reduce its costs of funds by a substantial margin.”
The four properties in the portfolio include:
Fellowship Square Tucson is located at 8111 E Broadway Blvd. in Tucson, Arizona. The 612-unit independent living and assisted living property features studio, one- and two-bedroom floor plans with a private balcony or patio. Community amenities include central dining, transportation services, recreational venues, swimming pools, a fitness center and laundry facilities. The property affords residents an array of senior living and elderly care services and convenient access to Carondelet St. Joseph’s Hospital, Morris K Udall Park and Recreation Center and the shops and restaurants along East Broadway Boulevard.
20 percent of the units must be rented to low-income persons with incomes at or below 50 percent of the area median income (AMI), and 46 of the units targeted to households at or below 80 percent of AMI are rent restricted to 30 percent or 80 percent of the AMI.
Fellowship Square Historic Mesa is located at 35 W Brown Road in Mesa, Arizona. The 415-unit independent living project features studio, one- and two-bedroom floor plans. Community amenities include central dining, fitness centers, transportation services and recreational venues. The property affords residents an array of optional senior living and elderly care services and convenient access to Mesa Riverview shopping mall, Cinemark Mesa 16 and the shops and restaurants along N Country Club Drive.
40 of the units must be rented to low-income persons with incomes at or below 50 percent of the AMI. 22 of the units must be rented to low-income persons with incomes at or above 80 percent of the area median income with 22 of the units rent-restricted to 30 percent of 80 percent the AMI.
Fellowship Square Mesa is located at 6945 East Main St. in Mesa, Arizona. The 236-unit independent living and assisted living property features studio, one- and two-bedroom floor plans. Community amenities include central dining, fitness centers, transportation services and recreational venues. The property affords residents an array of optional senior living and elderly care services and convenient access to Banner Baywood Medical Center, Arizona Golf Resort and Event Club and the shops and restaurants along E Main Street and S Power Road.
20 percent of the units must be rented to low-income persons with incomes at or below 60 percent of the AMI.
Fellowship Square Phoenix is located at 2002 W Sunnyside Drive in Phoenix, Arizona. The 305-unit independent living assisted living and memory care project features one- and two-bedroom floor plans with in-unit washers and dryers. Community amenities include central dining, transportation services, recreational venues, a swimming pool, a fitness center, a dog park, a bocce ball court and an outdoor area with grilling stations. The property affords residents an array of optional senior living and elderly care services and convenient access to Interstate 17, North Mountain Park and the shops and restaurants along W Peoria Avenue.
20 percent of the units must be rented to low-income persons with incomes at or below 60 percent of the AMI.
The 10-year $92.8 million loan pool features a 65 percent loan-to-value ratio and three years interest only.
Actions & Transactions, Feb. 9 | McKnights Senior Living