Capital Senior Living Corporation (NYSE:CSU) recently completed mortgage financings for $23.8 million on two recently acquired communities.
One loan, for an Indiana community, is for $4.8 million , with a fixed interest rate of 4.97%. The second loan, for an Ohio community, is for $19.0 million with a fixed interest rate of 4.92%. Both mortgages have 10-year terms and are non-recourse.
Capital has also completed due diligence on three high-quality senior living communities, and expects these communities to close for approximately $30 million in mid-October.
Two of these communities are in South Carolina, with the third located in North Carolina, increasing Capital’s presence in those geographic regions. The company has an initial commitment for 10-year fixed rate non-reecourse financings with rates and terms similar to those for the two recently acquired properties.
This acquisition is expected to generate additional cash from facility operations of approximately $1.4 million, or $0.05 per share.
Capital is also conducting due diligence on more high-quality senior living community transactions which it expects to acquire in the fourth quarter of 2011.
“We are pleased that we continue to achieve positive results in the third quarter with increases in occupancy and average monthly rents. These positive trends reflect the fundamental strength of our predominately private-pay business as we benefit from need-driven demand and limited new supply,” said Lawrence A. Cohen, Chief Executive Officer of the Company, in a statement. “Our competitive strengths enable us to continue to find attractive acquisitions and take advantage of historically low interest rates.”
Written by Alyssa Gerace