- What Two retirement communities have secured fresh debt
- Why CMHC’s MLI Select product generally allows borrowers to access more capital at longer amortization periods
- What next Cushman & Wakefield sees improving occupancy and outsize rent growth in senior housing
Peakhill Capital has written roughly $135m of CMHC-insured debt to refinance two senior living communities, one in Ontario and another in British Columbia, Green Street News can reveal.
The deals, which both closed last month, come as the lender seeks to expand its presence in Canada’s senior housing space.
Lev Senior Living secured an $87.6m loan backed by the 285-unit Harmony Hill community in Oshawa, Ont. The first mortgage carries an interest rate of 4.32% and amortizes over 45 years. Oakbank Capital advised the borrower on the financing deal.
Harmony Hill is at 1335-1345 Benson Street. Oshawa’s population is older than the national average, which should help the property continue to see strong occupancy.
The CMHC’s MLI Select product generally allows borrowers to access more capital at longer amortization periods in exchange for meeting affordability, accessibility and energy efficiency standards.
Peakhill also closed a $47.3m loan for Sussex Retirement Living on the 134-unit Vineyards Residence in Kelowna, B.C.
The property is described as having a “home like” atmosphere, versus “hospital like” rooms found in some long-term care homes.
Cushman & Wakefield said in a recent report that the senior housing asset class is on the doorstep of a favourable demographic-driven demand curve shift.
“Despite the growing demand, as a result of five years of declining development activity, the rate of supply growth has slowed to a cyclical low,” the firm said.
“The confluence of these trends will result in tightening market conditions and will continue to drive improving occupancy and outsized rent growth. We believe these factors will result in seniors housing outperforming traditional real estate sectors over the next decade.”
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