Senior Living Facility in Lewisville, TX

Description

The collateral was comprised of a 160-unit Class B, independent and assisted living, senior housing community located in Lewisville, TX (Dallas MSA).
The loan transferred to special servicing in December 2011 for monetary default. The Trust took title in December 2012 through foreclosure after a short receivership period.

The facility Was Sold For $21.6 Million

Full Recovery Was Achieved For the Bondholders of the Trust

Scope of Work

At foreclosure, the property was 64% physically occupied with deferred maintenance and a dysfunctional staff.

After foreclosure, approximately $2.6 million of capital repairs were completed. Capital improvements included a large energy efficiency upgrade, replacing the dining room carpet, upgrading the common area floors and furniture, upgrading the assisted living common area, renovating units, installing new carpet and flooring in independent living main building, interior paint, new kitchen equipment, boiler replacement, upgrading the dining room furniture, replacing the roof, replacing common area washer-dryer units, and redesigning the monument sign. Interior unit upgrades included new cabinets, appliances, countertops and flooring in AL and IL units.

The entire staff, including executive leadership, was replaced. A new marketing program was successful which led to 95% stabilized occupancy for five years.

Resolution

CWCAM increased NOI from $0.22 million in 2012 to T12 actual NOI at time of disposition of $1.4 million.

The facility was successfully sold in November 2017 for $21.6 million which achieved full recovery for the bondholders of the Trust.

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