AUSTIN, TX – Kong Capital, in partnership with MedCore Partners, recently closed on the transaction of a seven-property senior housing portfolio. The group raised equity from Locust Point Capital who acts as the sole limited partner for the acquisition. The lender for the transaction is Bank of Montreal (BMO).
The 593-bed portfolio located in Washington State (Seattle/Tacoma) and Southern California (Orange County) consists of Independent Living (IL), Helped Living (AL), and Memory Care (MC) and is operated by Senior Services of America.
“We are incredibly proud of this accomplishment,” stated Kong Capital Founder and CEO Coe Schlicher. “Our team navigated the current market uncertainty and successfully took the transaction to the end line. As the economic fallout from the pandemic increases, we are seeing more deals of this type coming to market. We will continue to aggressively source unique distressed opportunities which we consider to be our specialty.”
In January 2020, Kong Capital and MedCore Partners place the off-market portfolio under contract for a $70MM buy price. After receiving 4Q2019 financial statements and seeing a further decline in NOI, the buy price was renegotiated with Ventas to $52MM.
Kate Ford, principal at Kong Capital, said, “Adjusting to the post-COVID world required new perspectives in underwriting and a fundamental re-evaluation of core risk assumptions, not to mention adjusting for the difficulties in allowing for safe community site visits during the current environment. We are grateful to work with partners who share our point of view.”
“Kong Capital’s principals are a group we have known for some time, so when the opportunity came up to work together on a transaction, MedCore knew the relationship would be accretive,” commented Anthony Fulco, director of Acquisitions, Seniors Housing at MedCore Partners. “Our two groups worked well together on this deal, and we look forward to working on more opportunities with the Kong Capital team in the future.”

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WASHINGTON, DC – The Department of Housing and Community Development (DHCD) has provided $20.2 million in financing that will preserve 336 units of affordable housing for low-income households in Ward 8 at Park Southern Apartments.
“This agreement is the culmination of continuous engagement and participation among tenants, the developer and our team,” said DHCD Director Polly Donaldson. “This should serve as another example that tenants are an vital voice in preserving affordable housing.”
800 Southern Avenue LLC, an entity jointly owned by Vesta Corporation and Park Southern Residents Council Inc., received $19.7 million in financing from the Housing Production Trust Fund (HPTF) and $530,000 in grant funding from the Department of Behavioral Health (DBH) to rehabilitate a 358-unit apartment complex at 800 Southern Avenue SE.
Tenants organized and assigned their rights to buy the building to the development team which is permissible under the District’s Tenant Opportunity to Buy Act (TOPA). There will also be 22 market rate apartments in the redevelopment. The community will have 326 units designated affordable for households whose annual income fall within $44,100 up to $79,600.
Ten units will be permanent supportive housing units (PSH) with support services provided by DBH and available for households whose annual income fall within $26,500 and $37,800.
“Safe, stable, affordable housing supports treatment and sustained recovery for residents living with mental illness and substance use disorders,” said DBH Director Dr. Barbara Bazron. “The Mayor’s continued investment places the District at the national forefront of supported housing designated for people with behavioral health needs.”
In her Fiscal Year 2021 budget proposal, Mayor Bowser affirmed that both small- and long-term efforts must continue to preserve housing affordability and stability for all District residents. The Mayor’s FY21 budget proposal includes an investment of $100 million in the Housing Production Trust Fund – for the sixth consecutive year – and a $1 million investment in the Housing Preservation Fund.
In addition to preserving affordability in perpetuity for Park Southern, the improvements to the property will include full renovations of units, new plumbing and a completely new roof. The project will also comply with Enterprise Green Communities requirements and include a number of measures to increase energy efficiency.
The project is estimated to be completed in Spring 2023.

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BIRMINGHAM, AL – Walker & Dunlop, Inc. announced that it completed the sale and financing for The Moretti at Vulcan Park. The 135-unit property is a Class A, luxury apartment community located in the Homewood neighborhood of Birmingham, Alabama.
Walker & Dunlop’s financing team comprised Managing Directors Stephen West and Matt Wallach, as well as Senior Managing Director Will Baker. Leveraging their deep understanding of GSE lending programs, the team secured a ten-year Freddie Mac loan with five years of interest-only payments and an attractive, fixed rate. The financing assignment was completed on behalf of ApexOne Investment Partners, who bought the multifamily property from Raia Capital Management via Walker & Dunlop’s property sales team, comprised of Managing Directors Kris Mikkelsen and Telly Fathaly.
Said Mr. West, “We’re pleased to have executed both the sale and acquisition financing for The Moretti at Vulcan Park in the face of significant logistical challenges made by the COVID-19 crisis.” He added, “This property is a cornerstone investment in Homewood, a premier neighborhood with high barriers to entry. Despite considerable volatility in the markets, we were able to lock in very attractive debt terms for ApexOne.”
“We’re excited to announce the addition of Moretti to our portfolio. The property fits perfectly within our strategy of purchasing high quality assets with the opportunity to increase value over time by improving common areas and interior units,” commented Tim Burns, Partner and Chief Investment Officer of ApexOne Investment Partners. “We are further pleased to complete this acquisition during the midst of the COVID-19 pandemic, showing the capability of our team to do when markets are hard and opportunities are presented. The Walker & Dunlop teams were integral to the execution of this transaction.”
Located in one of Birmingham’s most highly sought single-family neighborhoods, The Moretti at Vulcan Park is within walking distance to downtown Homewood, a lively and upscale boutique shopping and dining destination. The property is one of only two multifamily communities to deliver in Homewood within the last 20 years and is proximate to Birmingham’s top neighborhoods, schools, lifestyle amenities, and employment centers. Built in 2014, The Moretti features a premium amenity package, high-end in-unit finishes and fixtures, and ample parking.

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