Age-restricted rental housing, without care services, is underwritten as apartments with a narrower tenant base. In the K-Deal securitizations closed from January through August 2026, the loans price within about 14 basis points of conventional apartments, borrowers favor 10-year money, and occupancy is holding above 92 percent while new supply has slowed sharply.
- Loans tracked 33 · 4,428 units
- Cut-off loan balance $490M
- Ten-year share 67%
- Weighted cap rate 5.51%
How the loans are priced.
The weighted coupon is 5.37 percent. Loan-to-value is 63.1 percent against 64.7 percent for conventional loans, and coverage is 1.35x against 1.38x. The capitalization rate is 5.51 percent against 5.43 percent. Value is $169,000 per unit against $220,000, and the loan is $105,000 per unit against $141,000. Sixty-seven percent of the balance is 10-year, twice the conventional share. Full-term interest-only is 18 percent. Lenders do not price it as seniors housing.
The communities.
New York is 27 percent of the balance, led by Long Island, and Virginia is 18 percent. The median year built is 2000. Occupancy was 92.6 percent in the second quarter of 2026, and 93.5 percent in communities open at least two years. About 1,000 units opened in the first half of 2026, against roughly 7,000 a year from 2023 to 2025. The expense ratio is 47.0 percent against 41.6 percent for conventional apartments, reflecting amenity programming and older, higher-tax vintages. Communities built since 2010 appraised at a median $266,000 per unit, against $108,000 for older stock.
What that means for debt.
An illustrative coupon, marked to Treasuries at the end of September 2026, is about 6.42 percent — roughly 105 basis points above the first-half pricing in the tape. Sized to 1.25x coverage on a 30-year amortization, the loan is about $95,000 per unit, 10 percent below the $105,000 in the tape. Age-restricted rentals without services qualify for a conventional agency execution. In New York and other high-tax states, the tax line is what moves coverage. Low turnover is what makes a 10-year term fit the tenancy.
Loans are identified by market only. Debt figures are illustrative, marked to Treasuries as of 28 September 2026. For discussion only; not a valuation opinion, investment advice, or an offer to lend.