Senior Housing & Care Finance Activity: Cambridge, Ensign, Oak Grove

Beech Street Capital Closes $8.9 Million Refinance for New Jersey SNF

Beech Street Capital, LLC announced that it provided an $8.9 million HUD Section 223(a)(7) loan to refinance Arcadia Nursing & Rehabilitation Center, a 128-bed skilled nursing facility in Hamilton Square, New Jersey. The borrower had 28 years left on an existing $9 million FHA-insured loan, and Beech Street was able to increase the loan term to 35 years. By extending the loan term, the property could be refinanced with substantial debt service coverage savings to the borrower, and further increased savings through a significantly reduced interest rate.

Beech Street said it expects to see more refinance activity in the seniors market in the coming year.  “The conditions are really favorable right now for anyone with a current HUD-insured mortgage to refinance under Section HUD 223(a)(7),” said Beech Street executive vice president Joshua Rosen, who originated the transaction.. “Not only are rates at all-time historical lows, but HUD has all but eliminated the (a)(7) queue.”

Cambridge Arranges $5.1 Million Refinance for Illinois Nursing & Rehab Center

Cambridge Realty Capital Companies recently arranged a $5.1 million first mortgage loan to refinance the Rock Island Nursing and Rehabilitation Center, a 177-bed skilled care nursing home in Rock Island, Ill. The fully-amortized, 30-year term HUD Lean loan was obtained for the facility’s owner, an Illinois limited liability company, through HUD’s Section 232/223(a)(7) program for an undisclosed interest rate by Cambridge Realty Capital Ltd. of Illinois.

Ensign Gets $21.5 Million Loan from RBS Asset Finance for Future Acquisitions

The Ensign Group, Inc. (NASDAQ:ENSG) recently acquired a $21.5 million, seven-year term loan with a fixed interest rate of 4.75% from RBS Asset Finance, Inc., an affiliate of The Royal Bank of Scotland Group.

“The number of compelling acquisition opportunities we expect to see in 2012, along with attractive financing terms, made this a good time to tap some of the unleveraged equity in our real-estate portfolio,” said Suzanne Snapper, Ensign’s Chief Financial Officer.  “Consistent with our past practice, we expect to continue our pattern of strategic borrowing to support the Company’s continuing expansion,” she added.

Health Care REIT Plans 18 Million-Share Stock Offering

Health Care REIT (NYSE:HCN), headquartered in Toledo, Ohio, announced on Feb. 21 that it’s planning an 18 million-share stock offering in order to generate cash to repay advances taken on its lines of credit, other outstanding debts, and for other purposes. The shares are priced a $53.50 per share.

Oak Grove Capital Provides $17.9 Million of Refinancing for Three Emeritus ALFs

Oak Grove Capital recently originated $17.9 million in fixed-rate HUD Section 232/223(f) financing for three assisted living communities owned and operated by Emeritus Senior Living.

The 30-year, fully-amortizing loans were used to refinance Emeritus at Amber Oaks, a 144-unit community in San Antonio, Tex.; Emeritus at Arborwood, a 54-unit community in Granger, Ind.; and Emeritus at Seabrook, a 60-unit community in Everett, Wash. The portfolio transaction was structured with a master lease agreement where the operations of each community were sub-leased to Emeritus-sponsored operating entities.