Senior Housing Finance Activity: Grandbridge, Cambridge, Cushman & Wakefield

Grandbridge Seniors Housing Group Facilitates Acquisition Financing

Grandbridge’s Seniors Housing and Healthcare Finance Team facilitated bridge financing for the joint venture between Focus Healthcare Partners and Artemis Real Estate Partners on the 192-unit Skagit Valley Senior Village in Burlington, Wash. 

As the project had been purchased without debt, the loan allowed the joint venture to recycle a significant portion of its cash equity. Grandbridge was also able to meet the borrower’s tight time line by closing this transaction less than 45 days from application.

Nonrecourse bridge financing was facilitated by Grandbridge through its proprietary lending platform, BB&T Real Estate Funding, LLC.

Ziegler Closes $13 Million Financing for Senior Living Not-for-Profit

Ziegler recently closed the $13.3 million Cal-Mortgage insured, fixed-rate Series 2013AB Bond issue for Poway RHF Housing, Inc., a California not-for-profit incorporated in 1991 to serve independent seniors who wish to reside in a retirement community.

Poway RHF opened The Gateway, a 134-unit rental independent living facility in Poway, Calif., in 1998. In 2000, it began construction of Gateway Gardens, a 66-unit assisted living facility on an adjacent parcel of land. Gateway Gardens opened in 2002 and has an agreement with a local unaffiliated hospital giving residents access to skilled nursing should the need arise. 

The Series 2013 Bonds, rated ‘A’ by Standard and Poor’s and composed of $8.5 million of taxable Series 2013A and $4.8 million of tax-exempt Series 2013 B Bonds, are being issued to currently refund the Series 2000A and 2000B Bonds which have $8,455,000 and $5,190,000 outstanding, respectively; establish a debt service reserve fund; and pay cost of issuance for the Series 2013 Bonds and the refunding of the prior bonds. 

Cambridge Arranges $65M Loan for Eight Senior Care Properties

Cambridge Realty Capital Companies reports arranging a $65 million conventional mortgage loan to refinance an 827-bed portfolio of eight nursing home properties owned or operated by Premier Health care of Cincinnati, Ohio.

“This was an exceptionally complicated financing that included properties that were owned and operated by Premier, owned by Premier but leased by others, or operated by Premier under a lease agreement with a third-party landlord,” said Cambridge chairman and CEO Jeff Davis. “Many changes were needed along the way to accommodate a tight closing schedule. Complicating the process were constraints on some payoff requirements.” 

The financing included a $57.5 million first mortgage loan for eight separate properties plus a $7.5 million working capital loan for the portfolio. Five properties were located in Cincinnati, along with one each in Springfield, Dayton, and Columbus Ohio. 

Capital for the transaction was provided by GE Capital.

Cambridge: Q3 Loan Origination Requests Continue to Soar

Borrower interest remained high during the third quarter of the year for Cambridge Realty Capital Companies, which reviewed 68 loan origination requests totaling $1.02 billion for the three month period, the firm reports. This compares with 57 requests totaling $858.7 million during the same quarter last year.

September in particular was a red-letter month, as Cambridge processed 20 loan origination requests totaling $316.7 million compared to 15 requests totaling $113.9 million in September 2012.

“One reason the dollar volume of deals we’re looking at was up so sharply in September involves a strategy shift that has Cambridge taking a fresh look at new construction projects,” Cambridge chairman and CEO Jeffrey Davis said.

While lenders typically only close on a relatively small percentage of loan origination requests made, Davis continued, Cambridge tracks this data as an indication of market direction.

“We remain bullish on the long-term outlook for the industry,” he said.

Meta Housing Corporation Secures Financing for 2 Senior Apartments

Meta Housing Corporation recently reported securing financing to break ground on two affordable senior housing developments in Los Angeles County, totaling 116 units.

The project cost for the two communities totals nearly $35 million, according to Meta Housing president John Huskey. 

“The need for affordable housing continues to grow throughout the nation, and is especially prevalent in metro areas such as Los Angeles and Long Beach,” explained Huskey. “Despite the dissolution of the redevelopment agencies, which substantially affected the way in which affordable projects can be financed, we have succeeded in discovering new ways to finance our affordable family and senior communities.”

Meta Housing was able to secure tax credits for both projects, Metro @ Compton, a planned 75-unit, $19.5 million affordable senior apartment community in Compton, Calif., and Long Beach & 21st Apartments, a planned 41-unit, $15 million affordable senior housing community in Long Beach.

Both projects are expected to break ground within the next five months and along with another multifamily project will bring Meta Housing Corporation’s current portfolio of projects under development to seven. The company also has 14 other projects in the pre-development phase.

“We are actively pursuing new projects throughout California, with an emphasis on urban markets and dense suburban markets, in order to continue to build apartment communities that deliver pride and satisfaction to the Cities we serve, and the partners with whom we work,” said Huskey.

Cushman & Wakefield Arranges $44.6M Development Debt, Equity

Cushman & Wakefield’s senior housing capital markets group, a division within Cushman & Wakefield Equity, Debt & Structured Finance, has arranged the capitalization of two development projects for LCB Senior Living.

Capital raised for both projects totaled $44.6 million. Both transactions were financed with construction loans from M&T Bank and with joint venture equity from Prudential Real Estate Investors.

The first of these two closings occurred when LCB closed on construction and development financing for The Residence at South Windsor Farms, an 80-unit independent, assisted and memory care community located in South Windsor.

In October, LCB closed on construction and development financing for The Residence at Brookside, a planned 74-unit independent, assisted and memory care community located in Avon. The community is slated to open in late 2014.

“We are finding that development capital for senior housing, with regard to both equity and debt, continues to have a strong appetite for partnerships with experienced owner/operators,” said Richard Swartz, managing director at Cushman & Wakefield. 

Skilled Healthcare Group Gets $8M HUD Loan for SNF

Skilled Healthcare Group, Inc. (NYSE: SKH) recently announced the funding of a $7.8 million loan insured by the Federal Housing Administration and secured by a skilled nursing facility.

The FHA-insured loan has an all in interest rate of approximately 5.3% and an amortization term of 30 years. The net loan proceeds of $6.8 million have been used to pay down outstanding term debt in Skilled Healthcare Group’s senior secured credit facility, which has a maturity date of April 2016 and an all in interest rate of approximately 7.8%. Skilled Healthcare Group has now closed 10 FHA-insured loans totaling $87.6 million.

Contemporary Healthcare Capital Provides $1.3M Loan for New SNF

Contemporary Healthcare Capital, LLC has provided a $1,300,000 leasehold term loan to a newly constructed 142-bed licensed skilled nursing facility with 81 Medicaid-eligible beds located in Fort Worth, Texas.

The funds will be used for the start-up working capital and to pay closing costs.