Senior Housing Finance Activity: Berkadia, Lancaster Pollard, Cambridge

Housing & Healthcare Finance Closes $58M in HUD Loans

During November and December Housing & Healthcare Finance closed a total of $58,789,000 in HUD loans.

The loans included a total of $22.5 million in HUD Section 232/223(f) loans to refinance four skilled nursing facilities in Missouri.

Another $19.4 million of loans were through the HUD Section 232/223(a)(7) program to refinance two skilled nursing facilities in Missouri.

HHF also closed a $16.9 million, HUD Section 232/223(f) loan to refinance a 240-bed skilled nursing facility in the Bronx, N.Y.

The average interest rate for all seven loans was in the low 4s, according to HHF, representing a significantly lower rate compared to the existing rate in all cases and extending the terms of the loans. 

Congressional Bank, HHC Funding Close SNF Financing

Congressional Bank and HHC Funding, an affiliate of Housing & Healthcare Finance, LLC, announced recently the closing of a $5.5 million asset-based line of credit to Cypress Skilled Nursing, LLC and their affiliates. The line of credit will be used for ongoing working capital needs associated with Cypress Skilled Nursing’s acquisition of the operations of nine skilled nursing facilities located in Georgia.

Contemporary Healthcare Capital Provides $9.9M of Acquisition Financing

Contemporary Healthcare Capital, LLC has provided approximately $9.85 million of financing for the acquisition of Park Place, a 100-bed, 86-unit assisted living and memory care community in Spartanburg, S.C. 

The financing is broken into a $7,550,000 senior mortgage loan, $1,400,000 mezzanine loan, and a $900,000 preferred equity investment used for the acquisition of the facility, renovation, working capital and closing costs.

Contemporary Healthcare Capital Provides $22M of Acquisition Financing

Contemporary Healthcare Capital has provided an $18,500,000 senior mortgage loan and a $3,000,000 mezzanine loan to two skilled nursing facilities, both located in California.

The funds were used for the acquisition of both facilities and to pay closing costs.

RED CAPITAL Tops FHA’s Lender List for 2013

RED CAPITAL GROUP, LLC announced recently that according to Federal Housing Administration reports, its mortgage banking arm, Red Mortgage Capital, LLC, is the top ranked FHA-approved lender in the country for all FHA loan closings. In 2013, Red Mortgage Capital provided 255 FHA-approved LEAN and MAP loans totaling volumes over $2.4 billion, which is 11 percent of all FHA-approved loans.

“We are proud to be the highest-ranked multifamily FHA lender in the country again this year,” said Mike Moran, Chief Executive Officer, Red Capital Group, in a statement. 

Of the 255 FHA-approved loans that were closed by Red Mortgage Capital in 2013, 193 of those were Multifamily Accelerated Processing (MAP) closings totaling over $2 billion, ranking the firm number one by loan count in this category. Section 232 LEAN program closings represented $452 million, ranking the firm number three in this healthcare category.

Berkadia Provides $50 Million of Acquisition Financing for Capital Senior Living

Berkadia Commercial Mortgage LLC recently announced it arranged four acquisitions loans totaling $49.3 million for Capital Senior Living’s recent acquisition of four communities for $65 million.

Senior Vice President Lisa Lautner of Berkadia’s Seniors Housing and Healthcare group originated the loans through Fannie Mae, used for three properties in Indiana and one in South Carolina. 

Each 10-year, fixed-rate loan amortizes over 30 years with a loan-to-value ratio in the low to mid-70% range. The loans are as follows: $21 million for Sugar Grove Senior Living, $12.4 million for Woodview, $10.3 million for River Crossing Independent & Assisted Living Community—all in Indiana—and $5.6 million for Dillon Pointe Assisted Living and Memory Care in Spartanburg, S. C.  

Cain Brothers Arranges $11.3M Loan Issuance for Eskaton Properties

Cain Brothers served as investment banking advisor in connection with the issuance of a $11.27 million Taxable Refunding Commercial Loan for Eskaton Properties, Inc., a California nonprofit 501(c)(3) corporation. 

The financing strategy consisted of a taxable commercial loan with a bank to refinance Eskaton’s Series 2007 Bonds for Granite Bay. Cain Brothers managed an expedited financing process with closing occurring approximately 60 days after receipt of the final term sheet. The Bank commitment resulted in a low cost of capital below 1.5% based on interest rates as of this date.

Cambridge Arranges $14.3 Million Financing for Ill. SNF

Cambridge Realty Capital Companies recently arranged a $14,366,500 loan to refinance the Alden Estates of Shorewood, a skilled nursing facility in Shorewood, Ill.

The fully-amortized, 38-year loan was arranged for the owner using the HUD Section 232/223(a)(7) funding program and was underwritten by Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-insured HUD loans.

Alden Estates of Shorewood is a 100-bed skilled care nursing home. Alden Estates of Shorewood provides a number of services including orthopedic rehabilitation, physical therapy, occupational therapy, speech therapy, neurological rehabilitation, cardiac rehabilitation, pain management and post-operative care. 

Cambridge Arranges $13 Million Loan for Chicago Healthcare Facility

Cambridge also recently announced it has arranged a $12,960,000 loan to refinance the Alden Village North skilled pediatric care home located in Chicago, Ill.

The fully-amortized, 37-½ year loan was arranged for the owner using the HUD Section 232/223(a)(7) funding program and was underwritten by Cambridge Realty Capital Ltd. of Illinois.

Alden Village North is a 150-bed skilled pediatric care home. It provides a range of medical and health services which include orthopedic and neurological rehabilitation, respiratory care, pain management, post-operative care, respite care, long-term care and hospice care. 

Cain Brothers Places $18.9M of Bonds for Canterbury Healthcare

Cain Brothers served as investment banking advisor and structuring agent in connection with the issuance of $18.89 million Revenue Bonds Series 2013, for Canterbury Health Care, Inc., a Michigan 501(c)(3) nonprofit corporation that owns and operates a continuing care retirement community known as Canterbury-on-the-Lake in Waterford, Mich. 

The bond issue refinanced Canterbury’s Series 2009 Bonds with a bank direct purchase. Cain Brothers worked with the Purchaser in securing a seven-year fixed rate capital commitment and favorable terms and conditions. The financing improved Canterbury’s cash flow and lowered its cost of capital by 0.92%. The plan of finance included a termination of an existing interest rate swap and the execution of a new interest rate swap. Cain Brothers successfully managed and expedited the financing process with closing occurring approximately 90 days after receipt of the final term sheet.

Greystone Closes $54.5M Bridge Loan for Senior Housing Acquisition 

Multifamily and healthcare mortgage lender Greystone recently announced it has closed a $54.5 million bridge loan for acquisition of The Hamptons Center for Rehabilitation and Nursing in Southampton, New York. Fred Levine, originator in Greystone’s Monsey, New York office, led the transaction. 

The interest-only bridge loan, closed by Greystone in 90 days, is the latest of multiple loans that Greystone has secured on behalf of SentosaCare over the past decade.

The Hamptons Center for Rehabilitation and Nursing is a 280-bed skilled nursing facility that currently has a 96.8% occupancy rate. The healthcare center provides a full range of services for its residents including rehabilitation, medical, housekeeping, lab work and physical therapy.

Lancaster Pollard Arranges $54M of Financing for Senior Housing Transactions

$18.6 Million Refinance for 2 Mich. Assisted Living Communities 
Lancaster Pollard recently assisted Church of Christ Care Center with a $9.7 million refinance. Originally constructed in 2001, Church of Christ Care Center is a 96-unit assisted living and Alzheimer’s care facility located in Clinton Township, Mich. Using the FHA Sec. 232/223(a)(7) program, Lancaster Pollard was able to lock in a low interest rate despite a volatile interest rate environment. The successful transaction will generate substantial debt service savings and better position the facility to serve its residents in the future.

In another transaction, Lancaster Pollard helped an assisted living and memory care community in Niles, Mich., refinance $8.9 million in debt using the FHA Sec. 232/223(f) program. The refinance allowed the facility to terminate its existing interest rate swap, refinance its existing senior note and construction loan for a 12-unit expansion completed in 2012, and make a significant deposit to its replacement reserve for ongoing capital needs. Brendan Healy, vice president and Lancaster Pollard’s healthcare banker for Michigan and Wisconsin, managed both transactions.

$2.55 Million Acquisition Loan for Texas Assisted Living Community
Lancaster Pollard recently obtained a $2.55 million bridge loan for a buyer to purchase Wynwood of Vernon, a 48-unit assisted living community in Vernon, Texas that has since been renamed Eagle Flats. The buyer intends to obtain long-term financing through the FHA Section 232 program for the community, managed by Renaissance Senior Communities. Chris Blanda, vice president with Lancaster Pollard’s Columbus office, led the transaction.

$32.7 Million Refinance for Cleveland CCRC
Judson Continuing Care Retirement Community, in Cleveland, Ohio, recently obtained $32.7 million in direct funding with the assistance of Lancaster Pollard. Judson wanted to replace an expiring letter of credit that enhanced outstanding variable rate demand bonds with a more permanent financing structure. Lancaster Pollard developed a credit profile and solicited financial institutions that would provide the lowest cost of capital with the greatest flexibility. By choosing to refund the outstanding bonds privately, Judson was able to obtain tax-exempt, fixed-rate bonds at below 3% for a seven-year term. Kass Matt, senior vice president and regional manager, guided the transaction.