Senior Housing Finance Activity: Grandbridge, Greystone

Grandbridge Real Estate Capital Closes $12.2M Mortgage Loan for Ore. Memory Care Facility

The Atlanta-based Seniors Housing and Healthcare Finance Team of Grandbridge Real Estate Capital recently closed a $12,250,000 first mortgage loan secured by Quail Park Memory Care in Eugene, Ore.

Funding for the refinance was provided by BB&T Real Estate Funding, Grandbridge’s balance sheet lending platform, and featured a seven-year term and 30-year amortization.

The loan is prepayable with yield maintenance plus .5% during the first half of the term and for .5% for the second half of the term, except that for the last 90 days of the loan term, the loan may be paid with no fees. This unique feature gives the borrower the comfort of a fixed loan but the flexibility to prepay at a reasonable cost in the event of an opportunity to sell or otherwise recapitalize.

Located in the Portland, Ore., the 49-unit and 70-bed memory care seniors housing community features living areas, family-friendly kitchens, large dining and entertainment rooms, as well as a custom designed “Memory Park” at the heart of the community. It also has a returning path system to allow residents the freedom to enjoy the outside independently and safely.

Senior Vice President Richard Thomas originated the transaction.

Greystone Provides $17M Bridge Loan for Texas Multifamily Property

Greystone, a national provider of multifamily and healthcare mortgage loans, provided a $17,000,000 bridge loan on a multifamily property in Pasadena, Texas. The transaction was originated by JD Stettin, a senior mortgage banker at the firm.

Part of a growing number of bridge loan transactions that Greystone has completed in the Houston area, loan terms included partial recourse and interest-only financing, and the transaction closed in 40 days.

The bridge loan refinance enables the property owner to add value to the apartment complex, which offers over 390 1-, 2- and 3-bedroom units with two community swimming pools, playground and multiple activity courts.

“Greystone’s bridge solution provided us both the time and capital needed to reposition our property as we work toward securing a permanent take-out loan,” the borrower said in a written statement. 

HHC Funding & Congressional Bank Close $16.5M for Six Healthcare Facilities 

Housing & Healthcare Finance’s affiliate company HHC Funding and Congressional Bank closed and funded four loans to six healthcare facilities located in Florida, Maryland, Oklahoma and Texas.  

The loans, with aggregate commitments totaling about $16.5 million, included both asset-based lines of credit and a bridge-to-HUD term loan.  

Proceeds were provided to facilitate acquisitions in addition to refinancing an existing line of credit.  

In connection with the aforementioned refinancing, Housing and Healthcare Finance provided the company with a HUD 223(a)(7) refinance. 

“When we established this lending platform one year ago, we set out believing that there was a need in the marketplace to provide asset-based lines of credit and real estate bridge financing solutions in the $1 million to $7 million range, which is a space that many traditional healthcare lenders have typically shied away from,” said Amy Heller, SVP of Congressional Bank in a written statement. “The portfolio growth that we have achieved in such a short period of time, proves that a high demand for our product exists.

“We have a very active pipeline of new loan transactions and are poised for continued growth within all areas of the healthcare industry.”  

Ziegler Closes $12M Loan for Multi-Site CCRC

Ziegler, a specialty investment bank, closed a $12,025,000 Series 2014 tax-exempt transaction issued by the North Carolina Medical Care Commission, a first of a series of tax-exempt non-bank qualified and bank qualified loans, for The United Methodist Retirement Homes (UMRH). 

UMRH is a multi-site CCRC operator with three campuses in North Carolina (Croasdaile Village located in Durham; Cypress Glen located in Greenville, N.C.; and Wesley Pines located in Lumberton, N.C.).

Combined, the three campuses have a total of 930 units consisting of 626 independent living units, 105 assisted living units and 199 skilled nursing units.

UMRH is ranked as the fourth largest not-for-profit operator of senior living units in NC and 81st in the US according to the 2013 LeadingAge Ziegler 100. 

Ziegler served as the placement agent for a series of transactions that impacts four existing UMRH debt obligations. Proceeds from the Series 2014 Bonds, the first in the series of transactions, will be used to refund a portion of the outstanding Series 2005B Bank Qualified Loan; refund in their entirety the outstanding Series 2004A Fixed-Rate Bonds; refund a portion of the outstanding Series 2005A Bonds and pay certain costs of issuance associated with the refinancing. 

“UMRH was able to take advantage of the expanded bank qualified regulations in 2009 and 2010 to  significantly improve its capital structure,” said Tommy Brewer, managing director in Ziegler’s senior living finance practice, in a written statement.

Johnson Capital Arranges $4.9M Refinance Loan for Ga. Age-Restricted Apartments 

Jeff Kearns, vice president in Johnson Capital’s Irvine, Calif. office, arranged a $4,919,700 loan secured by a 100-unit age-restricted apartment complex in Atlanta, Ga. 

The property, William Booth Towers, was built in 1988 and is in close proximity to downtown Atlanta and multiple freeways.  

Amenities include a community laundry room, mail center, library, activity room with adjacent kitchen, craft room, conference room and outdoor courtyard area. 

William Booth Towers is owned by The Salvation Army.

The new permanent loan has a 24-year term and a fixed interest rate. It was provided by Johnson Capital under HUD/FHA’s FHA 223(a)(7) loan program.

“The low interest rate environment afforded our client an opportunity to execute a streamlined refinance of the FHA-insured loan we closed for them in 2006,” Kearns said in a written statement. “There were no appraisals, no environmental reports and no ALTA Survey.”

CBRE Arranges Equity Recapitalization for Calif. Memory Care, Assisted Living Community 

CBRE Capital Markets arranged an equity recapitalization for The Cottages of Carmel, a 57-unit, 65-bed assisted living and memory care community in Carmel, Calif. 

Aron Will, senior vice president of CBRE Capital Markets’ senior housing debt and structured finance team in Houston, Texas, and Andrew Behrens, vice chairman of CBRE’s debt and structured finance team in San Francisco, arranged the equity recapitalization.

The Freshwater Group and HJ Sims were selected to recapitalize the equity structure.   

Watermark Retirement Communities is a TFG portfolio company which operates and manages their senior housing assets in addition to the 5,180 units they third party manage.

Tucson-based, Watermark is a owner/operator of senior housing that currently manages 32 senior housing communities across seventeen states representing 7,145 units. In 2013, Watermark was the 20th largest senior housing property manager in the country according to the American Seniors Housing Association. 

CBRE Arranges $30.2M Acquisition Financing for Colo. CCRC

CBRE Capital Markets arranged acquisition financing on behalf of Sentio Healthcare Properties, Inc. for St. Andrew’s Village, an entrance fee/rental CCRC community located in Aurora, Colo. The $30.2 million loan was originated through Freddie Mac’s Multifamily Seniors Housing product.

Aron Will, senior vice president of CBRE Capital Markets’ senior housing debt and structured finance team in Houston, Texas, arranged the acquisition financing.

The 246 unit/264 bed community contains 71 entrance fee independent living units, 75 rental independent living units, 60 assisted living units and 40 skilled nursing units.

CBRE closed the loan and secured a commitment from Freddie Mac  to purchase the 9 year float-to-fixed-rate mortgage which includes a 48 month interest only period.

The first two years of the loan are a floating rate term followed by a seven year fixed rate term. The community will continue to be operated by affiliates of Evergreen Senior Living. Sentio’s business plan for the community may include a large scale expansion. Due to the extensive nature of the expansion, the borrower required a balance sheet execution for the first 24 months to enable them to complete the work prior to securitization.

Additionally, this transaction represents one of Freddie Mac’s first partial entrance-fee continuing care retirement communities (CCRC’s) in its history, CBRE says in a written statement.

“The Float-to-Fixed feature enables Sentio to enhance this property over the short term while locking in a favorable, fixed interest rate at closing for the long term, while also fitting well into Freddie Mac’s overall securitization strategy,” said Steve Schmidt of Freddie Mac.

Founded in 2006, Sentio is a non-traded healthcare REIT with a portfolio of 23 properties nationally. Within the portfolio, Sentio currently maintains 10 senior housing operating partners.

Evergreen will continue to manage the property under a sale-leaseback structure.

Written by Cassandra Dowell