Senior Housing Finance Activity: CBRE, LTC Properties

CBRE Arranges $48M Acquisition Financing for Ariz. Seniors Housing Portfolio 

CBRE National Senior Housing arranged a portfolio sale and acquisition financing for the Golden Pond Portfolio.

The portfolio consists of a 26-acre, three property (430-unit) campus in Peoria/Sun City, Ariz. and a 148-unit assisted living/memory care community in Yuma, Ariz. 

CBRE secured a $48.5 million, three-year floating rate loan, which includes 24 months of interest only. 

Matthew Whitlock, executive vice president of CBRE National Senior Housing, arranged the sale of all the outstanding shares in a privately held REIT, which owned the portfolio. Matthew Whitlock and Aron Will, executive vice president of CBRE National Senior Housing, jointly arranged acquisition financing on behalf of the buyer: Silverstone Healthcare Real Estate along with its JV operating partner, an affiliate of Senior Lifestyle Corporation (SLC).

The community will be managed by SLC. 

Ziegler Closes $63M Financing for La. Entry-Fee CCRC 

Specialty investment bank Ziegler closed a $56,695,000 tax-exempt, fixed-rate Series 2015A Bond issue and a $6,615,000 2015B taxable, fixed-rate Bond issue for St. James Place of Baton Rouge, La. 

St. James Place, a new client to Ziegler, is a Louisiana nonprofit corporation that operates a lifecare, entrance fee-based continuing care retirement community (CCRC) on a 50-acre campus approximately one mile from Louisiana State University.

The community consists of 225 independent living units, 36 of which are located in one-story garden homes and patio homes. Assisted living is comprised of 55 assisted living apartments, 40 of which are traditional assisted living units and 15 of which are secured for residents with progressing stages of dementia. Nursing care consists of 90 licensed nursing home beds, which include 64 skilled nursing beds and a 26-bed secured community for residents with more severe dementia.

When the community opened in 1983, it became the first CCRC in the state of Louisiana and remains the only CCRC in Baton Rouge, Ziegler said in a statement.

Proceeds of the Series 2015 Bonds will be used to currently refund 2007A Bonds, two outstanding bank loans, terminate an existing interest rate swap, provide reimbursement for previous capital expenditures, pre-fund certain future capital expenditures, provide for the accelerated payment of certain entrance fee refunds, fund a separate debt service reserve fund for each series of bonds, and pay the costs of issuance for the bonds.

“St. James Place is an established senior living community and the only not-for-profit providing life care contracts in the Baton Rouge marketplace, a strong competitive advantage,” said Rich Scanlon, managing director in Ziegler’s senior living practice. “This transaction will convert their shorter-term bank debt to long-term fixed rate and provide the corporation with a solid platform to 
move forward with their other strategic objectives.”

LTC Properties Amends Mortgage Loan for Mich. Skilled Nursing Properties 

LTC Properties, Inc. (NYSE: LTC) amended a mortgage loan with an affiliate of Prestige Healthcare securing 15 Michigan-based skilled nursing properties to provide $20 million in loan proceeds for the redevelopment of two of the properties securing the loan, and agreed to convey to the borrower two parcels of land held-for-use adjacent to these properties to facilitate the projects.

As consideration for the commitment and associated conveyance, the borrower forfeited its option to prepay up to 50% of the then outstanding loan balance, LTC said in a statement.

“As a result of the forfeiture of the prepayment option, the company expects to record $1.3 million of effective interest income related to this loan during 2015,” LTC said.

LTC Properties Originates $11M Mortgage Loan for Mich. SNF

LTC Properties, Inc. (NYSE: LTC) originated an $11 million mortgage loan with an affiliate of Prestige Healthcare, initially funding $9.5 million with a commitment to fund the balance for approved capital improvement projects.

The loan, which embodies many elements of a triple-net lease, is secured by a 157-bed skilled nursing property in Michigan and bears interest at 9.41% for five years, escalating annually thereafter by 2.5%, LTC said in a statement. 

“The term is 30 years with interest-only payments, and affords LTC the option to purchase the property under certain circumstances, including a change in regulatory environment,” LTC said.

Texas Capital Bank Provides $18M for Fla. Assisted Living, Memory Care Community 

Texas Capital Bank and its development trust, which funds housing projects for seniors, financed the development of The Sheridan at Cooper City, a 111-unit assisted living and memory care project in Cooper City, Fla. 

An affiliate of Senior Lifestyle Corp. obtained an $18.38 million mortgage to build the community. 

Texas Capital Bank provided the loan to developer affiliate SHI II FSLD Cooper City. Formation Development Group of Alpharetta, Ga. is a partner in the project. It acquired the 3.8-acre site for $2.5 million in February.

“After extensive research in the area, we selected this location due to the proximity to the Cooper City Commons stores and supermarket shopping, beautiful parks and other amenities for the use of residents and their families,” said Matthew Phillips, executive vice president of development for Chicago-based Senior Lifestyle, in a statement.

In addition to 72 assisted living and 39 memory care apartments, the project will have 20,000 square feet of commons space featuring dining rooms, living rooms, an internet cafe, an art studio, a salon, a fitness center and physical therapy spaces. It should open in late 2016.

Oak Grove Capital Closes $25.5M FHA Loan for Minn. Senior Housing Community 

Oak Grove Capital closed a $25.5 million loan that was a FHA Section 232/223(f) transaction for Martin Luther Campus, a 250-unit complex located in Bloomington, Minn.

Ken Dayton, managing director of Oak Grove Capital, facilitated the transaction. Closing date was March 18.

Martin Luther offers assisted living, transitional care/therapy, long term care, memory care and adult daycare, according to its website. 

RED Completes $11M HUD Insurance Refinancing for Fla. Seniors Housing Acquisition 

RED Mortgage Capital, LLC, the mortgage lending entity of comprehensive capital provider Red Capital Group, LLC, completed an $11.4 million HUD-insurance refinancing of a balance sheet bridge loan to complete two acquisitions for Livewell Senior Living in Florida. 

RED closed the transaction in under 60 days, and was also able to provide financing for the full amount of the purchase option. RED Mortgage Capital immediately filed a HUD loan application and refinanced the acquisition financing. 

Livewell at Courtyard Plaza is a 68-unit assisted living facility located in North Miami, Fla. with 102 assisted living beds and 18 memory care beds.  Livewell added Limited Mental Health (LMH) licensing to the Courtyard Plaza facility license to allow them to accept residents in need of limited mental health care.

Livewell at Coral Plaza is located in Margate, Fla., which is part of the Miami-Fort Lauderdale-Pompano Beach Metropolitan Area. It is a 100-unit assisted living facility with 120 assisted living beds and 20 memory care beds.  

“We appreciate the opportunity to work with Livewell on their first acquisitions,” Kathryn Burton Gray, senior managing director for RED, said in a statement. “We understood that certainty of execution and timing was critical.  We are looking forward to working with Yanir on future transactions.”

“Being able to close on both the acquisition and permanent financing in less than six months is a credit to RED’s underwriting team,” said James Scribner, managing director for RED.

CBRE Arranges Acquisition Financing for Senior Housing Portfolio 

Aron Will, executive vice president of CBRE National Senior Housing, arranged acquisition financing on behalf of Care Investment Trust LLC for the Mid-Atlantic Portfolio.

The portfolio consists of six communities with a combination of assisted living and memory care totaling 299 units located in Chesapeake, Va.; Bel Air, Md.; Cockeysville, Md.; Glassboro, N.J.; Harrisburg, Pa.; and Hagerstown, Md. 

CBRE secured a $39.5 million loan from a life company, which includes 18 months of interest only. CBRE secured attractive non-recourse quotes from three other lending sources, CBRE said in a statement. 

The communities will be operated by Greenfield Senior Living. 

Written by Cassandra Dowell