Senior Housing Finance Activity: Capital One Named Top Lead Arranger

Capital One Named Top Lead Arranger for Health Care Leveraged Loans Up to $1 Billion

Capital One has been named the No. 1 lead arranger for health care leveraged loans up to $1 billion in size, according to Thomson Reuters.

The acquisition of GE Capital’s Healthcare Financial Services lending business, which held the top spot for the past three years, propelled the newly combined Capital One Healthcare organization to lead the industry with more than $11 billion in total outstanding balances, according to a news release. Capital One Healthcare finances acquisitions, recapitalizations, working capital needs and funding early-stage commercialization efforts across 45 health care sub-sectors, including long-term care.

“2015 was truly a landmark year as we united two exceptional teams,” Capital One Healthcare President Darren Alcus said in a prepared statement. “We’re excited about the opportunities this will create as we bring together a best-in-class group of domain experts and continue to deliver critical financial solutions for our clients.”

National Equity Fund Partners with National Church Residences for $50 Million Affordable Housing Investment Fund

National Equity Fund (NEF), a syndicator of low income housing tax credits, has partnered with not-for-profit affordable senior living provider National Church Residences to establish a $50 million investment fund for affordable housing for seniors.

NEF has provided $45 million and National Church Residences contributed $5 million to the fund, which is meant to be used to acquire existing affordable senior housing communities for renovation and preservation. The first investment using the fund was completed on Dec. 31, with $3.68 million deployed to purchase Big Bethel Village in Atlanta.

“The resources needed to create new affordable senior housing continue to shrink…Preserving the affordable senior housing communities that already exist is so important,” National Church Residences President Michelle Norris said in a news release.

The money is expected to be used over the next three years. In addition to Big Bethel Village, acquisition plans include Antioch Tower in Cleveland, Ohio and Clinton Place in Mt. Clemens, Michigan during the first quarter of 2016.

Lancaster Pollard Closes $4.5 Million Refinance for Community in Washington, Arranges $43.6 Million Construction Loan for Ohio CCRC

Lancaster Pollard recently closed on a $4.5 million refinance for Evergreen Estates Retirement & Assisted Living Community in Clarkston, Washington through the FHA Se. 232/2223(f) program. The financial services firm that helps health care senior living and housing providers with financial advice and solutions also arranged for $43.6 million in Series 2015A and Series 2015B Bonds for Methodist ElderCare to construct a new continuing care retirement community (CCRC) in New Albany, Ohio.

The $4.5 million loan will help Evergreen Estates refinance its existing debt and fund its replacement reserve account. The new FHA-insured structure involves a lower interest rate than Evergreen’s former bank loan, a 30-year term and positions the facility for future expansion, according to a news release.

The $43.6 million in bonds were privately placed with two regional banks to fund the construction of Wesley Woods, which will offer detached villa-style cottages. The capital will also allow for the addition of a wellness center at Wesley Ridge, another Methodist Eldercare facility that offers assisted living and independent living. Finally, the debt structure will refinance the provider’s existing Series 2005, 2010 and 2011 tax-exempt bonds.

CBRE Facilitates $20.1 Million Acquisition Financing for Assisted Living Community near Seattle

CBRE National Senior Housing has arranged a $22.1 million loan for owner and developer Capitol Seniors Housing to acquire and renovate Harbour Pointe Retirement and Assisted Living Community, a 107-unit independent and assisted living community in the Seattle suburb of Mukilteo.

Capitol plans to use $1 million of the loan to convert 31 assisted living units into a memory care wing, among other planned improvements. The non-recourse, floating-rate loan includes a five-year term with 36 months of interest-only payments. Capital is provided by a national bank.

Capitol will lease the property to Milestone Retirement Communities, a Vancouver, Washington-based operator of 30 communities in 10 states.

Love Funding Secures $9.1 Million for Refinancing of Affordable Senior Housing in Brooklyn, New York, Closes $10 Million Loan for New Community in West Palm Beach, Florida

Love Funding, a provider of FHA multi-family, affordable and health care financing, has secured a $9.1 million loan for the refinancing of JASA’s Scheuer House of Coney Island, an affordable senior housing property located in Brooklyn, New York. The company also announced the closing of a $10 million loan blending tax credits and FHA financing for the construction and financing of a new seniors-focused apartment community in West Palm Beach, Florida.

The loan for JASA was secured through the U.S. Department of Housing and Urban Development’s (HUD) 223(f) program, enabling JASA to preserve rent-subsidized units at the property, fund more than $4.8 million in repairs and reserves, provide additional equity to use for future projects and move to 35-year non-recourse debt at a fixed interest rate.

Schemer House of Coney Island offers 197 age-restricted studio and one-bedroom apartments. Planned improvements and repairs on the building include elevator upgrades, new kitchens and bathroom refurbishments, renovations of common areas and flood prevention measures. The additional equity will allow JASA to look into further opportunities to build more affordable housing and senior communities in the area.

The $10 million loan was arranged for the West Palm Beach Housing Authority fund the construction of Paul Laurence Dunbar Senior Complex, with plans to offer 99 units for people age 62 or older. Construction is part of the larger redevelopment of a 17-acre public housing project formerly known as Dunbar Village, and the new senior living complex will consist of two three-story residential buildings and a separate clubhouse.

The project will be funded through a combination of 4% low-income housing tax credits, tax-exempt bonds, a Florida State Apartment Incentive Loan with an Extremely Low Income bonus, along with the FHA-insured mortgage. The FHA portion was secured through HUD’s 221(d)(4) loan insurance program, which provides non-recourse, fixed-rate financing for a term of up to 40 years for the construction and permanent financing of new apartments or the substantial rehabilitation of existing apartments.

Written by Kourtney Liepelt





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