Senior Housing Finance Activity: CBRE, Grandbridge

Hunt Mortgage Group Finances 19-Property Multifamily Portfolio in California

New York City-based Hunt Mortgage Group, which finances commercial real estate across the United States, closed on a complex multifamily portfolio deal, placing 19 individual Freddie Mac Small Balance loans on 19 properties located throughout the Los Angeles area. The Hunt Mortgage Group investment is $31.6 million in total, and the portfolio has one sponsor.

Loans amounts vary in size from $750,000 to $4.1 million. The facilities are all small balance multifamily properties, containing anywhere between eight and 47 units.

“This was a complex transaction with one main sponsor but multiple ownership entities and partners,” Director in the Small Loan Group at Hunt Mortgage Group Mark Besharaty said.

The rate was negotiated and priced below offerings from national and local lending institutions. Every loan was a non-recourse transaction with one-year of interest-only payments. The properties are located in a range of neighborhoods spanning the City of Los Angeles, including: the Wilshire/Westlake submarket,  the Hollywood submarket, Panorama City and Van Nuys.

“The main borrower is a new Hunt Mortgage Group customer,” Besharaty added. “The borrower has more than 30 years of experience in owning and managing multifamily units in the Los Angeles area and currently own over 2,600 units.”

The deals were brokered by Todd Orlando, senior loan officer and Mike Miller, commercial lending specialist at Wintrust Mortgage.  

Grandbridge Arranges $17.9 Million Construction Loan for Seniors Housing Community in Minnesota

Grandbridge Real Estate Capital has closed a $17.9 million loan for the construction of Cardigan Ridge, a 120-unit assisted living, independent living and memory care community in Little Canada, Minnesota. The non-recourse loan has a five-year term, 25-year amortization and an interest rate close to 3.5%.

Hearth Development is building the project, which is currently under construction.

Grandbridge estimates total development costs will be higher than $20 million. A senior vice president in Grandbridge’s Minneapolis office, Dave Rasmussen, originated the loan. A local bank is providing the capital. 

CBRE Originates $17 Million Loan for California Senior Living Community

CBRE National Senior Housing Executive Vice President Aron Will has arranged acquisition financing on behalf of a joint venture between Och-Ziff Capital Management and Auctus Capital Partners for Eden Villa Assisted Living & Memory Care, a 54-unit, 83-bed assisted living and memory care community in San Francisco.

CBRE Multifamily Capital originated a $17.12 million, non-recourse, 10-year fixed-rate loan with 60 months of interest only via its Fannie Mae DUS multifamily loan origination program.

Upon acquisition, the borrower expects an investment of capital to repurpose existing underutilized “dead” space to add additional assisted living and memory care units and to make a variety of aesthetic enhancements to help drive operations.

The borrower plans to retain California-based operator Integral Senior Living (ISL) to manage the property. Currently, ISL is a top-25 senior housing provider in the country and the third largest in California. 

Auctus Capital Partners is a real estate investment company that has $500 million in assets under management and concentrates on seniors housing, commercial and residential properties across the western United States. ACP specializes in the acquisition, turnaround and management of underperforming assets in well-performing markets. Since it was established, ACP has acquired five seniors housing properties in the western United States.

Och-Ziff Real Estate makes investments in real estate and real estate-related assets across Europe and North America. The principals of OZRE have invested in almost $8 billion of private real estate assets, including preferred equity structures, direct equity investments, mezzanine financing, and senior loans. Since 2012, OZRE has invested in 12 seniors housing transactions totaling 1,401 units.

Aron Will also arranged acquisition financing on behalf of a joint venture between Oakwood Real Estate Partners, MorningStar Senior Living and Confluent for MorningStar at Arrowhead, an 85-unit assisted living and memory care community in Glendale, Arizona.

Specifically, CBRE secured a $19.65 million, non-recourse floating rate loan that includes a three-year term with 36 months of interest only and a sub 3% all-in rate from a national bank.

The property was developed by Morningstar, which is contributing equity from the sale to stay on as Confluent/Oakwood’s joint venture operating partner.

MorningStar is a fully-integrated owner, developer and operator of senior living communities. MorningStar has grown to more than 3,000 units currently under management or in development in 25 communities across 7 states. MorningStar currently operates and/or owns 16 senior housing communities throughout Idaho, Nevada, Arizona, Colorado, Wyoming, and Montana.

Oakwood is a commercial real estate private equity company located in Denver that has acquired more than $1 billion of real estate in over 80 investments since 2005 through Oakwood and its predecessor, Parkwood Real Estate Partners.

Confluent is a full-service real estate investment and development company that develops and owns commercial real estate throughout the country. Confluent concentrates mainly on the senior housing, retail, industrial and office sectors.

HFF Secures $42.9 Million Financing for Dallas Seniors Housing Community

Holliday Fenoglio Fowler, L.P. (HFF) secured $42.9 million in construction financing for HarborChase of the Park Cities, a luxury, 134-unit assisted living and memory care community in North Dallas’ Preston Center.

HFF worked exclusively on behalf of a joint venture between L&B Realty Advisors and Silverstone Healthcare Company to place the four-year, floating-rate construction loan with Texas Capital Bank and Guaranty Bank & Trust. Harbor Retirement Associates (HRA), Silverstone’s operating partner, is set to manage the property under the HarborChase brand.

Scheduled for completion in 2017, HarborChase of the Park Cities will have 29 memory care and 105 assisted living units. Property amenities will include a salon, a restaurant-style dining room, lounges, a wellness room and balconies.

The HFF debt placement team was led by Director Jim Curtin, Senior Managing Directors Chad Lavender and Ryan Maconachy, and Associate Director Sarah Baccich.

Written by Mary Kate Nelson