Senior Housing Finance Activity: Greystone, CBRE

Greystone Provides $49.4 Million in Freddie Mac Financing for Seniors Housing in California and Colorado

Greystone, a real estate advisory, investment and lending firm, announced it provided $49.9 million in Freddie Mac loans to refinance two assisted living and memory care communities in Denver, Colorado, and Carmichael, California. Greystone Managing Directors Scott Kavel and Cary Tremper originated the separate loans.

A $25.15 million, 10-year, fixed-rate Freddie Mac Seniors loan was granted to Oakmont Senior Living LLC for Oakmont of Carmichael, a 71-unit assisted living and memory care community in Carmichae. The loan has a 30-year amortization.

A separate $24.25 million Freddie Mac Capital Markets Execution loan was given to Spectrum Retirement Communities for HighPointe Assisted Living and Memory Care, a 97-unit community in Denver. The loan has a seven-year term and three years of interest only.

SunTrust Bank Provides $21.2 Million in Financing for CCRC

SunTrust Bank has provided $21.2 million in financing to add home health care services and independent living cottages to Lucy Corr Village, a continuing care retirement community (CCRC) in Chesterfield, Virginia.

Specifically, SunTrust structured three separate loans to refinance Lucy Corr’s existing bond debt, leading to interest cost savings that can be utilized for the future projects. This is the third time in the past 10 years that Lucy Corr Village has built new independent living units.

The number of independent living units in the expansion and additional details were not disclosed.

HFF Arranges $32.15 Million Financing for Seniors Housing Development in Florida

Holliday Fenoglio Fowler, L.P. (HFF) (NYSE: HF) revealed it arranged $32.15 million in joint venture equity and construction financing for the development of Watercrest of St. Lucie West, a 128-unit seniors housing community due for completion in 2017 in Port St. Lucie, Florida.

HFF worked on behalf of Watercrest Senior Living Group, the developer, to arrange $11.15 million of joint venture equity capital from a third party. Additionally, HFF secured the $21 million construction loan for the partnership via Wells Fargo’s Senior Housing Finance Group, a nationally focused specialty unit within Wells Fargo’s Commercial Real Estate Platform.

The HFF equity and debt placement team representing the developer was led by Ryan Maconachy, Ed Coco and Chad Lavender, all of whom are senior managing directors.

KeyBank Arranges $85 Million Permanent Life Insurance Company Loan for Seniors Housing in Dallas

KeyBank Real Estate Capital recently closed an $85 million permanent loan for Tradition Senior Living, a Dallas-based owner and operator of senior living communities in Texas.

The loan is secured by The Tradition Lovers Lane, a 311-unit seniors housing community in Dallas. The community, which opened in November 2014, has 202 independent living units, 85 assisted living units and 24 memory care units.

Monique Bimler of KeyBank’s Healthcare Mortgage Banking Group arranged the fixed-rate, 10-year loan through a life insurance company.

Peter Trazzera and Grant Saunders of KeyBank Real Estate Capital’s Healthcare Group originated the initial construction loan and agented the syndication of the loan with three additional banks.

CBRE Arranges Financing for Independent Living Community in California

Aron Will, vice chairman of CBRE National Senior Housing, and Kevin Randles, senior vice president of CBRE’s Debt and Structured Finance office in Sacramento, arranged financing on behalf of Sacramento-based senior living operator Ray Stone, Inc. (“RSI”) to refinance Hilltop Commons, an 84-unit independent living community in Grass Valley, California.

CBRE Multifamily Capital originated a fixed-rate loan of an undisclosed amount through its Fannie Mae DUS multifamily loan origination program.

RSI will continue to manage Hilltop Commons, which it has been operating since 2005. RSI currently operates five additional senior living communities in similar markets within California comprising more than 800 units.

Ziegler Closes $57.46 Million Financing for Bayview Manor Homes

Ziegler, a Chicago-based specialty investment bank, announced it has closed a $57.46 million, un-rated, fixed-rate Series 2016 Bond issue for Bayview Manor Homes, a CCRC in Seattle’s Queen Anne neighborhood doing business as Bayview.

Bayview, a new client to Ziegler, is a Washington not-for-profit corporation and 501(c)(3) organization that was founded in 1961.

Currently, Bayview owns and operates a CCRC with more than 210 residents in its 124 independent residential apartments, 45 assisted living units and 50 skilled nursing home beds. Additionally, Bayview operates an intergenerational childcare center located at the community for as many as 44 kids.

Proceeds of the 2016 Bonds will be utilized to (i) reimburse or finance the corporation for a part of the costs of building and equipping additional independent living units and a two-story assisted living and memory care center; (ii) finance or reimburse the corporation for additional capital improvements at the community; (iii) refund the corporation’s outstanding Series 1994 Bonds; (iv) pay a part of the interest on certain of the Bonds; (v) fund subaccounts of a Debt Service Reserve Fund corresponding to each series of the Bonds; and (vi) pay costs of issuance related to the Bonds.

“The Bayview project is a classic repositioning story of a long-standing, deeply-rooted senior living community finding the need to reinvest in its campus in order to meet the market demands of current and future seniors,” Sarkis Garabedian, senior vice president in Ziegler’s senior living practice, said in a press release. “The Board and management team were diligent in crafting a project plan to balance these demands with financial feasibility, carefully staying within its financial benchmarks that were set at the outset of the process.”

CBRE Arranges $25 Million in Financing for Seniors Housing in Califodnia

Aron Will, vice chairman of CBRE National Senior Housing, along with Scott Peterson, senior vice president, and Bill Chiles, executive vice president of the CBRE Debt & Structured Finance group in San Diego, arranged $25 million in financing on behalf of The Grant Companies for The Pointe at Lantern Crest.

The Pointe at Lantern Crest is a recently stabilized, 102-unit Class “A,” independent and assisted living community in Santee, California.

The Pointe represents Phase II of a senior housing campus developed by The Grant Companies. Phase I, The Ridge at Lantern Crest, was financed through a CBRE-originated Freddie Mac loan in 2014.

CBRE originated the $25 million loan through the Freddie Mac Seller Servicer direct lending program. The 10-year fixed-rate mortgage includes 72 months of interest only. Lantern Crest Management will continue to operate the community.

The Grant Companies, established in 1989, has spent the past 24 years developing over $500 million in projects ranging from senior housing to medical office buildings and other commercial developments.

California-based Lantern Crest Management, which was formed by The Grant Companies, operates all 182 units at both The Ridge and The Pointe. Lantern Crest Management is set to act as a third-party manager for The Grant Companies’ owned assets and also intends to expand its third-party management of high quality assets in California.

Grandbridge Secures $9.5 Million in Financing for Seniors Housing Community in South Carolina

Grandbridge Real Estate Capital’s Seniors Housing and Healthcare Finance group recently facilitated the closing of a $9.5 million first mortgage loan secured by Benton House of West Ashley, a 59-unit seniors housing community that will soon be built in Charleston, South Carolina.

BB&T provided funding for the construction loan.

“Grandbridge, as a wholly owned subsidiary of BB&T, was able to utilize our fully integrated commercial finance platform to secure the construction loan with our BB&T lending associates to make sure the needs of our repeat client and the bank were met in this competitive environment,” Senior Vice President Richard Thomas said in a press release.

Grandbridge’s dedicated Seniors Housing and Healthcare Finance Group offers construction, nonrecourse acquisition/bridge and permanent financing options to owners of seniors housing across the country.

Written by Mary Kate Nelson