Senior Housing Finance Activity: Mainstreet Health Investments, SunTrust Banks

SunTrust Banks Closes on Acquisition of Pillar Financial’s Multifamily Business

SunTrust Banks Inc. (NYSE: STI) recently closed on its previously announced acquisition of all of the assets of the operating subsidiaries of Pillar Financial LLC, which includes receiving Freddie Mac, Fannie Mae, and Federal Housing Administration Agency license transfer approvals.

The acquired assets include Pillar’s multifamily lending business, which involves senior housing, affordable housing, health care properties and manufactured housing specialty teams. In addition, the assets include Chicago-based Cohen Financial’s commercial real estate investor services business, advisory services and offering loan administration, as well as its mortgage banking business.

Moving forward, the Cohen Financial and Pillar Financial businesses will operate within SunTrust Bank as a part of the Commercial Real Estate (CRE) line of business, which is a component of SunTrust’s Wholesale Banking segment.

SunTrust’s Robinson Humphrey acted as financial advisor to SunTrust for this deal. Beekman Advisors served as the strategic advisor for Pillar.

Mainstreet Health Investments Inc. Completes Previously Announced Offering

Mainstreet Health Investments Inc. recently completed its previously announced offering of $45 million aggregate principal amount of 5.00% convertible unsecured subordinated debentures of the company due Jan. 31, 2022. The offering was underwritten by a syndicate of underwriters led by National Bank Financial Inc., CIBC Capital Markets and BMO Capital Markets.

Mainstreet Health Investments plans to use the proceeds from the offering to finance the previously announced acquisition of a portfolio of three memory care communities located in Texas and Arkansas. These newly developed assets further expand the Mainstreet Health Investments’ property-type and geographic diversification, as well as add Memory Care America, LLC as a new operating partner.

“We continue to execute on the strategy we laid out when the Company completed its initial public offering in June of this year,” Scott White, Mainstreet Heath Investments’ president and chief operating officer, said in a press release. “This transaction is a perfect example of our ability to source high-quality assets with exceptional operating partners.”

Harborview Closes $30 Million Bridge-to-HUD Refinancing for California Skilled Nursing Facility

Harborview Capital Partners, a commercial real estate equity, finance and advisory firm, recently arranged a $30 million bridge-to-HUD refinancing for a 133-bed skilled nursing facility in Van Nuys, California. The borrower was not disclosed.

The loan involves a floating rate above LIBOR with 24 months of interest-only payments. After that 24-month period, the loan will feature a 25-year amortization and two-year term with one-year extension options.

The refinancing provides the borrower with $12 million in cash-out proceeds.

Harborview Principals Ephraim Kutner and Jonathan Kutner, and Senior Originator Eli Kutner, arranged the financing.

KeyBank Provides $12.8 Million in Financing for Wisconsin Assisted Living Portfolio

KeyBank Real Estate Capital recently provided $12.8 million in FHA financing for a two-property assisted living portfolio, made up of Prairie Ridge at Waupun and Prairie Ridge at Beaver Dam.

Prairie Ridge at Waupun has 47 assisted living units and is located in Waupun, Wisconsin. The property was constructed in 1999 with an addition built in 2008.

Prairie Ridge at Beaver Dam, located in Beaver Dam, Wisconsin, was constructed in 1998 and renovated in 2010, and is made up of 27 assisted living units.

John Randolph of Key’s Commercial Mortgage Group arranged the financing, which was utilized to pay off existing debt on the property.

Pioneer Realty Capital Closes $7.2 Million Loan to Refinance Texas Assisted Living Community

Texas-based commercial mortgage, non-bank lender Pioneer Realty Capital, LLC recently closed a $7.2 million loan to refinance the Villa Asuncion Assisted Living Facility in Princeton, Texas.

The 504 Debt Refinance Program is meant to help small business owners create liquidity and obtain access to capital. Pioneer Realty Capital made use of this program to refinance the Villa Asuncion Assisted Living Facility, which resulted in a lowered interest rate from 7.2% to 4.25%.

The increase in cash flow enables the business to grow and create more jobs, according to Pioneer Realty Capital.

Dwight Capital Arranges $4.1 Million Refinancing for South Dakota Affordable Housing Portfolio

Dwight Capital recently arranged $4.15 million in refinancing for four affordable housing communities in South Dakota. The properties include Iron Creek Plaza and Lookout Mountain View in Spearfish, South Dakota, and Bella Vista Village and Meadowlark Plaza in Belle Fourche, South Dakota. The properties have 24 units each.

The 35-year loans were financed via HUD’s 223(f) program and were arranged by Dwight Capital’s Adam Sasouness.

Dougherty Provides $9.2 Million Bridge Loan to Refinance Assisted Living Community in Michigan

Dougherty Funding LLC recently provided a $9.2 million bridge loan to refinance the 39-unit Gardenview Assisted Living and Memory Care in Calumet, Michigan.

Dougherty Funding acted as lead lender and servicer for the loan, and Calumet Facility LLC and Calumet Operating LLC was the borrower.

CBRE Arranges $16.72 Million Refinancing for California Senior Housing Community

CBRE National Senior Housing Vice Chairman Aron Will recently arranged refinancing on behalf of Washington, D.C.-based Capitol Seniors Housing for Welbrook Arlington, a 207-unit independent living, assisted living and memory care community in Riverside, California.

CBRE Multifamily Capital originated a $16.72 million, 10-year, non-recourse floating-rate loan with full term interest only via its Fannie Mae DUS Multifamily loan origination program.

Post-close, the property will continue to be operated by Irvine, California-based senior housing owner/operator MBK Senior Living.

Capitol Seniors Housing currently owns 20 properties with a collective 1,967 units.

Kennedy Funding Financial Closes A $1.705 Million Loan for New Jersey Assisted Living Community

Kennedy Funding Financial, a direct private lender headquartered in Englewood Cliffs, New Jersey, recently closed on a $1.705 million loan to EW Acquisition LLC. The proceeds of the loan will be utilized for working capital and to fund infrastructure improvements at The Seasons at East Windsor, a proposed 121-unit/148-bed assisted living community in East Windsor, New Jersey.

The property was bought  for $625,000 in July 2005. The 89,038-square-foot improvements are slated for completion in 2017 and located on a 3.97-acre site. The development will feature a combination of assisted and memory care units, according to a press release.

Written by Mary Kate Nelson