Senior Housing Finance Activity: Love Funding, NHI

Love Funding Closes $19 Million Loan for Affordable Apartment Community in Virginia

Washington, D.C.-based Love Funding recently announced the closing of a $19 million loan meant to preserve and refurbish Tysons Tower, an 274-unit affordable senior housing community in Vienna, Virginia. 

Tysons Tower was built in 1976 by The Fairfax Education Association Retirement Housing Corporation (FEARHC) as part of the Virginia Housing Development Authority (VHDA) affordable housing stock, according to a press release. The community required major facility upgrades and its existing rental assistance contract was scheduled to expire in 2017.

Love Funding Director Ann Bolen secured the $19 million loan through the VHDA, after securing a commitment from the U.S. Department of Housing and Urban Development’s (HUD’s) Rental Assistance Demonstration (RAD) program for a fresh 20-year Project Based Rental Assistance (PRBA) contract on 100% of the units. 

A large part of the proceeds from the new loan will finance a variety of property improvements, including a new roof, elevators, windows, heating and air-conditioning systems, and interior unit renovations.

With the help of consultant Gates Dunaway, Bolen collaborated with the Office of Recapitalization at HUD headquarters to secure the new PRBA contract. Additional support on the transaction was provided by Virginia Community Capital.

Cain Brothers Provides $36 Million in Bonds to CCRC in California 

Cain Brothers recently structured $36 million in tax-exempt bonds for Pilgrim’s Place, a not-for-profit CCRC in Claremont, California.

The CCRC, which is currently planning a $9 million renovation, has 182 independent living units, 56 assisted living units and 62 skilled nursing beds. 

Cain Brothers structured the bonds with a 4.25% coupon priced at a discount, and an all-in total interest expense of 4.46% and net present value savings on the advanced refunding portion of over $1.5 million, or 6.4% of refunded par.

Monticello Asset Management Originates $28.5 Million Mortgage Financing for New Jersey SNF

Monticello Asset Management LLC, an investment advisor, recently originated $28.5 million in financing for The Alameda Center for Rehabilitation and Healthcare, a skilled nursing facility in Perth Amboy, New Jersey.

The bridge-to-HUD loan provided capital for the purchase of the facility by an undisclosed senior housing owner-operator. The facility is licensed for 250 skilled nursing beds and has 130 resident rooms.

Ziegler Closes $22 Million in Financing for California CCRC

Chicago-based specialty investment bank Ziegler recently announced the successful closing of the $22.08 million, fixed-rate, Series 2016 Bond issue for Paradise Valley Estates, a CCRC in Fairfield, California. 

The CCRC, which is owned and operated by California not-for-profit corporation Northern California Retired Officers Community (NCROC), has 199 residential living houses, 40 social-model assisted living apartments, 123 residential living apartments, 28 medical-model assisted living units and 60 skilled nursing beds. About 75% of the CCRC’s residents are retired military officers.

Proceeds from the sale of the Series 2016 Bonds will be utilized to refund $8.85 million of outstanding Series 2005 Bonds; fund the construction of a parking structure and an 18-bed memory care expansion to be added to the current Quail Creek assisted living building; and pay certain costs related to the issuance of the Bonds, such as insurance.

The Bonds consist of $22.08 million in term and serial bonds, and amortize over a 30-year period expiring Jan. 1, 2047. The portion allocated toward the refinancing does not extend the final maturity of the 2005 Bonds; the portion allocated to the new money wraps around the refunding portion in years 2032 through 2047, according to a press release. The arbitrage yield, or average yield to call in this case, totaled 4.208%.

KeyBank Provides $15.2 Million Construction Financing for Affordable Housing Community in Florida

KeyBank Real Estate Capital recently provided $15.2 million in construction financing for an affordable housing community in Holiday, Florida, called Park at Wellington II.

KeyBank’s Kyle Kolesar and Jeff Rodman arranged the financing, which included a $4.6 million Freddie Mac loan and a $10.6 million tax-exempt construction loan.

SunTrust Provides $68.3 Million Refinancing for GoodWorks Unlimited’s Seniors Housing Portfolio

SunTrust Bank recently provided a $68.3 million loan to Franklin, Tennessee-based senior housing provider GoodWorks Unlimited LLC, meant to refinance the organization’s 23-property portfolio.

Harborview Capital Partners advised GoodWorks during the deal.

GoodWorks’ 23 communities in Tennessee and Kentucky feature independent living, assisted living and memory care units. The company plans to use the loan proceeds to expand its communities and refinance existing debt.

Dekel Capital Arranges $25.4 Million Loan for Senior Housing Community in Arizona

Los Angeles-based Dekel Capital, a real estate merchant bank, recently arranged $25.4 million in financing for the development of Sage Tucson, an assisted living and memory care community in Tucson, Arizona.

The deal was capitalized with a $17 million construction loan arranged via Dekel’s advisory practice and $8.4 million joint-venture equity funded by the company’s proprietary equity fund, Dekel Strategic Investors. The deal represents the third investment Dekel has made with Willis Development, the borrower.

When completed in early 2018, the two-story community will include 86 assisted living units and 20 memory care units. 

NHI Expands Relationship with Senior Living Management to 15 Senior Housing Communities

Murfreesboro, Tennessee-based real estate investment trust (REIT) National Health Investors, Inc. (NYSE: NHI) recently announced that it has funded the remaining $11.9 million mortgage and mezzanine loan commitment to affiliates of Senior Living Management (SLM) to facilitate the purchase of five senior housing communities operated by SLM. 

Of these communities, four have primary debt financing by HUD. The NHI loans totaling $24.5 million exist under a master credit agreement maturing in August 2021 and bear interest at 8.25% per year, according to a press release. The financing expands NHI’s relationship with SLM to 15 communities in Georgia, Florida and Louisiana, including 10 properties leased to SLM.

Coconut Creek, Florida-based SLM currently operates 23 licensed senior housing communities.

Written by Mary Kate Nelson