Biz Briefs: NAI Bluestone, Sun Healthcare, HCP, Hallmark & More

NAI Bluestone Real Estate Capital Secures $14.3M in Financing for Senior Housing Facility in Feasterville, PA

NAI Bluestone Real Estate Capital announced that it has secured $14.3M in debt and equity financing for the development of the Arbors at Buck Run, an 85 unit assisted living and memory care facility located in Feasterville, PA. Beneficial Bank provided $9.3M of senior construction debt financing for this transaction, and an additional $5M in equity was secured from a Washington D.C.-based private equity firm.  The Arbors at Buck Run will consist of a two building, 111 bed assisted living and memory care facility located on 9.74 four acres in Bucks County, PA. The renovated facility, which will include a brand new memory care wing, will offer a full complement of services and amenities is planned to be completed in the Spring of 2011.


Sun Healthcare Group, Inc. Announces $225 Million Senior Notes Offering by Subsidiaries of Sabra Health Care REIT, Inc

Sun Healthcare Group, Inc. (NASDAQ: SUNH) recently announced that subsidiaries of Sabra Health Care REIT, Inc. plan to offer, subject to market and other conditions, $225 million aggregate principal amount of senior notes due 2018  in a private offering to qualified institutional buyers.  The Notes will be fully and unconditionally guaranteed, jointly and severally, on an unsecured basis, by Sabra and certain of Sabra’s other existing and, subject to certain exceptions, future subsidiaries. Sun will also initially guarantee the notes until completion of its previously announced plan to restructure its business by separating its real estate assets and its operating assets into two separate publicly-traded companies.  The net proceeds from the offering will be placed in escrow and will be used, together with cash from Sun, to redeem Sun’s existing 9.125 percent senior subordinated notes due 2015, including accrued interest and the redemption premium.



HCP Discloses Impairment Charge on Joint Venture

On October 12, 2010, HCP, Inc. disclosed that that its 35% interest in HCP Ventures II, an unconsolidated joint venture that owns 25 senior housing properties (the “Properties”) leased by Horizon Bay Communities or certain of its affiliates (collectively “Horizon Bay”), was impaired. The impairment resulted from the deterioration of the recent and projected operating performance of the Properties. For the third quarter of 2010, HCP recorded a non-cash impairment charge of $72 million, or $0.23 per diluted share, related to its investment in HCP Ventures II. In addition, HCP Ventures II concluded it should not recognize non-cash rents from Horizon Bay effective July 1, 2010. HCP Ventures II’s determination to cease recognizing straight-line rents from Horizon Bay is expected to reduce the Company’s share in earnings from HCP Ventures II by $3 million, or $0.01 per diluted share, for the second half of 2010. HCP acquired the Properties as part of its October 2006 acquisition of CNL Retirement Properties, Inc.  On January 5, 2007, HCP contributed the Properties (then valued at $1.1 billion and encumbered by a secured debt facility of $686 million) to form a joint venture with an institutional capital partner; the Company retained a 35% interest in the unconsolidated joint venture and the role of managing member.

October 12 HCP 8-K



Hallmark Holdings, LLC Changes Name to Allegro Senior Living, LLC

Hallmark Holdings, LLC recently announced that the company has undergone a rebranding that includes changing its name and the names of its operational entities to better reflect the company’s make up and position it for future growth. Hallmark Holdings, LLC, will now be known as Allegro Senior Living, LLC, leveraging the Allegro name that features prominently in the branding of the individual luxury senior living communities the company has developed over the years. Hallmark’s operational divisions, formerly called Love Management Company, Inc. and Hallmark Development Company, will now be known as Allegro Management Company and Allegro Development Company, respectively.

“Despite operating as one company, we found that employees, residents and their families and others in the senior living industry were often confused about how our ownership, management and development entities were connected,” said Douglas Schiffer, President of Allegro Senior Living, LLC. “Now our name makes it more apparent that we are one company, better describes what we do, and puts our corporate identity in line with that of our individual Allegro properties, which are recognized and well-respected within the senior living industry.”

Toth Architecture Announces Project For Westminster Services of Florida

James E. Toth, Architecture has been retained by Westminster Services of Florida to provide various existing facility  general upgrades, life safety upgrades and hurricane protection renovations for several of the West Florida communities of Westminster Communities of Florida.  The projects include complete replacements of exterior windows and doors along with other wall protective upgrades for hurricane wind and debris impact protection.  James Toth has also been selected and designed Hurricane protection upgrades for  Phase 1 of the 11 story The Shores Assisted Living Tower which has been completed with the design of Phase 2 full window and door replacements for the north side of the building now complete and construction ready to start.