Senior Housing & Care Finance Activity: Berkadia, Lancaster Pollard, Love Funding

Berkadia Originates $62 Million in Senior Housing Financing in Three Transactions

Berkadia Commercial Mortgage recently originated a total of $61.7 million in financings for seniors housing properties located in California, Oregon, Texas, and Virginia.

  • Berkadia Arranges $17.5 Million of Refinancing for Two Emeritus-Operated Communities

    For two communities operated by the Emeritus Corp., Berkadia arranged a total of $17.5 million of refinancing through Freddie Mac’s Seniors Housing program for two communities located in Eugene, Ore. and Portland, Tex.


    The adjustable rate mortgages were used to refinance existing mortgages on the 70-unit Alpine Springs assisted living community in Oregon, and the 110-unit Carriage Inn independent living community in Texas. The loans were originated by Senior Vice President Lisa Lautner and Vice President Heidi Brunet from Berkadia’s Senior Housing Group.“We were very pleased to work with one of the premier operators of assisted living communities in the nation on securing financing for these properties,” said Lautner in a statement. “With Berkadia’s extensive experience in the seniors housing market, we were able to work with Freddie Mac to structure and deliver loans that supported the borrower’s investment objectives and timeline.”

  • Berkadia Closes on $35 Million in Financing for Virginia Retirement Community

    The lender also closed $35 million of financing for The Crossings at Bon Air, a senior retirement living community located in Richmond, Va. The 12-month loan was made through the Berkadia-BBVA Compass Joint Bridge Loan program to provide acquisition financing for the property’s buyer, Smith Packett.Brunet worked on this transaction, which closed on March 6, 2012. The community is located on 17.6 acres of land and features 108 independent living units, 59 assisted living units, and 28 memory care units, which are all more than 90% occupied. Smith Packett developed the community in 2009 as part of a joint-venture with CJSP Healthcare Holdings, and has operated the property under a lease agreement which included a purchase option.
  • Berkadia Provides $9.2 Million in Refinancing for California Assisted Living Community

    Berkadia arranged $9.2 million in fixed-rate financing for Carlton Crown Plaza, a 56-unit assisted living facility located in Sacramento, Calif. The fixed-rate mortgage closed on March 9 and was used to refinance the property’s existing mortgage.The two-story Carlton Crown Plaza is owned and operated by Carlton Senior Living, and opened in 2009. It is more than 90% occupied and shares the same campus with Carlton Plaza of Sacramento, a 128-unit independent, assisted living, and memory care services building, which has a 96% occupancy rate.

    This transaction was also arranged by Brunet.

Lancaster Pollard Provides $53 Million of Financing for Six Senior Living Communities

In recent weeks, Columbus, Ohio-based Lancaster Pollard has arranged $53.1 million of financing for six senior living communities located in Illinois, Louisiana, and Texas.

  • Lancaster Pollard Provides $8.7 Million in Refinancing for Illinois ALF

    Lancaster Pollard recently provided financing for an Illinois assisted living facility through the FHA’s Section 232/223(f) program. Heritage Woods of Yorkville, part of Illinois’ Supportive Living [affordable assisted living] program, was able to get its outstanding $8.3 million of debt refinanced with an $8.7 million non-recourse loan, which carries a 35-year term.“This is the type of project that is fantastic for both the facility’s owners and the FHA portfolio. The property is fully occupied, produces strong debt service coverage, and supports an important part of the senior population in need of quality affordable assisted living,” said Steve Kennedy, Senior Vice President, who led the project and is located at Lancaster Pollard’s headquarters in Columbus, Ohio.
  • Lancaster Pollard Facilitates ALF Refinancing After Arcadia Acquisition

    Arcadia Communities recently acquired an assisted living property in Covington, La. and as part of the transaction assumed the community’s FHA Section 232 loan, which carried a high interest rate. Lancaster Pollard was able to quickly prepare and process an FHA 232/223(a)(7) refinancing application for The Trace at Claiborne Hill, and proceeded to secure a commitment, price the new loan, and close the transaction within two months.The new $7.7 million loan reduced the interest rate by nearly three percentage points, saving the borrower more than $150,000 in debt serve annually. Chris Blanda, out of the Columbus, Ohio office, was the lead banker.
  • Lancaster Pollard Provides $36.7 Million of Financing for Four Texas SNFs

    Lancaster Pollard recently provided $36.7 million of loans to pay off the existing debt of four skilled nursing facilities owned by Granite Investment Group, without need for additional cash contributions by the borrowers. Granite was refinancing the four newly-acquired SNFs, all located in the Austin, Tex. area, and Lancaster Pollard recommended using FHA’s Section 232/223(F) program due to its long-term, fixed-rate, non-recourse, and loan assumption features that take advantage of the current low interest rate environment.Jason Dopoulos, out of the Los Angeles office, was the lead banker.

Love Funding Closes $4.01 Million Refinance for Massachusetts Assisted Living Facility

Washington, D.C.-headquartered Love Funding recently closed a $4.01 million loan refinancing for Compass on the Bay, a Boston-based assisted living facility operated by Senior Living Residences.

Senior Director Leonard A. Lucas out of Love Funding’s Boston office secured the loan through the Department of Housing and Urban Development’s Section 232/223(a)(7) loan program, for refinancing existing HUD-insured healthcare facility loans. The program enabled Senior Living Residences to lock in a low, fixed interest rate and extend the loan back to its original 40-year term, generating approximately $69,000 of annual debt service savings.

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Compass on the Bay has 54 beds and 39 units and provides memory support assisted living with research-based treatment programming for those with memory impairments.

Lancaster Pollard Closes $25 Million Financing Deal for Iowa Healthcare Facility Expansion

Lancaster Pollard recently closed on a $25 million financing deal for a 52,000-square-foot expansion to an Iowa healthcare facility. Construction recently began on Mahaska Health Partnership in Oskaloosa, Iowa, a county-owned critical access hospital, and is expected to last about 15 to 16 months. The expansion will be a two-story addition which will include a surgery suite, inpatient services, and a birthing center.

The U.S. Department of Agriculture provided a $23 million direct loan to fund the expansion, but because USDA direct loans can’t be used to directly fund construction projects, Lancaster Pollard underwrote multidraw bonds and used a competitive bidding process with both local and regional investors to get a low interest rate for construction financing. A separate series of bonds was issued to refund Mahaska’s existing debt for a total interim financing of $25 million, according to Quintin Harris, a vice president at the firm.

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