Senior Housing Finance Activity: Capital One Bank, Beech Street, Healthsense, & More

Capital One Closes $11.5 Million Loan for Tex. Senior Care Center

Capital One Bank recently closed a $11.5 million, five-year senior secured term loan for Advanced Rehabilitation and Healthcare of Bowie, a newly constructed skilled nursing facility that opened in the spring of 2012 in Bowie, Tex.

The loan was used to refinance the construction loan for the 180-bed facility. The more than 60,000-square-foot rehab and skilled nursing center accommodates 82 semi-private units and 16 private units and is located on a 13.5 acre campus.

Advanced Rehabilitation and Healthcare of Bowie was designed to provide more space for advanced resident treatments, including an expanding therapy department that offers speech, occupational, and physical therapy as well as rooms for short-term visitors. 

Beech Street Capital Closes $10.2 Million for W.V. Senior Care Center

Beech Street Capital, LLC recently announced it had provided a $10.2 million loan to refinance a West Virginia senior care facility in a transaction originated by executive vice president Joshua Rosen out of the firm’s Chicago Office.

The financing was done using HUD’s Section 232/223(f) loan program. The borrowers had purchased Worthington Nursing & Rehabilitation Center, a 105-bed skilled nursing facility in Parkersburg, W.V., six months prior to refinancing.

Healthsense Closes $7 Million in Financing from Tech Investors

Healthsense Inc., a remote monitoring solutions provider for the senior care market, announced last Tuesday that it had raised an additional $7 million in a round of Series-D financing led by new investors Merck Global Health Innovation Fund, LLC and Fallon Community Health Plan and joined by existing Healthsense investors.

The financing will support the senior care technology solutions provider as it continues to expand the reach of its remote monitoring platform throughout senior living communities and homes across the nation. The company’s eNeighbor passive monitoring and analytics technology enables caregivers to detect emerging health concerns before they turn into emergencies.

Using Healthsense technology, care providers can also receive automatic alerts for emergent situations like falls, minimizing the potential harmfulness of such events. 

Integrating these solutions into homes, including residences in senior living communities, can help meet the monitoring and oversight needs of individuals throughout the continuum of care and help them stay independent and healthy for as long as possible.

“The addition of respected investors and industry leaders like Merck GHIF and Fallon Community Health Plan supports our belief that our technology and approach can both improve quality and reduce cost. Both companies represent strong strategic alliances for us at this important point in our growth,” said Brian Bischoff, CEO of Healthsense. “As we go forward, our attention will increasingly focus on enhancing care models to advance the adoption of remote monitoring in health management.”

KeyBank Provides $55 Million for CNL’s Senior Housing Portfolio Acquisition

KeyBank Real Estate Capital announced it provided a $55.19 million, 10-year fixed-rate term loan to CNL Healthcare Trust through Fannie Mae to complete a KeyBank Bridge to Agency transaction to refinance a bridge loan for the investor’s acquisition of five properties in February 2012. 

Vice President Monique Bimler, from KeyBank’s Healthcare Agency Lending Group, arranged the loan, which is secured by the five-property, 394-unit portfolio. The properties are Primrose Retirement Communities in Grand Island, Neb., Marion, Ohio, Mansfield, Ohio, and Casper, Wyo., and Sweetwater Retirement Community in Billings, Mont. 

Ziegler Closes $71 Million Financing for Calif. Senior Community

Speciality investment bank Ziegler recently announced the closing of a $71,035,000 fixed-rate, Series 2012 Bond issue for The Terraces at San Joaquin Gardens.

The Terraces at San Joaquin Garden (TSJG) corporation was formed for the purpose of redevelopment, expansion, ownership, and operation of an existing senior living community, also called The Terraces at San Joaquin Garden, located in Fresno, Calif. The community is currently comprised of 176 residential living apartments, 42 assisted living apartments, 22 memory support assisted living apartments, and 84 skilled nursing beds.

Prior to this bond issuance, TSJG (the community) was a member of the American Baptist Homes of the West (ABHOW) Obligated Group, a California-based nonprofit public benefit corporation and an affiliate of the TSJG corporation. Concurrently with the bond issuance, ABHOW, the current owner and operator of TSJG, will transfer ownership to the TSJG corporation. ABHOW will continue to serve as the community’s manager.

ABHOW recognized the need for revitalization of TSJG, says Ziegler, and in 2005 approved a multi-phase redevelopment to modernize the campus. Upon completion, the redeveloped community will have 262 residential living apartments, 62 assisted living apartments, 24 memory support assisted living apartments, and 54 skilled nursing beds. At that point, 76% of all residential living apartments will be new or fully renovated, while 100% of the assisted living, memory support, and nursing levels of care will be new or fully renovated.

The proceeds of the Series 2012 Bonds will be used to pay certain costs of the project, fund debt service reserve funds for each series, pay a portion of the interest on the Series 2012 Bonds during construction and the first six months of operation of the project, and pay certain costs relating to the issuance of the bonds.

“ABHOW’s financial objectives were to minimize the amount and cost of debt for TSJG, while  protecting the core credit’s rating and preserving future borrowing capacity for other redevelopments in process within the obligated group,” said Mary Munoz, managing director in Ziegler’s Senior Living practice. “These objectives were met through creative ‘recycling’ of entrance fees multiple times in the phasing process; funding a portion of the project with subordinated loans from ABHOW; and seizing the current low interest rate environment to spin the community out of the obligated group.”

Cambridge Originates $7.3 Million Loan for Ill. Senior Apartment Complex

Cambridge Realty Capital Companies recently closed a $7.3 million refinancing loan for Wolford Apartments, a senior apartment complex in Danville, Ill.

The fully-amortized, FHA-insured loan was secured through HUD’s Section 232/223(a)(7) refinancing program and has a 40-year term.

The loan was underwritten by Cambridge Realty Capital  Ltd. of Illinois, the firm’s business that specializes in HUD funding programs.

Dougherty Mortgage Closes $21.35 Million Loan for Minn. ALF

Dougherty Mortgage recently closed a $21.35 million loan to refinance The Colony at Eden Prairie, a 164-unit assisted living community in the Twin Cities.

The 40-year loan was arranged for SE Rolling Hills LLC, the property’s owner, using HUD’s Section 232 refinancing program to secure a lower interest rate on the new loan. 

Health Care REIT Completes $1.7 Billion Stock Sale

Health Care REIT (NYSE:HCN) announced on Monday it had completed a public offering of shares of common stock that raised approximately $1.7 billion after selling 29.9 million shares for $56 a share.