Senior Housing Finance Activity: Walker & Dunlop, Lancaster Pollard, HCP

Walker & Dunlop Closes $28.5 Million Loan for Hawaii Senior Housing Community

Walker & Dunlop, LLC recently provided $28.5 million in Fannie Mae financing for The Plaza at Mililani, a senior housing community in Mililani, Hawaii. 

The loan was to refinance the 72-unit, 128-bed property  and was structured with a 10-year term and a 30-year amortization. It was underwritten to a 67% loan-to-value with a 1.40x debt-service coverage ratio.

Advertisement

The Plaza at Mililani was 96% leased at closing. Russell Dey, a loan officer at Walker & Dunlop, led the team on the financing transaction. 

HJ Sims Refinances Fla. CCRC

HJ Sims recently closed a refinance for Cypress Cove at HealthPark Florida, Inc., a continuing care retirement community in HealthPark, Fla.

Advertisement

The financing firm provided initial construction financing for Cypress Cove in 1997 along with expansion financing for the community in 2002. 

Cypress Cove had been scheduled to remarket $6.5 million in adjustable rate bonds in 2008, but was unsuccessful due to the economic downturn and little liquidity in the market. 

Sims worked with the CCRC to install a new capital structure consisting of 100% fixed rate bonds, eliminating remarketing and interest risk associated with existing adjustable rate bonds.

This allowed the financing team to establish new bond documents with much more flexible covenants, and the financing plan also included more than $4 million to fund capital improvements throughout the campus. Positive movement in the market also led to Cypress Cove being able to add an additional $2 million to their capital improvement budget for a total of $6 million. 

The Series 2012 financing allows the CCRC to save $1.4 million in annual debt services through 2026—equivalent to a 24% reduction in annual debt service. Also, because the issue was more than two times over-subscribed, Sims was able to price the 35-year bond at a yield of 5.75%. Even after funding more than $6 million in capital improvements, Cypress Cove generated more than $1.8 million in net present value savings as a result of the refinancing. 

Cambridge Closes $9.1 Million Loan for Calif. Senior Care Facility

Cambridge Realty Capital Companies closed a $9.1 million FHA-insured HUD Lean loan to refinance The Rehabilitation Centre of Beverly Hills, a 150-bed skilled nursing facility in Los Angeles, Calif.

The fully-amortized, 32-yeaer term loan was arranged using HUD’s Section 232/223(f) funding program. Hymie Barber, the National Originations Manager for Cambridge and Managing Director of Catalyst/Cambridge Health Care Finance in Los Angeles, coordinated the loan, which was underwritten by Cambridge Realty Capital Ltd. of Illinois. 

TD Bank Provides $75.8 Million in Financing for Senior Care Provider

The Healthcare Banking Group at TD Bank recently provided $75.8 million in financing to senior care provider MorseLife, reports the South Florida Business Journal.

TD Bank issued tax-exempt bonds through the Palm Beach Health Facilities Authority. MorseLife, based in West Palm Beach, used the financing to retire debt and support new construction, renovation, and expansion of its exsting facilities. 

MorseLife will use $30 million of the proceeds to help fund the construction of a 120-bed rehabilitative care skilled nursing complex.

Lancaster Pollard Closes $6.3 Million Loan for N.C. Assisted Living Facility

Lancaster Pollard recently obtained a $6.3 million non-recouse loan to refinance Cambridge Hills, a 90-bed assisted living community in Pittsboro, N.C. The financing firm was able to eliminate the community’s need for a debt service reserve fund by demonstrating its strong performance and positive cash flow trajectory.

Lancaster Pollard closed the refinancing using the HUD Section 232/223(f) program, lowering Cambridge Hills’ interest rate by half and resulting in $200,000 of annual savings. John Randolph, out of the firm’s Atlanta, Ga. office, led the transaction.

HCP to Sell 22 Million Shares to Raise Money for Portfolio Acquisition

HCP (NYSE:HCP) is selling 22 million shares of its common stock to Goldman, Sachs & Co., as sole underwriter, in an underwritten public offering.

The REIT intends to use the net proceeds of the offering to finance a portion of the purchase price for the acquisition of 133 senior housing communities from a joint venture between Emeritus Corporation and Blackstone Real Estate Partners VI, an affiliate of The Blackstone Group. HCP has granted to the underwriter an option for thirty days to purchase up to an additional 3.3 million shares of common stock.

Companies featured in this article:

, , , , ,