Senior Housing Finance Activity: Cambridge, The Carlyle Group, Ziegler

Cambridge Closes $42.8 Million of Senior Housing & Care Loans

Cambridge Closes $14.9 Million Nursing Home Loan

Cambridge Realty Capital Companies recently announced the closing on a $14.9 million loan to refinance Green Park, a 188-bed skilled nursing home in St. Louis, Mo., announced chairman Jeffrey Davis. 

The fully-amortized, 36-year term loan was arranged for the owner, an Ohio limited liability company, using the HUD Section 232/223(a)(7) funding program and was underwritten by Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-insured HUd loans. 

Cambridge Closes $12.6 Million Loan for Ill. Senior Care Property

Cambridge Realty Capital Companies recently reported closing a $12.6 million first mortgage loan for Hawthorne Inn of Danville, a 140-bed skilled nursing care and assisted living property in Danville, Ill.

The fully-amortized, 30-year term mortgage loan was arranged using the HUD Section 232/223(a)(7) refinance program and was underwritten by Cambridge Realty Capital Ltd. 

The property has 76 skilled care beds and 65 assisted living units, according to Cambridge chairman Jeff Davis. 

Cambridge Closes $3.9 Million Loan for Texas Senior Care Center

Cambridge reported closing a $3.9 million first mortgage loan for Windsor Care Center, a 108-bed skilled nursing home in Terrell, Texas.

The fully-amortized, 35-year term mortgage was arranged for the owner using the HUD Section 232/223(a)(7) refinance program and was underwritten by Cambridge Realty Capital Ltd. of Illinois with an undisclosed interest rate. 

Cambridge Closes $2.4 Million Loan for Wisc. SNF

Cambridge recently reported closing on a $2.4 million loan to refinance Alden Meadow Park, a 94-bed skilled nursing home in Clinton, Wisc. The fully-amortized, 30-year term loan was arranged using the HUD Section 232/223(a)(7) funding program and was underwritten by Cambridge Realty Capital Ltd. of Illinois. 

Cambridge Closes $9 Million of Loans for Two Indiana Nursing Homes

Cambridge Realty Capital Companies reports arranging $9 million worth of loans to refinance two skilled nursing home properties in southern Indiana.

The fully-amortized, 24-year term loans were arranged for the owner, Transcendent Healthcare, for properties in Boonville and Owensville, Ind. One loan, for $4.68 million, was used to refinance the 88-bed Transcendent Healthcare of Boonville property. A $4.32 million loan was arranged to refinance the 68-bed Transcendent Healthcare of Owensville.

Both loans were arranged using the HUD Section 232/223(a)(7) funding program and were underwritten by Cambridge Realty Capital Ltd. of Illinois.

Lancaster Pollard Closes $11.4 Million Refinance for Ohio SNFs

Lancaster Pollard recently assisted Hennis Care Centre with the refinancing of two of their skilled nursing facilities: Hennis Care Centre of Bolivar, a 99-bed SNF, and Hennis Care Centre of Dover, a 137-bed SNF with 10 assisted living units, both located in Northeast Ohio.

The facilities were refinanced using the FHA-insured HUD Sec. 232/223(a)(7) program. The total loan amount of $11.4 million will allow Hennis Care Centre to achieve significant debt service savings. Kass Matt, out of Lancaster Pollard’s headquarters in Columbus, Ohio, led the transaction.

Ziegler Closes $21.6 Million Financing for Kendal at Oberlin

Ziegler recently announced the closing of the $21.6 million tax-exempt, fixed-rate Kendal at Oberlin Series 2013A Bond issue. Kendal at Oberlin is an obligated group which owns and operates a continuing care retirement community in Oberlin, Ohio.

The borrower is a subsidiary of Kendal Northern Ohio, which is affiliated with The Kendal Corporation.

Proceeds from the sale of the Series 2013A Bonds together with available funds will be used to refund and retire the outstanding County of Lorain, Ohio Health Care Facilities Revenue Refunding Bonds, Series 1998 A and a loan from Lorain National Bank to the borrower in the principal amount of $2.38 million. 

The proceeds will also be used to pay or reimburse the borrower for the payment of certain costs of acquiring, constructing, installing, and equipping the project, and to fund a portion of the debt service reserve fund for the benefit of the Series 2013A Bonds, along with paying certain expenses associated with the cost of issuing the bonds. 

The Series 2013B bonds will consist of a bank direct placement by Lorain National Bank to fund future capital expenditures over the next three years. The bank has a 13-year commitment through the final maturity of the Series 2013B bonds, and Kendal at Oberlin will also amend the existing Series 2009A&B bank qualified bonds to match the bank’s commitment to the final maturity of the bonds and to lower the fixed interest rate. 

Cambridge Provides $21.7 Million Loan for Senior Apartment Complex

Cambridge Realty Capital Companies recently provided a $21.7 million loan to refinance Morningside North Apartments, a 256-unit senior apartment complex in Chicago. 

The fully-amortized, 33-year term loan was arranged using the HUD 232/223(f) funding program and was underwritten by Cambridge Realty Capital Ltd. of Illinois, according to Cambridge chairman Jeffrey Davis. 

Love Funding Closes $22.7 Million in Financing for Mass. SNF Portfolio

Love Funding recently announced the closing of three loan refinancings totaling $22.7 million for a portfolio of skilled nursing facilities in Massachusetts.

Leonard Lucas, a senior director out of Love Funding’s Boston office, secured the loans through the HUD Section 232/223(f) LEAN loan program for long-term care facilities. 

The facilities benefiting from the refinancing are Royal Cape Cod Nursing and Rehabilitation Center in Buzzards Bay, Royal Falmouth Nursing and Rehabilitation Center in Falmouth, and Royal Taber Street Nursing and Rehabilitation Center in New Bedford. The centers offer a total of 270 beds and are operated by Royal Health Group, a family-owned company founded by James Mamary Sr. in 1997.

Lucas also secured an $8.7 million loan refinancing for Country Villa Rehabilitation Center, a Los Angeles skilled nursing facility, last month. 

Love Funding Secures $4.34 Million in Financing for Maine Senior Care Portfolio 

Love Funding recently closed three loan refinancings totaling $4.34 million for a portfolio of senior care properties in Maine. 

Leonard Lucas, a senior director out of Love Funding’s Boston office, secured the loans through the HUD 232/223(a)(7) LEAN loan program. 

The refinanced facilities are Klearview Manor in Fairfield; Northland Living Center in Jackman, and Sanfield Rehabilitation and Living Center in Hartland. The centers offer a total of 64 beds and are operated by North Country Associates Inc.

Freddie Mac Approves Greystone as Designated Seniors Housing Seller/Servicer

Greystone announced on Tuesday that it has been approved as a National Senior Housing Seller/Servicer by Freddie Mac to originate and service multifamily seniors housing loans nationwide.

The designation allows Greystone to better meet the financing needs of the rapidly growing senior sector, according to the company. To be considered for the designation, lenders are evaluated by Freddie Mac based on a number of qualifications, including GSE loan origination and underwriting experience for seniors housing properties, staff experience in the seniors housing market, and track record of seniors housing loan performance. 

“Freddie Mac’s capabilities and specialized team of Seniors Housing experts have already added value to one of our long term clients and we are excited to bring Freddie Mac to all our clients going forward,” said Scott Kavel, Managing Director for Greystone’s senior housing lending business.

Lancaster Pollard Closes Loans for Two Midwest Senior Care Properties

Lancaster Pollard recently reported completing a $6.9 million refinancing of a 92-unit assisted living, independent living, and memory care property in Bridgman, Mich. using the HUD Section 232/223(f) program.

The provider was able to refinance its existing term note and line of credit, which provided significant debt service savings and funded a large deposit to replacement reserves for ongoing capital needs, including $25,705 in repairs to the facility. The family-owned organization was able to remove personal guarantees under the new financing structure, freeing up borrowing capacity to fund future growth.

Brendan Healy, a vice president out of Lancaster Pollard’s Columbus office, led the transaction.

Lancaster Pollard also recently worked with The Birches Assisted Living, a 90-unit licensed assisted living facility in Clarendon Hills, Ill., to refinance the facility’s existing FHA loan. The firm closed financing for the provider through the HUD Section 232/223(a)(7)  program to obtain a reduced interest rate and help realize nearly $60,000 of annual debt service savings, totaling more than $1.8 million for the remaining life of the loan.

Steve Kennedy, senior vice president and regional manager with Lancaster Pollard out of the firm’s Columbus office, led the transaction. 

ELS Initiates $435 Million Refinancing

Equity LifeStyle Properties, Inc. (NYSE:ELS) announced on June 3 its plans to obtain $435 million in new mortgage loans from institutional lenders, secured by mortgages on 25 manufactured home and RV properties. The loans are expected to bear a blended interest rate of 4.3% per annum, and to have maturities ranging from 10 to 25 years with a weighted average maturity of about 18 years.

Proceeds from the financing will be used to repay debt with a weighted aerate effective interest rate of 5.7%. This includes ELS’ remaining 2013 debt maturities as well as approximately $102 million maturing in 2014 and about $295 million maturing in 2015. ELS elects to use available cash to pay approximately $37 million in prepayment penalties.

The financing is expected to close in stages beginning in the second quarter of 2013 with the final closing expected to occur in April 2014.

“The current financing environment offers an opportunity to obtain long-term financing for our RV and MH assets at historically low interest rates. This transaction allows us to reduce our overall cost of debt approximately 20bps to 5.3% and extend our weighted average maturities from 4.5 years to more than 7 years,” said Marguerite Nader, CEO of ELS. “In addition, through this transaction we expect to restructure our debt maturities so that we have no more than $300 million maturing in any single year going forward.”

Ziegler Closes $24.8 Million Financing for Plymouth Place

Ziegler announced on Thursday the closing of the $24,765,000 tax-exempt, fixed-rate Plymouth Place Series 2013 bond issue. Plymouth Place is located in LaGrange Park, about 15 miles outside of downtown Chicago, Ill., and is managed by Providence Management. 

Proceeds from the sale of the Series 2013 Bonds, together with other funds, will be used to refinance the outstanding Series 2005B and Series 2005C Bonds, all of which were variable rate demand bonds with credit enhancement through letters of credit. The Series 2013 Bonds consist of one fixed-rate, tax-exempt term bond. Principle on the 2013 bonds will be amortized during 2038-2043, after the final maturity of Plymouth Place’s only other debt, the fixed-rate Series 2005A bonds. 

Love Funding Closes $4.74 Million Loan for Okla. Assisted Living Community

Love Funding recently announced the closing of a $4.74 million loan refinancing for Heritage Assisted Living, a 79-unit assisted living center in Yukon, Okla.

Love Funding Senior Director Robyn Cunningham of the St. Louis office, together with Director Adrian Hartman, secured the financing through the Department of Housing and Urban Development’s Section 232/223(f) LEAN loan insurance program.

Heritage Assisted Living was built in 2000, and joined Oklahoma’s Advantage Waiver Program in 2010. The property was the first assisted living center in the Oklahoma City area to join the state’s long-term care program, which provides Medicaid-funded home and community-based services to frail elders and adults with disabilities.

Eskaton Properties Issued $51.9 Million Tax-Exempt Fixed-Rate Bonds

Cain Brothers recently served as sole underwriter and swap advisor in the issuance of the Eskaton Properties, Inc. Series 2013 Bonds, issued as unenhanced fixed rate bonds rated “BBB” by S&P on the underlying credit strength of Eskaton.

The bonds were used to refinance EPI’s Series 2008B Variable Rate Demand Bonds, backed by a U.S. Bank Letter of Credit; fund the termination payment for an interest rate swap related to the Series 2008B bonds; pay for the cost of issuance; and fund a debt service reserve fund.

Through the bond financing, Eskaton has a more stable capital structure by mitigating common risks associated with Letter of Credit-backed variable rate demand bonds. The corporation also reduced its bank exposure by $43.6 million, or 36% of its outstanding debt. The concurrent termination of Eskaton’s interest rate swap that hedged the 2008B bonds eliminated the counterpart and basis risks, while removing a $9.6 million swap liability from its balance sheet.

The Series 2013 bonds mature in 2035 and were issued in the amount of $51,875,000 at an average yield of 3.96%. 

Oak Grove Capital Closes $1.8 Million Loan for Senior Apartments

Oak Grove Capital recently reports closing a $1.8 million Fannie Mae loan for Fair Oaks Estates, a senior housing complex in Carmichael, Calif. The community offers assisted living, memory care, hospice, and respite care and has above 95% occupancy, according to its website.

Skilled Healthcare Group Receives HUD Loan Commitments

Skilled Heatlhcare Group, Inc. (NYSE:SKH) announced Thursday it has received its first commitments by the Department of Housing and Urban Development to insure loans secured by nine skilled nursing facilities, up to an aggregate amount of $79.8 million.

 “This is a key step in our efforts to secure long-term low cost financing through participation in the HUD program,” said Boyd Hendrickson, Chairman and CEO of Skilled Healthcare Group.  “We anticipate that these loans will fund within approximately six weeks.”

SKH plans to use the net proceeds to reduce the term debt portion of its senior secured credit facility. The loans are fully-amortizing over 30-35 years with a projected fixed-rate cost of about 4.6%.

“We have concurrently sought additional HUD loan commitments to approximately match the aggregate $250 million level allowable under our credit agreement, and will evaluate further HUD opportunities under the $460 million portfolio capacity at that time,” Hendrickson said.

The Carlyle Group Seeks $4 Billion Fund Raise

The Carlyle Group, a private equity firm with ties to Capitol Seniors Housing, is looking to launch a U.S. real estate fund and raise up to $4 billion, according to the Wall Street Journal.

“We believed in the inherent value of the investments we were making despite the noise in the market,” Robert Stuckey, head of Carlyle’s U.S. real estate group, told the WSJ without specifically discussing the new fund raise. 

Carlyle has about $176 billion in assets under management.