Spectrum Retirement Communities announced this week a $124 million financing agreement with Bank of the West, with which it will refinance existing properties and buy out some of its equity partners.
Spectrum, which develops, owns and operates independent living, assisted living and memory care communities across about a dozen states, says the Bank of the West loan will allow it to refinance some of its existing debt as well as buy out an equity partner on a portfolio of six properties in Kansas, Missouri, Illinois and Arizona.
“Spectrum has a very positive outlook on its growth, as well as that of the seniors housing industry,” says Jim Parker, Senior Vice President of Development and Capital Markets for Spectrum. “There has been very little construction in the last few years due to recessionary pressures, and we feel fortunate to have great investors and great lender partners who make it possible for us to develop quality communities.”
The company will use the financing to buy out equity partner Kimco Realty on the six-property portfolio that includes 722 units spanning 265 independent living, 115 memory care and 342 assisted living. They are located in Overland Park, Kansas; Cary, Illinois; Peoria, Arizona; Shawnee, Kansas; and Affton, Missouri.
The bank indicated its interest in investing in the senior living provider with an eye toward growth.
“We are very pleased to help Spectrum Retirement Communities continue to grow and serve seniors,” said Astrid Kramarz of Bank of the West Real Estate Industries Division’s Healthcare Unit. “Spectrum Retirement is a long-term client, and we are proud to be a key contributor to their financial strategy.”
Spectrum currently has more than 3,400 units under management with plans to expand that reach on an annual basis.
“We intend to continue our growth over the next several years with 4-6 new properties each year,” Parker says. “We are passionate about the business we are in and the people we serve.”
Bank of the West acted as administrative agent and lead arranger for the syndicated loan, with other participating lenders including Compass Bank, Colorado Business Bank, and Raymond James Bank, N.A.
Written by Elizabeth Ecker