Senior Housing Finance Activity: Cushman & Wakefield, Lancaster Pollard, Independa

Cushman & Wakefield Arrange $12 Million Acquisition Financing for LCB

Cushman and Wakefield’s Senior Housing Capital Markets Group has arranged $12.3 million of capital for LCB Senior Living’s acquisition of a memory care community in Lincoln, Rhode Island. The acquisition financing was provided by Wells Fargo Bank, with joint venture equity provided by Prudential Real Estate Investors.

The property is a 60-unit Alzheimer’s community built in 2009. The acquisition closed in late September, with LCB taking over ownership and management. It has been renamed to The Lighthouse at Lincoln.  

Richard Swartz, executive managing director at Cushman and Wakefield, led the team in this transaction along with managing director Jay Wagner, director Aaron Rosenzweig, and associate Stuart Kim. 

Lancaster Pollard Closes Nearly $63 Million in Refinancings

Lancaster Pollard recently refinanced nine nonprofit and for-profit skilled and assisted living facilities for nearly $63 million. The transactions were located in Pennsylvania, Illinois, Missouri and Ohio.

$30.8 Million Refinancing for Three Senior Care Facilities

Lancaster Pollard assisted Wilmac Corporation with the refinance of three skilled nursing and assisted living facilities—Attleboro Nursing & Rehabilitation Center, the Brunswick at Attleboro and the Brunswick at Longstown. 

Lancaster Pollard refinanced a total of $30.8 million using the FHA Sec. 232/223(f) mortgage insurance program for the three facilities. The refinance has helped stabilize cash flow and will allow Wilmac to improve the facilities and invest in human capital. Ken Gould, senior vice president and regional manager of the firm’s Philadelphia office, guided the transaction for Lancaster Pollard. 

$12.4 Million Refinancing of Two Ill. Assisted Living Facilities 

Steve Kennedy, senior vice president and regional manager, who is based out of the firm’s headquarters in Columbus, Ohio, led Lancaster Pollard’s refinancing of two of Heritage Enterprises’ assisted living facilities: Evergreen Place, with 60 units; and Evergreen Village Supportive Living, with 99 beds.

The properties, located in Normal, Ill., are operated by Heritage and owned by joint ventures involving Heritage and two other organizations. Heritage was seeking long-term, nonrecourse financing and faced a balloon payment in 2015. Although it had not previously used HUD/FHA financing, Lancaster Pollard recommended that Heritage use the FHA Sec. 232/223(f) program. The firm orchestrated the closing of two loans with a combined amount of $12.4 million. The transactions refinanced the long-term debt of the facilities into a low interest rate, fully amortizing, nonrecourse, FHA-insured mortgage loan. In addition, refinance risk was eliminated, minor repairs and improvements were financed and a replacement reserve was fully funded for future repairs.

$6.6 Million Refinancing of St. Louis SNF

In another transaction led by Kennedy, Lancaster Pollard refinanced Hillside Manor, a 204-bed skilled nursing facility located in St. Louis, Mo., for $6.6 million using a FHA-insured mortgage loan via the HUD Sec. 232/223(f) program. Lancaster Pollard’s underwriting and structuring of the loan for the property’s manager, SW Management of Chicago, included the funding of capital repairs and improvements as well as helping to allay HUD’s concerns regarding the age of the property. As a result, SW Management obtained a nonrecourse, fixed-rate, fully amortizing long-term loan at slightly over 3%. Loan proceeds funded a significant deposit to replacement reserves, $1.3 million in repairs and paid off existing bank financing.

$4.4 Million Refinancing of Missouri Senior Care Center

In Missouri, Lancaster Pollard aided Eldercare Management Services to refinance an assumed FHA-insured loan for $4.4 million on the recently purchased Adams Street Care Center, a 62-bed skilled nursing facility in Jefferson City. Using the HUD Sec. 232/223(f) program, Lancaster Pollard refinanced the existing HUD loan along with secondary indebtedness that was used for the acquisition and was able to obtain just over a 3% interest rate. The refinancing was managed by Mike Ashley, a vice president with Lancaster Pollard, who is located in the firm’s Lawrence, Kan. office.

$4.1 Million Refinancing of Ohio Health Center

Kass Matt, senior vice president and regional manager, who is based out of the firm’s headquarters in Columbus, Ohio, guided O’Neill Management to refinance an existing HUD-insured loan on Bradley Bay Health Center in Bay Village, Ohio. The facility consists of 138 licensed skilled nursing beds and 33 licensed assisted living units. Lancaster Pollard recommended using the HUD Sec. 232/223(a)(7) program to reduce the existing loan’s interest rate. The $4.1 million refinancing yielded nearly $25,000 in annual debt service savings for the remaining life of the loan. Additionally, O’Neill Management used loan proceeds to make $85,000 in repairs and improvements to the facility.

$4.6 Million Bond Refinancing for Lutheran Social Services of Central Ohio

Separately, Matt also led the refinancing of tax-exempt bonds for Lutheran Social Services of Central Ohio, a faith-based, nonprofit organization based in Worthington, Ohio, on its 130-bed skilled nursing facility, Good Shepherd Rehabilitation and Healthcare Campus, in Ashland, Ohio. Using the HUD Sec. 232/223(f) program, Lancaster Pollard obtained 30-year, nonrecourse debt at an interest rate of over 3% on the $4.6 million loan for the organization. In addition, Good Shepherd was able to do more than $700,000 in repairs and improvements to the facility and deposit more than $1.2 million into its replacement reserve account to fund future upkeep.

GE Capital Commits More than $1.4 Billion to Senior Housing & Care

GE Capital, Healthcare Financial Services has committed more than $1.4 billion in financing for healthcare facilities year-to-date, the firm announced in October. This is an increase in volume over the same period in 2012, and reflects growing confidence and improving fundamentals within the industry. Financing was provided through 47 transactions across senior housing, skilled nursing and medical properties, and was used to support mergers and acquisitions, and portfolio and asset refinancings.

Housing & Healthcare Finance Provides $5 Million Loan for AdCare SNF

Housing & Healthcare Finance, LLC recently announced the funding of a $5 million bridge-to-HUD loan to refinance the existing debt of a 118-bed skilled nursing facility owned by AdCare Health Systems, Inc. (NYSE MKT:ADK).

“We appreciate our growing relationship with HHC Finance,” said Boyd Gentry, CEO and president of AdCAre. “Their timely bridge-to-HUD program was a perfect financing solution for this situation.” 

Independa Closes $2.25 Million Series B Funding Round

Independa, Inc. announced recently that it has secured its initial close of $1.85 million of its $2.25 million Series B Financing round, in order to continue with the market growth of its integrated CloudCare solutions. The latest round was led by City Hill Ventures, a San Diego-based life sciences and healthcare venture capital firm. 

“As demonstrated by its remarkable growth and innovation, Independa clearly leads the market in the development and delivery of its remote care platform,” said Jonathan Lim, M.D., Managing Partner and Founder of City Hill Ventures, in a statement. “City Hill’s investment enables Independa to capitalize on the global demand for its solutions, and accelerate the company’s pace of innovation.” 

Independa will use the additional financing to continue expanding its reach on both a national and global basis, accelerate product growth and innovation, invest in additional sales and marketing resources, and continue engaging with strategic partnership opportunities.

“This capital gives us additional resources to expand quickly and strategically into new markets, continue with our unique and award winning innovations, and meet the rapidly growing demand for our integrated and cost-effective approach to delivering remote care solutions and benefits,” said Kian Saneii, CEO of Independa.

Ziegler Closes $6.7 Million Financing for Two Senior Communities

Ziegler Financing Corporation recently announced the closing of the $6,728,100 refinancing of two Section 202 affordable housing properties, Lincoln Villas North and Trinity Terrace, both owned and managed by Lincoln Lutheran of Racine (LLOR).

Both properties—one a 74-unit apartment complex and the other with 39 units—are located in Racine, Wisc. Ziegler used the HUD Section 202 refinancing policy to refinance both Section 202 direct loans with a collective balance of $3.16 million and refinancing existing deferred management fees and other unfunded operating expenses.

The refinancing proceeds will also be used to capitalize a planned repair program at Lincoln Villas North and to generate significant cash-out proceeds to complete repairs at Trinity Terrace and fund other expenses, along with provide for a developer’s fee and lower the annual debt service costs. 

Lutheran Homes of South Carolina Issues $35 of Bonds

Lutheran Homes of South Carolina Inc., working with the South Carolina Jobs-Economic Development Authority, will issue $35.45 million in health facilities revenue bonds to be used to build a new facility and refinance existing projects.

The Irmo-based organization operates four CCRCs along with Lutheran Hospice and BeWell Home Services. 

Projects funded by the Series 2013 bonds include the $14 million construction of a 44-bed skilled nursing and rehabilitation center for the Rice Estate CCRC and $1 million in renovations at the Heritage at Lowman. The bonds also were used to refinance several buildings throughout the organization’s CCRC portfolio.