Senior Housing Finance Activity: Prudential, Berkeley Point, Johnson Capital

Contemporary Healthcare Capital Provides Acquisition Financing

Contemporary Healthcare Capital, LLC has provided a $6,850,000 senior mortgage loan, a $1,250,000 mezzanine loan, and a $800,000 preferred equity loan to finance the acquisition of a 120 bed licensed assisted living and memory care facility located in Sumter, S.C.

The funds will also be used for the renovation of the facility, working capital and closing costs.


Johnson Capital Arranges $5M Loan for Senior Care Center

Johnson Capital has arranged a $5 millii loan to refinance Copper Ridge Health and Rehabilitation Center, a 101-bed skilled nursing facility in Butte, Montana.

The 35-year fully amortizing loan was arranged using the HUD Section 232/223(f) LEAN program and carries a low interest rate. Brett Patric, managing director of Johnson Capital’s FHA Division, led the transaction.


Grandbridge Finances $28M Senior Housing Development in Minn.

Grandbridge Real Estate Capital recently closed a $27,820,000 first mortgage construction/permanent loan secured by The Waters on Mayowood, a senior living community anticipated to open in late 2014 in Rochester, Minn.

The development loan, originated by Minneapolis-based Tony Carlson, was funded through one of Grandbridge’s banking relationships and featured a construction term, interest only component, permanent term, and closed with a very low interest rate.

Located near the world-renowned Mayo Clinic and adjacent to the Apache Mall, the 175-unit community is being developed by a local Rochester developer and will be operated and managed by The Waters Senior Living, an owner and operator of senior living communities in the Twin Cities.

Cain Brothers Advises Issuance of $50M PRS Refinancing

Cain Brothers served as investment banking advisor in connection with the issuance of $50 million Revenue Refunding Bonds, Series 2013B for Rogue Valley Manor, a Pacific Retirement Community-managed CCRC located in Medford, Oregon.

The financing strategy consisted of a direct purchase with a commercial banking entity to refinance RVM’s Series 2007 variable rate demand bonds supported by a direct-pay letter of credit and reimburse RVM for a portion of prior capital expenditures. PRS worked with the purchaser in securing a 10-year capital commitment.

While the Series 2013B Bonds do not carry a rating, a public rating on RVM’s operations was solicited from Fitch Ratings. Cain Brothers assisted RVM throughout the rating review process, and Fitch affirmed the existing rating of “A-” with a Stable Outlook. The 10-year commitment resulted in a low cost of capital based on interest rates as of the date of transaction closing, exclusive of RVM’s corresponding interest rate swap.

Berkeley Point Capital Closes $6.1M Senior Care Refinancing 

Berkeley Point recently closed the refinancing of Willow Springs Alzheimer’s Special Care Center, a 30-unit, 56-bed community in Redding, Calif. The cash-out refinancing was arranged through the Fannie Mae DUS program and structured as a fixed-rate loan with a 10-year term.

Willow Springs opened in 2003 and is the only standalone memory care community in the local market. The borrower is Churn Creek LP, led by Jerry Erwin, who has developed, owned, and managed nursing homes and other senior living care centers for more than 40 years. JEA Senior Living, Inc., founded by Erwin, operates Willow Springs.

Prudential Mortgage Capital Provides $64M Loan for Spectrum Retirement

Prudential Mortgage Capital Company recently announced providing a $64.2 million loan to refinance two Spectrum Retirement Communities properties in Colorado.

Both senior housing properties were built in 2009 and are located in Lakewood and Parker. The Lakewood property is an independent living community, while the Parker property specializes in independent living, assisted living, and memory care.

The loan term is seven years and was originated and underwritten by Prudential Mortgage Capital’s senior housing team. Casey Moore, a principal at Prudential Mortgage, and Trace Wilson, an associate, led the transaction.

Beech Street Capital Closes $8 Million Loan for Conn. SNF

Beech Street Capital announced recently it has provided a $7.9 million loan to refinance Laurel Woods Health Care Center, a 120-bed skilled nursing facility in East Haven, Conn.

The borrower had 21 years left on an existing $9 million FHA loan, and Beech Street was able to secure an increase in the loan term to 33 years, which produced a decrease in annual payments of more than $270,000 with a significant reduction in interest. HUD’s Section 232/223(a)(7) program was used for the transaction.

The transaction was led by Josh Rosen, executive vice president of Beech Street Capital out of the firm’s Chicago office.

Ziegler Closes $30M Financing for Calif. Senior Living Community

Ziegler recently announced the closing of a $29.97 million tax-exempt, Cal-Mortgage insured fixed-rate Series 2013 Bonds for The Redwoods, a Community of Seniors.

The Redwoods operates a retirement community that offers independent living, assisted living, and skilled nursing in Mill Valley, Calif. and has a key mission of providing affordable housing.

The community began planning for a revitalization project in 2006 to respond to the challenges of an aging physical plant and  expand affordable housing options for the area’s growing senior population. The revitalization plan focuses on updating the 40-year old community’s infrastructure, including renovating apartments and adding a wellness center, café, and a new entrance.

The Series 2013 Bonds are being issued to currently refund the Series 1997 Bonds, with $2,965,000 outstanding; establish a debt service reserve fund; fund a small portion of interest; and pay costs of issuance for the Series 2013 Bonds and the refunding of the prior bonds.

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