Senior Housing Finance Activity: CBRE, Beech Street, Ziegler

Ziegler Closes $44M Financing for Greencroft CCRC

Ziegler recently announced the successful closing of the $43,975,000 fixed-rate Series 2013A Bond issue for Greencroft Obligated Group. At the time of issuance, the Greencroft Obligated Group consists of Greencroft Goshen, Hamilton Grove and Southfield Village. Each of the Obligated Group members is a 501(c)(3) corporation and each owns and operates a continuing care retirement community.

The $43,975,000 Series 2013A Bonds were issued simultaneously with the Series 2013B Bonds, which total $31,000,000 and were directly purchased by Huntington National Bank. The 2013A and 2013B Bonds were issued to: refund all outstanding indebtedness of Greencroft Obligated Group; finance the costs of constructing an addition to the existing Greencroft Goshen Healthcare facility and related improvements; fund a Series 2013A Debt Service Reserve Fund; and pay certain costs of issuance of the Series 2013 Bonds.

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In an effort to meet the present and future demands for healthcare of seniors in Goshen, Greencroft Goshen has been engaged in a redevelopment plan to renovate its healthcare facility which currently consists of 240 skilled nursing beds. The first Phase of the Project consists of a 2-story, 64 to 66-bed healthcare building addition creating four new households with 16 rooms in each household, a total of approximately 47,000 square feet of new construction.

The main goal of the new project is to create a more homelike environment with more private rooms and baths. Although new units will be added, certain older units will be taken offline, and the net effect is that upon completion, the number of nursing beds will be relatively unchanged. In addition, a new “Main Street” town center will be added and other improvements on the Goshen campus, to refresh and modernize so that Greencroft Goshen can remain competitive.

CBRE Provides Acquisition Financing for JV Acquisition 

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Aron Will, Senior Vice President of CBRE’s Senior Housing Debt & Structured Finance Group has arranged acquisition financing on behalf of a joint venture between The Freshwater Group/Watermark Retirement Communities and NorthStar Healthcare Income, Inc. for the acquisition of Harvard Square, a 183 unit, 90% occupied Independent Living/Assisted Living community located in Denver, CO.

The $21.5 million floating rate loan was originated through CBRE’s Freddie Mac Seller Servicer direct lending program. CBRE secured a 7-year term with 36 months interest only.

Carl Mittendorff, TFG’s Chief Investment Officer, represented the joint venture on the acquisition. Founded in 2005, TFG is the successor company to The Fountains, a company founded in 1985 by David Freshwater which grew into one of the nation’s top 25 seniors housing owners and operators. Watermark Retirement Communities, a TFG portfolio company, will operate the community. Currently, Watermark manages 33 senior housing communities nationally across eighteen states representing 7,300 units. 

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 NorthStar Healthcare is a public, non-traded REIT that was formed to originate, acquire and asset manage a diversified portfolio of debt and equity investments in healthcare real estate, with a focus on the needs driven senior housing sector. 

Cambridge Provides $2M Refinancing for Senior Apartments in Illinois

Cambridge Realty Capital Companies has provided a $1,918,100 million refinancing through the FHA-insured HUD Section 223(a)(7) loan to refinance the Lexington Hills Apartments, a 120-unit complex of Section 8 apartments for the elderly in Peoria, Ill. The property includes five multi-unit buildings. The interest rate for the fully amortized, 40-year term loan was not announced.

Beech Street Capital Closes $6 Million Refinance for Mich. SNF

Beech Street Capital, a Capital One company, announced recently the origination of a $6 million FHA Section 232/223(a)(7) loan to refinance St. Joseph’s Healthcare Center, a 169-bed skilled nursing facility in Hamtramck, Mich. The transaction was originated by Josh Rosen, senior vice president of Beech Street Capital out of the firm’s Chicago office.

Beech Street was able to significantly reduce monthly debt service payments for the borrower, Olympia Group LLC, through a lower interest rate. The lender also delivered the financing within a specific timeframe. 

Beech Street expects to see more refinance activity in the seniors market in the coming year. “With unemployment down and interest rates likely to rise further, anyone with a current HUD-insured mortgage should take the opportunity to refinance under Section HUD 223(a)(7),” Rosen says. “The savings in debt service are often considerable.”

Cambridge Arranges $4.9 Million Loan for Maine Nursing Home

Cambridge Realty Capital Companies reports arranging a $4,966,300 loan to refinance the Marshwood Center skilled care nursing home located in Lewiston, Maine.

The fully-amortized, 33-1/2 year loan was arranged for the owner 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.

Marshwood Center is a 108-bed skilled care nursing facility. It provides a range of medical and health services which includes speech, physical and occupational therapy, colostomy care, podiatry, IV therapy, wound care, palliative care and hospice care. Non-medical services include meals, on-site laundry facilities, fitness room and recreational activities.

Cambridge Arranges $6.3 Million Loan for Maine SNF

Cambridge Realty Capital Companies recently announced it has arranged a $6,330,400 loan to refinance the Oak Grove Center skilled care nursing home located in Waterville, Maine. The fully-amortized,  40-year loan was arranged for the owner using the HUD Section 232/Section 223(a)(7) funding program and was underwritten by Cambridge Realty Capital Ltd. of Illinois. 

Oak Grove Center is a 90-bed skilled care nursing home and is an American Health Care Quality Award winner.  It provides a range of medical and health services including audiology care, colostomy care, dementia care, IV therapy, psychiatric care, speech, physical and occupational therapy, podiatry care, vision care, wound care, medication management and palliative care.  Non-medical services include meals, beauty/barber services, housekeeping services, on-site laundry facilities and a 24-hour emergency alert and response system.

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