Senior Housing Finance Activity: Red Capital, HJ Sims, Prudential Mortgage

Cambridge Arranges $9.6M Loan for Mich. ALF

Cambridge Realty Capital Companies reports arranging a $9,631,00 loan to refinance the Crystal Creek Assisted Living community located in Canton, Mich.

The fully-amortized 35-year loan was arranged for the owner using the HUD Section 232/Section 223(f) funding program and was underwritten by Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-insured HUD loans.

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Crystal Creek is an 80-bed assisted living community that provides a range of medical and health services  including 24-hour staffing, dementia care, medication supervision, dental care, psychiatric care, palliative care and hospice care. Non-medical services include meals, housekeeping, laundry services and recreational activities.

Cain Brothers Underwrites Friendship Village’s $58M Bond Issue

Cain Brothers served as sole underwriter in the issuance of the Friendship Village Sunset Hills Series 2013 Bonds.

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FVSH is a life care CCRC in St. Louis established in 1976 that currently includes 320 independent living apartments and cottages, 60 assisted living units and 120 skilled nursing beds on a 52-acre campus, managed by Life Care Services.

The bonds were issued as unenhanced fixed rate bonds and were rated ‘A-’ by Fitch Ratings based on FVSH’s underlying credit. The bond proceeds were used to fund the second phase of a multi-year, multi-phase campus redevelopment plan. The second phase includes the refurbishment of existing independent living apartment units, the construction of two new buildings containing a total of 78 new ILUs, new common areas, updated amenities, an underground parking facility, and five new duplex villas.

The bonds were issued in two tranches. The $41,000,000 Series 2013A Bonds were structured as long-term tax-exempt fixed rate debt with a 30-year maturity. The $17,000,000 Series 2013B Bonds were structured as short-term tax-exempt fixed rate bonds yielding 2.85% with a final maturity of five years. Blended together, the financing structure provided FVSH with an all-in fixed rate true interest cost of 5.61%.

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HJ Sims, Omega Communities Close $25M Financing for New Senior Community

HJ Sims recently announced the successful closing of the $24,500,000 Series 2014 bond issue for the Springs of South Biscayne, providing funds to construct and furnish a new, rental assisted living and memory care community in North Port, Fla.

The Springs of South Biscayne is located on the campus of the South Biscayne Church, approximately 45 miles south of Sarasota, Florida. Once complete, the community will offer 95 assisted living apartments and 35 memory care units. The community is owned and being developed by Omega Communities, a for-profit company based in Birmingham, Alabama. Omega Communities specializes in the development of faith based senior living communities in affinity relationships with well-established sponsoring churches. South Biscayne Church does not have an equity position or ownership interest in the community; however, the church will receive a percentage of the operating profits from the facility and will have the ability to serve and minister to the staff and residents of the community.

The financing structure included the issuance of $21.8 million tax-exempt, senior draw-down bonds along with $2.7 million tax-exempt, subordinate bonds. The draw-down feature reduced the required capitalized interest funding by over $1.5 million dollars.

Ziegler Closes $104M Financing for Rockwood Retirement Communities

Ziegler recently announced the successful closing of the $103,755,000 unrated, fixed-rate Series 2014 Bond issue for Rockwood Retirement Communities. Spokane United Methodist Homes d/b/a Rockwood Retirement Communities is a Washington not-for-profit corporation organized in 1958 by members of the Central United Methodist Church of Spokane, Washington.

Rockwood is currently developing a new 11-story tower on the Rockwood South Hill campus. The tower will include 65 new independent living apartments, an underground parking structure, common space and amenities.

Proceeds of the Series 2014 Bonds will be used to finance the costs of The Summit project; refinance outstanding indebtedness; pay a portion of the interest on the bonds during the construction of the project (approximately 26 months); fund debt service reserve funds; and pay certain costs relating to the issuance of the Series 2014 Bonds.

Contemporary Healthcare Capital Provides $1.7M Acquisition Loan

Contemporary Healthcare Capital, LLC has provided a $1,700,000 senior mortgage loan to a 50-bed licensed assisted living and memory care facility located in Charlotte, N.C.

The funds will be used for the acquisition of the facility, working capital and closing costs. No other details were disclosed.

RED Capital Closes $39M of Senior Care Loans

RED Mortgage Capital recently announced closing nearly $40 million in loans for senior housing and care properties. One transaction was a $4.1 million mortgage loan through the HUD Section 232/223(f) program for The Waterford at College View in Lincoln, Neb., by Red Mortgage Capital LLC. Another by Red Mortgage was a $9 million mortgage loan through the HUD Section 241 program for the Village at Cedar Hill in Windsor, Vt. The last was a balance sheet loan by Red Capital Partners LLC in the amount of $26.3 million for CNL Healthcare Property’s development of a Tega Cay retirement community in South Carolina.

Dougherty Mortgage Provides $12 Million Loan for Senior Housing Complex

Dougherty Mortgage LLC recently originated a $12.1 million loan for the refinancing of Minnehaha Senior Living, a 77-unit senior living community in Minneapolis.

The 40-year term, 40-year amortization loan was originated through the HUD Section 232/223(a)(7) program by Dougherty’s Minneapolis office for Covenire Care Nokomis, LLC.

About 20% of the community’s units are designated affordable for people whose income is at 50% of the area median income.

Lancaster Pollard Provides $16.5 Million of Financing

Lancaster Pollard was recently engaged to refinance the existing variable-rate indebtedness of Bethel Retirement Community, a 166-unit community located in Modesto, Calif.

The firm recommended a 10-year, fixed-rate Fannie Mae seniors housing loan for $13 million that amortizes over 30 years. Bethel Retirement Community was able to pay off the variable rate loans and interest rate swap as well as to use the proceeds to complete capital improvements to fund future growth.

The transaction was led by Jason Dopoulos, a vice president located in Lancaster Pollard’s Los Angeles office.

Lancaster Pollard was also engaged to assist Sprenger Health Care Systems, which has several properties in northeast Ohio and wanted to expand its skilled nursing and assisted living facilities at the Towne Center Community Campus.

The Town Center Community Campus is a CCRC built in 2007 and located in the city of Avon Lake. Because Sprenger has an existing FHA loan, Lancaster Pollard recommended its Sec. 241(a) supplemental loan program for its low, fixed interest rate plus its nonrecourse and 40-year amortization features. The firm also assisted Sprenger in getting approval from FHA for an early start to construction to beat the winter weather.

By the time construction was completed, the vast majority of the costs were funded for the $3.5 million mortgage, which resulted in the interest rate being much less than a typical construction loan. The completed expansion project provided 20 additional skilled nursing beds and 12 additional assisted living units as well as larger dining areas to keep up with the market demand.

The transaction was guided by Kass Matt, managing director and regional manager with Lancaster Pollard in Columbus.

Prudential Mortgage Originates $221M Loan for CNL Healthcare Acquisitions

Prudential Mortgage Capital Company has originated a $220.6 million General Account loan for CNL Healthcare Properties’ acquisition of the Bonaventure Senior Living portfolio. The deal includes 17 independent living, assisted living and memory care facilities totaling 1,936 beds in Oregon, Washington state, Montana, Idaho and Nevada.

The financing was originated and underwritten by Prudential Mortgage Capital’s senior housing team with a five-year loan term. Trace Wilson, an associate with Prudential Mortgage Capital Company, was the lead on the transaction.

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