Senior Housing Finance Activity: Grandbridge, Lancaster Pollard, HJ Sims

Grandbridge Facilitates Debt Assumption for HCN Acquisition

Grandbridge’s Seniors Housing and Healthcare Finance Team recently facilitated the acquisition and approximately $4.4 million loan assumption of Cascades at Grass Valley, formerly Highgate Grass Valley, in Grass Valley, Calif., on behalf of Health Care REIT. The purchase price was not disclosed.

Cascade Senior Living will operate the property through a long-term lease.

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Lancaster Pollard Assists Kaplan Development Group in $23.8 Million Refinancing

Lancaster Pollard helped New York-based Kaplan Development Group refinance two of its assisted living properties located in New Hampshire and Georgia for a total of $23.8 million.

The properties include Bentley Commons at Bedford, a 97-unit assisted living community in Bedford, NH, and Merryvale Assisted Living, a 74-unit assisted living and memory care facility in Oxford, GA.

Each of the facilities were refinanced with FHA Sec. 232/223(f)-insured loans and the owners obtained fixed-rate debt well below 5% for a 35-year term, with proceeds going towards paying off bonds and funding future capital needs.

The non-recourse features of the new debt freed up extra guarantee capacity for Kaplan Development Group, which it plans to use in support of several new development projects underway in Massachusetts.

Both transactions were led by Tom Grywalski, a vice president for Lancaster Pollard based out of the firm’s Philadelphia office.

Hearth Management Refinances Syracuse ALF for $3.8 Million

Lancaster Pollard also helped Hearth Management, also based in New York, refinance The Hearth on James, a 71-unit assisted living facility located in Syracuse, NY, for $3.8 million.

The Hearth on James was built in 2000 and Lancaster Pollard helped the owners realize debt service savings by refinancing their existing indebtedness, which consisted of senior housing revenue bonds issued through the Syracuse Housing Authority at a 7.5% interest rate.

Like with Kaplan Development Group stated above, Lancaster Pollard achieved this by using the FHA Sec. 232/223(f) program to obtain a fixed interest rate below 5% for the next 35 years. 

This refinancing was also led by Tom Grywalski of Lancaster Pollard’s Philadelphia office.

Cambridge Arranges $12.6M Loan for Ill. ALF

Cambridge Realty Capital Companies recently arranged a $12.6 million loan to refinance The Ponds of Wealshire, a 141-bed assisted living community located in Lincolnshire, Ill. 

The 35-year loan was arranged using the HUD Section 232/223(a)(7) funding program.

HJ Sims Closes $5.4M Refinance for 3 Ark. Senior Living Communities

HJ Sims successfully closed a $5.4 million subordinated loan for Arkansas-based Fox Ridge Management, LLC, providing refinancing of a portfolio of three senior living communities in the Little Rock area.

The Fox Ridge communities—located in Chenal, Bryant and North Little Rock—are being refinanced in conjunction with $37.5 million of long-term fixed rate HUD insured financing.

Together, the three communities include 261 assisted living, 24 memory care and eight independent living units. 

Proceeds from the refinancing will be used to repay existing senior loans, payoff entrance fee refunds and fund reserves. Additionally, entrance fees at the Chenal community are being refunded in order to convert entrance fee residents to rental residents.

To provide financial flexibility for Fox Ridge and meet amortization requirements for investors, HJ Sims structured both a fixed and variable principal payment schedule. Sims funded the loan via a private placement to accredited investors. 

Written by Jason Oliva

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