Senior Housing Finance Activity: Greystone, Oak Grove, Cambridge

Here’s a roundup of some of the most recent financing transactions in senior housing and care.

Greystone Provides $36 Million HUD Loan to Refinance N.Y. Skilled Nursing Facility

Greystone, a national provider of multifamily and healthcare mortgage loans, announced June 9 it provided a $36.7 million HUD loan to refinance a 314-bed skilled nursing facility in Queens, N.Y. The transaction was originated by Fred Levine, a leading senior mortgage banker at the firm.

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Greystone initially funded a bridge loan for the acquisition of Holliswood Center for Rehabilitation and Healthcare by Centers for Specialty Care Group in May 2013, and closed the permanent FHA financing in less than one year. The HUD loan carries both a 30-year term and amortization at a low rate. Holliswood is a 314-bed rehabilitation and skilled nursing facility located in New York’s Hollis neighborhood.

“Greystone’s bridge to HUD loan process has become a mature platform that provides a number of benefits for healthcare property owners, satisfying the immediate need for funding and enabling the long-term, low-rate financing for which HUD is known,” said Betsy Vartanian, head of FHA lending at Greystone, in a news release.

Greystone provides mortgage finance solutions across multiple platforms, including FHA, Fannie Mae, Freddie Mac, USDA, CMBS, bridge, mezzanine and other proprietary loan programs. In 2013, Greystone ranked No. 1 in combined multifamily and healthcare FHA lending, No. 3 in Affordable Housing volume as a Fannie Mae DUS lender, and as a top-5 Freddie Mac lender for seniors housing.

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Lantern Crest Senior Living Undergoes $13.5 Million Refinancing 

An 80-unit assisted living and memory care community in Santee, Calif. received a $13.5 million loan for refinancing purposes.

Aron Will, Senior Vice President of CBRE’s Senior Housing Debt & Structured Finance team in Houston, TX, along with Bill Chiles and Scott Peterson of CBRE’s Debt & Structured Finance team in San Diego, arranged the refinancing on behalf of The Grant Companies for Lantern Crest Senior Living.

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The $13.5 million loan was originated through CBRE’s Freddie Mac Seller Servicer direct lending program. CBRE secured a 10 year fixed-rate mortgage which includes 12 months of interest only. The community will continue to be operated by Integral Senior Living (ISL).

Founded in 1989, The Grant Companies has developed more than $500 million in projects ranging from medical office buildings to senior housing and other commercial developments.

Carlsbad, California-based ISL operates 56 communities in nine states representing over 5,000 units. Of the 56 communities ISL manages, 36 are located in California.

Oak Grove Capital Originates $62 Million for Five Senior Living Loans 

National lender Oak Grove Capital recently originated five loans totaling $62.1 million for affordable, market rate and seniors housing facilities across the United States. The deals, ranging from $19.6 million to $5 million, closed between May 20 and May 30.

The largest affordable housing deal was for Ridge Club Apartments, a 372-unit complex in Orlando, Fla. The $19.6 million Freddie Mac loan was facilitated by Tim Leonhard, managing director of affordable housing, Oak Grove Capital.

The market rate housing deal was for River Park Apartments, a 276-unit complex in Dallas, Texas. The $14.5 million Fannie Mae – Multifamily loan was facilitated by Tim Leonhard, managing director of affordable housing, Oak Grove Capital.

The largest seniors housing deal was for Carlton Plaza of Fremont, a 122-unit complex in Fremont, Calif. The $14.7 million Fannie Mae loan was facilitated by Jessica Morgan Wolters, executive vice president, Oak Grove Capital.

Cambridge Arranges $13.8 Million HUD Loan to Refinance Fla. Skilled Care Nursing Facility, Assisted Living Facility

Cambridge Realty Capital Companies arranged a $13.8 million HUD Lean loan to refinance the Hawthorne Health and Rehabilitation Center and the Hawthorne Inn — both are in Brandon, Fla.

The fully-amortized, 30-year loan was arranged for the owner, a Florida limited liability company, using the HUD Section 232 pursuant to Section 223(f) funding program, which is used to refinance existing loans, says Jeffrey A. Davis, Cambridge Chairman in a news release.

Underwriting the transaction was Cambridge Realty Capital Ltd. of Illinois.

Hawthorne Health and Rehabilitation is a 120-bed skilled care nursing facility.  It provides a health care services including physical, occupational and speech therapy.  

Hawthorne Inn is a 58-bed assisted living facility that provides 24-hour on-site staffing and a variety of day-to-day living services.

Invest Atlanta Approves $7.5 million for Senior Housing in Atlanta

Atlanta, Ga.’s economic authority approved $7.5 million in tax-exempt bonds to finance 80-units of independent living housing for seniors in Atlanta’s Old Fourth Ward.

Led by Wingate Capital Partners, the housing project will be jointly developed with Columbia Residential on what is currently vacant land located at the southeast corner of Boulevard and Angier Avenue.

The four-story wood-framed building will be built over one level of parking and units will be leased to seniors 62 and older with income at or below 60% of the area median income.

The property will operate under a Housing Assistance Payments contract provided by the U.S. Department of Housing and Urban Development (HUD). This subsidy limits the tenants’ out of pocket housing expenses.

This is the first phase of a multi-phase project. Construction is expected to take approximately sixteen months and be completed sometime in fall of 2015.

Cambridge Arranges $3.5 Million HUD Loan to Refinance Pa. Senior Apartments

Cambridge Realty Capital Companies arranged a $3.5 million HUD MAP loan to refinance Millersville Manor, a Section 8, 122-unit elderly apartment building, located in Millersville, Pa.

The fully-amortized, 33-½ year loan was arranged for the owner, a Pennsylvania limited liability company, using HUD Section 207 pursuant to Section 223(f) funding program, said Cambridge Chairman Jeffrey A. Davis. 

Cambridge Realty Capital Ltd. of Illinois underwrote the transaction.

Written by Cassandra Dowell

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