Senior Housing Finance Activity: Cushman & Wakefield, Greystone, Cambridge

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

Cushman & Wakefield Arranges $48.2M in Development Capital for Two Mass. Senior Housing Projects

Cushman & Wakefield’s Senior Housing Capital Markets, part of the firm’s equity, debt and structured finance service line, arranged $48.2 million of senior construction financing and joint venture equity capital for the construction and development of two senior housing projects for LCB Senior Living, LLC. These senior housing projects are located in the towns of Easton and Ashland, Massachusetts.

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The Residence at Valley Farm in Ashland, Mass. will be an 80-unit, 83-bed independent, assisted and memory care facility. Ashland is a bedroom community located 20 miles west of Boston.  The three-story 72,000-square-foot building will be situated on Pond Road in a heavily trafficked retail corridor. 

The Residence at Five Corners in Easton, Mass. will be an 84-unit, 90-bed independent, assisted and memory care facility. Easton is roughly 30 miles south of downtown Boston.  The site for this three-story 80,000-square-foot building is also located in a retail centric location.

M&T Bank provided the construction financing on the Ashland project while PNC Bank provided the construction financing for the Easton project. The joint venture equity on both projects was provided by an institutional investor. Construction on both projects commenced in June and both are planning their respective openings in late summer or early fall of next year. 

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“M&T and PNC continue to be great lenders for the senior housing sector,” says Cushman and Wakefield’s Executive Managing Director Richard Swartz, in a news release.

LCB Senior Living is a senior housing owner and operator consisting of the former management team of Newton Senior Living, and the newest properties will add to its portfolio of senior housing communities in the New England market. The development of these two projects marks LCB’s fifth and sixth developments since recapitalizing its company in 2013. Additionally LCB has acquired four senior housing properties and manages two others. 

In addition to Swartz, Managing Director Jay Wagner, Director Aaron Rosenzweig and Associate Stuart Kim all participated in this transaction.  

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Greystone Provides $33M HUD Loan to Refinance SNF in Bronx, N.Y.

Greystone, a national provider of multifamily and healthcare mortgage loans, provided a $32.6 million HUD loan to refinance a 480-bed skilled nursing facility in Bronx, NY. The transaction was originatedby Fred Levine, a senior mortgage originator at the firm.

The FHA financing was provided for Bay Park Center for Nursing and Rehabilitation, a nursing home and rehabilitation center located on Co-op City Boulevard. Greystone previously providedfinancing for 801 Co-op City Blvd’s acquisition of the facility with abridge loan in 2008 and permanent HUD loan in 2009, now refinanced withthis latest transaction. The facility is part of the SentosaCare Network in New York.

“We are thrilled to have been able to workwith the same team from the acquisition bridge loan to the HUD take out and now the refinancing,” says Ben Philipson, president of SentosaCare, in a news release, adding that Greystone is familiar with SentosaCare properties. 

The refinancing will benefit Bay Park Center for Nursing and Rehabilitation’s residents for years to come, says Betsy Vartanian, head of FHA lending at Greystone, in the same release.

Greystone provides mortgage finance solutions across multipleplatforms, including FHA, Fannie Mae, Freddie Mac, USDA, CMBS, bridge,mezzanine and other proprietary loan programs. In 2013, Greystoneranked #1 in combined multifamily and healthcare FHA lending, #3 inAffordable Housing volume as a Fannie Mae DUS lender, and as a top-5 Freddie Mac lender for seniors housing.

Cambridge Arranges $5.2M HUD Lean Loan to Refinance Skilled Nursing, Rehabilitation Center in Colo.

Cambridge Realty Capital Companies arranged a $5.2 million HUD Lean loan to refinance the Broomfield Skilled Nursing Care and Rehabilitation Center located in Broomfield, Colo. The fully-amortized, 35-year loan was arranged for the owner, a Colorado limited partnership, using HUD Section 232 pursuant to Section 223(a)(7)funding program, says Jeffrey A. Davis, Cambridge Chairman, in a news release. Cambridge Realty Capital Ltd. of Illinois underwrote the transaction. 

Broomfield Skilled Nursing Care and Rehabilitation Center is a 210-bed skilled care nursing facility. The facility provides short-term rehabilitation services, wound care, hospice care, respite care.  Broomfield Skilled Nursing and Rehabilitation Center is staffed seven days a week with registered nurses, licensed practical nurses and certified nursing assistants. 

Cambridge Arranges $12.5M HUD Loan to Refinance ALF in Ill.

Cambridge Realty Capital Companies arranged a $12.5 million HUD Lean loan to refinance The Ponds of Wealshire Assisted Living facility located in Lincolnshire, Ill. The fully-amortized, 35-year loan was arranged for the owner, an Illinois limited liability company, using HUD Section 232 pursuant to Section 223(a)(7) funding program, says Jeffrey A. Davis, Cambridge Chairman, in a news release. Cambridge Realty Capital Ltd. of Illinois underwrote the transaction.

The Ponds of Wealshire is a 141-bed assisted living facility. The facility provides rehabilitation services, respite care and progressive memory care.

Cambridge Arranges $10M HUD Lean Loan to Refinance Calif. Skilled Nursing Care, Assisted Living Hospital

Cambridge Realty Capital Companies arranged a $10 million HUD Lean loan to refinance the Santa Anita Convalescent Hospital located in Temple City, CA. The fully-amortized, 30-year loan was arranged for the owner, a California corporation, using HUD Section 232 pursuant to Section 223(a)(7) funding program, says Jeffrey A. Davis, Cambridge Chairman, in a news release. Cambridge Realty Capital Ltd. of Illinois underwrote the transaction.

The loan was coordinated by Hymie Barber, the national originations manager for Cambridge and the managing director of Catalyst/Cambridge Health Care Finance in Los Angeles, Calif.

Santa Anita Convalescent Hospital is a 541-bed facility offering skilled nursing care and assisted living. There are 391 skilled nursing care beds and 150 assisted living beds.

Capital One Bank Closes $14.6M FHA Loan to Refinance Fla. ALF

Capital One Specialty Healthcare Real Estate, part of Capital One Bank’s Commercial Real Estate Group, provided a $14.6 million HUD 232/223(f) loan to refinance Tequesta Terrace, a 100-bed assisted living facility in Tequesta, Fla. The transaction was originated by Carolyn Whatley, senior vice president of originations, headquartered in the company’s Palm Beach office.  

Tequesta Terrace is owned by Terrace Communities, which  also owns assisted living communities in Vermont, New Hampshire, Maine, and Florida.

 “We develop financing alternatives that meet [borrowers’] requirements in different ways,” Whatley says says in a news release.  “Whenever possible, we want to offer alternatives.”  

In this case, Whatley and her team presented the borrowers with various structures. After weighing the options, the partners chose HUD’s refinance program because it fits well with their strategy as long-term holders of the property, Capital One Bank says.

At the same time, the loan is assumable and can be prepaid, so it provides flexibility in the event their goals change. Capital One Bank is a Fannie Mae lender, a Freddie Mac Program Plus lender and a MAP- and LEAN-approved HUD lender.

The non-recourse, 35-year fixed rate loan was financed under the HUD 232/223(f) program and was underwritten under the LEAN process. In addition to Tequesta Terrace, Capital One Multifamily is refinancing two other properties owned by Terrace Communities, both located in New Hampshire.  

Tequesta Terrace was built in 2001. It has 71 assisted living units with six different floor plans, from luxury studios to two-bedroom units. All units have kitchenettes, individually controlled heating and air conditioning, and carpet and vinyl flooring. Some apartments have private patios. The memory care unit has 29 beds, with both private and semiprivate suites available.   

Housing & Healthcare Finance Closes $68.7 HUD Loan for N.J. Skilled Nursing Facility

Housing & Healthcare Finance (HHC Finance) closed a $68.7 million HUD loan for a skilled nursing facility purchased by Flushing, N.Y. based Center Management Group in December 2012.  The 547 bed, 234 unit skilled nursing facility, located in Lincoln Park, N.J., is the largest privately operated nursing home in the state.  

The facility is currently at 98% occupancy. The HUD loan refinanced all of the existing debt plus financed capex. Lisa Erdelyi from HHC Finance was the underwriter on the loan. 

Written by Cassandra Dowell

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