Senior Housing Finance Activity: Grandbridge, RBC, Ziegler

Grandbridge Facilitates Seniors Housing Acquisition of Ga. Senior Housing community

The Atlanta-based Seniors Housing and Healthcare Finance team of Grandbridge Real Estate Capital closed a $4,540,000 supplemental loan in conjunction with the assumption of the existing $19,000,000 first mortgage and acquisition of Noble Village of Sugarloaf.

Located in Suwanee, Ga., the 109-unit seniors housing community features numerous amenities that include a pool, fitness center, library, media center, billiards room, theatre, coffee house, walking paths and full beauty salon and barber shop.

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Funding for the fixed rate supplemental loan was provided through Fannie Mae’s DUS (Delegated Underwriting and Servicing) loan product.

Grandbridge was able to underwrite and close the $4,540,000 supplemental loan at the same time as the assumption of the existing Fannie Mae Loan; a loan that Grandbridge had originated for the seller several years earlier. The entire assumption and supplemental loan transaction was completed in 63 days from application to close.

Senior Vice President Richard Thomas originated the transaction.

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RBC Capital Closes $120M Equity Fund for 18 Low-Income Properties in 13 States

RBC Capital  Markets’ Tax Credit Equity Group closed a $119.7 million equity fund that will help finance 18 low-income housing tax credit (LIHTC) properties in 13 states.

The properties will feature 1,454 units of affordable housing within 15 multifamily, one mixed multifamily and seniors, and two seniors developments. They are located in Arizona, California, Kentucky, Massachusetts, Minnesota, Missouri, New York, North Carolina, Pennsylvania, South Carolina, Texas, Virginia, and Washington.

Five institutional investors participated in RBC Tax Credit Equity National Fund 20.

A LIHTC syndicator, RBC Capital Markets’ Tax Credit Equity Group has raised more than $5.4 billion of equity for affordable multifamily and senior housing, historic and new markets developments, representing more than 780 properties and in excess of 66,000 units.

Ziegler Closes $12M Financing for Conn. CCRC

Ziegler, a specialty investment bank, closed $12,000,000 Series 2014A, tax-exempt, fixed-rate bond
financing for Duncaster, a new client to Ziegler. Duncaster is a Connecticut non-stock, not-for-profit 501(c)(3) corporation located in Bloomfield, Connecticut.

Duncaster was incorporated in 1980, and opened in May 1984 as the first continuing care retirement
community (CCRC) in the Hartford region. Duncaster offers independent living in residential units and provides a variety of personal and recreational services to residents.

In addition, Duncaster provides its residents skilled nursing —at no additional cost — and certain medical care for either short or long  periods of time at the Duncaster health center and nursing facility should they require it.

Duncaster is governed by a board of directors and employs 286 full- and part-time staff, 86 of whom currently live in Bloomfield.

Duncaster’s unit mix after the 2014 project will consist of 195 independent living units, 42 assisted living units and 60 skilled nursing units.

The 2014 transaction is two-tranched, inclusive of a Construction Loan with a bank and the Series A Fixed-rate Bonds which are rated “BBB-” with a stable outlook from Fitch, along with a specified amount of borrower’s equity used to finance the construction of 12 independent living units and 12 assisted living memory care units; fund the acquisition of an adjacent parcel of land and related
demolition and remediation as well as fund miscellaneous capital expenditures of the borrower;  fund a Debt Service Reserve Fund for the Series A Bonds; fund capitalized interest for the Series A Bonds; and pay certain costs relating to the issuance of the Series A Bonds and the Construction Loan.

“This expansion project and the 100% pre-sales of the new independent living units reflects the increasing demand for Duncaster housing and senior services,” said Keith Robertson, managing director in Ziegler’s senior living finance practice, in a written statement.

RED Capital Provides $3.85M Construction Loan for Fla. Senior Housing Community

RED Capital Partners, LLC, the proprietary debt and equity banking arm of comprehensive capital provider RED Capital Group, LLC, recently completed a $3.85 million mezzanine balance sheet construction loan to an affiliate of Discovery Senior Living.

Discovery Village at Palm Beach Gardens will be a 120-unit Class A seniors housing community located in Palm Beach Gardens, Fla. When complete, the community will include 30 supervised independent living, 60 assisted living, and 30 memory care units.

The community will include amenities such as dining rooms, game room, club and bar, Bistro and ice cream parlor, pet park, fitness center, heated indoor therapy pool, movie theater, beauty salon, spa, barber shop, craft center, and garden area.

The facility will also host a state-of-the-art Discovery Zone Media Center with cognitive brain fitness technology.

Discovery Senior Living is an award winning, fully integrated, seniors housing development and management company based in Bonita Springs, Fla. Discovery operates 14 senior living communities with over 3,500 units and is actively acquiring and developing in Texas and the southern United States.

“We are excited about continuing our long relationship with RED,” said Richard Hutchinson, president and CFO of Discovery Senior living, in a written statement.

RED and Discovering Senior Living have had a long-standing relationship, said James Scribner, managing director for RED.

“For this transaction, creativity was essential – being able to work through the complexities of a mezzanine loan takes expertise and creativity,” Scribner said. “Additionally, our strong relationship with the first mortgage lender, Community & Southern Bank, was instrumental.”

NorthMarq Capital Secures $9M Refinance for Calif. Memory Care Community

Stuart Oswald, senior vice president/managing director of NorthMarq Capital’s Seattle-based regional office, arranged $9.4 million in financing for Laurel Court at Quail park.

This new 40 unit/40 bed first class memory care community, located at 5050 W. Tulare Avenue in Visalia, Calif., is operated by Living Care Lifestyles.

NorthMarq arranged the transaction, a cash-out refinance, for the borrower through its correspondent relationship with a life insurance company.

Written by Cassandra Dowell

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