Senior Housing Finance Activity: Dwight Capital, Cushman & Wakefield

Dwight Capital Funds $42 Million of HUD Loans in December

Dwight Capital, a national provider of commercial loans, has announced that it has funded $41.5 million in Department of Housing and Urban Development (HUD) loans for three multifamily and senior housing properties. 

The properties include: Highland Park Apartments in Denver, Colo., Reserve at Towne Crossing in Longview, Texas, and Christian Village in San Angelo, Texas. All loans closed on Dec. 30, 2014, and were financed through HUD’s 223(a)(7) program. 

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Highland Park Apartments, a LEED Gold certified complex, features upscale one- and two-bedroom, apartments. The $19,904,600 loan was originated by Kevin Lifshitz, originator, and Adam Sasouness, managing principal at Dwight Capital.

“Not only were we able to save the owner over $95,000 in annual debt service payments, but we were also able to build the loan’s 8% prepayment penalty in its entirety into the new rate, allowing the owner to lower his interest rate at virtually no cost,” Sasouness said in a statement. “Additionally, we were able to lock in the new rate prior to receiving a Firm Commitment from HUD.

The Reserve at Towne Crossing, a 216-unit multifamily complex, was also financed through the HUD 223(a)(7) program. Josh Hoffman, senior originator and director of business development, originated the $16,977,500 transaction. The refinance generated more than $130,000 in annual debt service savings for the property. 

Christian Village Apartments, a 150-unit, Project Based Section-8 senior housing complex, was refinanced with a $4,621,600 loan originated by Ari Mandelbaum, executive vice president, and Sasouness, of Dwight. The transaction reduced the interest rate by more than 150 basis points and created a costs savings of approximately $40,000 in annual debt service payments. The HUD-insured facility is owned by West Texas Christian Foundation, a nonprofit organization.

Caremerge Raises $4 Million To Expand Care Platform in Senior Health Care

Caremerge LLC, a communication and care coordination platform for the senior care industry, announced recently a $4 million first institutional financing round led by Cambia Health Solutions, and included additional investments from Generator Ventures, GE Ventures, Arsenal Venture Partners and Ziegler-LinkaAge Longevity Fund. 

The announcement comes as the health care marketplace increasingly uses technology to support better and more innovative health care, specifically to benefit seniors. 

“We are honored to have such visionary partners as investors. Each one brings tremendous value to Caremerge’s vision to revolutionize care coordination for our most chronic and fragile demographic,” said Asif Khan, founder and CEO of Caremerge. “These new partnerships and capital will allow Caremerge to continue to take a leading role in the senior care industry through simple technology; and therefore improving the lives of everyone involved.”

Cushman & Wakefield Senior Housing Arranges $50 Million in Construction Financing

In its exclusive representation of LCB Senior Living, Cushman & Wakefield Senior Housing Capital Markets has arranged $49.6 million in construction financing and joint venture equity for two senior housing developments in New England. 

The projects are LCB’s seventh and eighth senior housing developments since it began its development program in 2013. 

The Residence at Salem Woods in Salem, N.H., will be an 84-apartment/88-bed independent, assisted living and memory care community situated in a three-story building on a 7-acre site.

Wells Fargo provided $15.6 million in construction financing while the joint venture equity was provided by an institutional investor. The project broke ground in November 2014 and is expected to open in early 2016.

The Residence at Quarry Hill in South Burlington, Vt., will be a 102-apartment/104-bed independent, assisted living and memory care community developed on a 2.7-acre site just outside of downtown Burlington, Vt. The land site was acquired as part of a larger portfolio acquisition that occurred earlier in 2014, which included two premier senior housing properties in Vermont.

PNC Bank provided $18.4 million in construction financing while Virtus Real Estate Capital provided $8.5 million in joint venture equity. Construction will begin in January 2015 with a planned summer 2016 opening.

LCB is developing and acquiring a robust portfolio of senior housing communities in the New England market and since it recapitalized its organization in early 2013 has broken ground on eight properties and acquired an additional six properties across five New England states totaling more than $364 million in project capitalization.

To date, LCB owns and operates 1,343 seniors housing beds, 523 of which are currently under construction. 

The Cushman & Wakefield team involved in the transactions included Executive Managing Director Rick Swartz, Managing Director Jay Wagner, Director Aaron Rosenzweig and Associate Stuart Kim.

Preston Hollow Capital Completes $25 Million Bond Financing 

Preston Hollow Capital, a diversified merchant bank, has announced that it has completed a $24.9 million bond financing for the construction of a 120-unit assisted living and memory care community in Palm Bay, Fla.

The project, which will be known as Riverview Senior Resort, will be a seven-story structure totaling 136,000 square feet to be built on an approximately 3.24-acre parcel overlooking the Indian River.  

“Riverview is an exciting project for the City of Palm Bay, with a superb waterfront location,” said Jim Thompson, the chairman and CEO of Preston Hollow Capital. “Our origination team worked closely with the borrower and underwriter to craft a robust transaction structure.”

HHC Finance Secures $47 Million for Brooklyn SNF Sale

Housing & Healthcare Finance, LLC (HHC Finance) has announced the closing and funding of $46.8 million in acquisition financing to the founders of CareRite Centers for their purchase of The Phoenix Center for Rehabilitation and Nursing (formerly Atlantis Rehab Center), a 400-bed skilled nursing facility located in Brooklyn, N.Y.

The acquisition financing was comprised of a $41.6 million first mortgage and a $5.2 million mezzanine loan provided by HHC Finance. The overall financing package also included a $4 million accounts receivable line of credit. 

The Phoenix Center is an 11-story property that overlooks Fort Greene Park and is adjacent to Brooklyn Hospital. The facility provides short-term rehab, respiratory care, IV therapy, wound care, long-term health care and hospice care services. 

Written by Emily Study

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