Senior Housing Finance Activity: Love Funding, CNL Healthcare Properties

Love Funding Secures $13.6M Refinancing For Calif. Affordable Senior Housing 

Love Funding closed a $13.6 million refinancing loan for Sunset Normandie Towers, a 148-unit Section 8 senior living facility in Los Angeles, Calif.

The financing was secured by Senior Director Artin Anvar of Love Funding’s Washington, D.C. office through the U.S. Department of Housing and Urban Development’s Section 223(f) loan insurance program.

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“Using the program enabled the borrower to lock in a low, fixed interest rate and allowed Sunset Normandie to take a significant amount of equity from the loan,” Love Funding said in a statement.

Sunset Normandie Towers has completed several improvements since its construction in 1979, and remains one of the few affordable multifamily properties in the East Hollywood market. The current wait period for a unit in the property is 4.5 years. 

“Extending this loan with a low long term fixed rate allows for the flexibility needed to make additional improvements,” Anvar said. “With little development of multifamily properties in the East Hollywood market over the last decade, preserving this property is important, especially to seniors in need of affordable housing.” 

Sunset Normandie Towers has been managed by SK Management Company for 24 years. The company’s executives have significant experience in managing and preserving subsidized housing.

Grandbridge Facilitates $6M For Texas Seniors Housing Acquisition

The Atlanta-based Seniors Housing and Healthcare Finance team of Grandbridge Real Estate Capital closed a $6 million loan secured by Acadia Assisted Living, an 88-unit seniors housing community located in Dallas, Texas.

Funding for the acquisition loan was provided through BB&T Real Estate Funding’s Structured Loan Program, Grandbridge’s exclusive balance sheet lending platform focused on interim bridge first mortgage and construction loans.

Senior Vice President Richard Thomas and Vice President Meredith Davis originated the transaction.

Capital One Bank Closes $29M FHA Loan To Refinance 4 Calif. SNFs

Capital One Multifamily Finance provided $29.1 million in fixed-rate, HUD 232/223(f) loans to refinance four skilled nursing facilities in the Los Angeles area for a single owner.

The loans include $8.6 million for a 98-bed facility and $6.6 million for a 75-bed facility, both in San Gabriel, $7.7 million for a 107-bed facility in Highland Park, and $6.2 million for a 97-bed facility in Alhambra.

Senior Vice President Joshua Rosen originated the transaction. Rosen leads Capital One’s agency healthcare lending from the company’s Chicago office. 

The owners are among the largest providers of skilled nursing facilities in California, and purchased the four facilities using bridge financing in 2013. They turned to HUD financing for the opportunity to lock in current low interest rates for the long term; the loans have terms of between 30 and 33 years.  

“The 232/223 (f) loan program gives investors an unprecedented opportunity to increase revenue by locking in today’s historic rates for decades to come,” Rosen said in a statement, adding that the 232/223 (f) program offers an attractive loan–to-value ratio, and eligible loans are nonrecourse and fully assumable. 

Rosen and his team completed the four transactions simultaneously.  

“As the population ages, we believe that there will be increasing interest in FHA financing for skilled nursing facilities,” Rosen said.  

Berkeley Point Capital Executes $16M For Mass. Assisted Living, Memory Care Facility  

Berkeley Point closed a $16.2 million Freddie Mac seven-year floating rate term loan for Atria Senior Living and its partners. The loan refinanced existing first mortgage debt due to Mass Housing and facilitated the buyout of its tax credit equity partner.

Atria Maplewood Place is a 98-unit assisted living and memory care community located in the Boston suburb of Malden, Mass. The community is located about 20 minutes from downtown Boston and is close to many conveniences such as shopping, the theater, movies and Revere Beach. 

Atria Maplewood Place is operated by Atria Senior Living.

“Atria Maplewood Place also provides an important affordable living component for seniors in this market whereby 20% of the units are dedicated to residents whose income does not exceed 50% of area median income,” Berkeley Point Capital said in a statement, adding that the community has been serving residents since 1998.

Doug Harper, director, who led the Berkeley Point Capital team to structure the Freddie Mac financing said: “The Freddie Mac floating rate loan provided the financing capital needed and captured today’s very attractive floating interest rate environment. At the same time, it also provided the flexibility Atria Senior Living and their partners desired.”

Credit Value Partners, LP Provides $26.5M Financing to Pali Corporation, Nuuanu Hale Convalescent Hospital, and Liliha Healthcare Center

Credit Value Partners, LP, as agent for funds and accounts under its management (CVP), closed a $25 million senior secured term loan and a $1.5 million revolving line of credit with Pali Corporation, Nuuanu Hale Convalescent Hospital, and Liliha Healthcare Center (Pali).

CVP is a registered investment advisor specializing in corporate debt investments.

Proceeds of the loans are being used to refinance the company’s existing debt and for ongoing working capital to support two skilled nursing facilities in Hawaii.

“This loan highlights the strength of CVP’s direct lending platform and the depth of our firm’s healthcare expertise,” said Don Pollard, managing partner for Credit Value Partners, LP.

“The CVP deal team of Michael Keller and Robert Gittrich exhibited a thorough understanding of the healthcare industry and were able to execute in a timely and thoughtful manner,” said Dr. Edison H. Miyawaki, president of Pali Corporation.

RedRidge Finance Group served as an advisor to CVP on this transaction, while James Lewin of 
Financial Asset Capital Corporation acted as advisor to Pali Corporation.

Capital One Closes $52M Loan To Refinance Conn. CCRC

Capital One served as lead and administrative agent for a $52 million senior secured term loan to refinance Evergreen Woods, a continuing care retirement community (CCRC) in North Branford, Conn. 

The facility is jointly owned by The Shelter Group, a privately held real estate development and property management company specializing in multifamily and senior living communities, and affiliates of Herbert J. Sims & Co., an investment bank focused primarily on the senior housing industry. First Niagara participated in the loan.   

“We tailored a structure that meets the sponsor’s unique needs while setting the stage for a more comprehensive banking relationship that will benefit the community for years to come,” said Scott Rossbach, director of Capital One Bank, in a statement.

The financial covenants and repayment structure will allow for significant capital improvements to the property throughout the term of the loan.

Located approximately nine miles from New Haven, Evergreen Woods consists of 227 independent living units, 22 assisted living units, and 50 skilled nursing beds. This facility is an entrance-fee based community that offers residents a full continuum of care.

Evergreen Woods is managed by Brightview Senior Living, an affiliate of The Shelter Group with 30 senior housing facilities throughout the Northeast and Mid-Atlantic.

“We are proud to support the capital improvement of this vitally important facility in the community,” said Matthew Huber, senior vice president and Senior Director, Healthcare Group at First Niagara.  

Walker & Dunlop Provides $20M Financing For Ill. AL, Memory Care Facility 

Walker & Dunlop, Inc. closed a $20,000,000 loan for the refinance of Cottages of New Lenox, a 80-unit, 100-bed, assisted living and memory care facility located in New Lenox, Ill.

The refinance loan was structured with three-years interest only using Walker & Dunlop’s interim loan program. The borrower is an affiliate of a joint venture between Chicago based Focus Healthcare Partners, LLC and Artemis Real Estate Partners, LLC.

John Pantone, Chicago-based senior vice president, led the Walker & Dunlop team that structured the refinance loan.

“Cottages of New Lenox is a prime example of Walker & Dunlop’s objective in creating a bridge lending program to allow strong sponsors like Focus and Artemis to build occupancy and revenue momentum with their properties, while keeping their long-term financial objectives in mind,” Pantone said in a statement.

This is the second transaction that the Focus/Artemis joint venture has completed through Walker & Dunlop’s interim loan program.

Since acquiring Cottages of Lenox in 2012, the sponsor expanded the property’s memory care capacity to capture more of the market demand for high quality memory care and increased the allowable density by obtaining a zoning amendment allowing up to 100 beds. Additionally, the sponsor increased occupancy, improved operations and hired a new management company to oversee the property.

Located 42 miles southwest of Chicago, Ill., Cottages of New Lenox offers five stand-alone 20-resident cottages, including one building that provides dedicated assisted living.

Additional amenities include personalized care, health care coordination, chef prepared meals, housekeeping, and secure courtyards while offering a home-like community and atmosphere.  

CNL Healthcare Properties Increases Credit Availability For Growing REIT Portfolio 

CNL Healthcare Properties has entered into a $405 million unsecured credit facility and term loan, which can be expanded to $700 million. 

CNL Healthcare Properties is a real estate investment trust (REIT) focused on senior housing and healthcare properties.

The new credit facility, led by KeyBank National Association, has nine other participating lenders, 
including JPMorgan Chase Bank, SunTrust Bank, Bank of America, Compass Bank, Fifth Third Bank, 
Cadence Bank, Comerica Bank, The Huntington National Bank, and Seaside National Bank & Trust. 

“These new credit facilities represent a significant milestone in the growth and maturation of CNL 
Healthcare Properties’ business and signifies a great level of confidence in our company and strategy,” 
said Stephen H. Mauldin, president and CEO of CNL Healthcare Properties, in a statement. “Our previous secured corporate line of credit helped us substantially and rapidly grow our senior housing and healthcare holdings and these new facilities will further assist us in taking advantage of investment opportunities as we continue to build and diversify the REIT.” 

As of Dec. 31, 2014, CNL Healthcare Properties owned 55 senior housing communities and 45 healthcare properties. 

NHI Closes $154M Loan For Wash. Entrance-Fee Senior Housing Community

National Health Investors (NYSE: NHI) finalized a previously disclosed agreement to lend up to $154.5 million to recapitalize and finance the expansion of Timber Ridge at Talus, an entrance-fee senior living community in Issaquah, Wash.

Serving the greater Seattle area, Timber Ridge at Talus is currently 95% occupied and the new expansion is over 80% presold. The existing campus was built in 2008 and has 184 independent living apartments and 36 transitional care beds.

Expansion construction is expected to begin upon closing and to add 145 independent living apartments, 26 assisted living/memory care apartments and 9 transitional care beds, in addition to a swimming pool, dining room, fitness center and other amenities. 

“This Class A community is managed by Life Care Services, a Life Care Companies subsidiary which is one of the most respected, experienced and largest operators of continuing care retirement communities,” said Justin Hutchens, NHI’s CEO and president, in a statement. 

The borrower is a joint venture between Westminster Capital and Life Care Holdings, LLC.

The loan is divided into two notes under one master credit agreement. The $60 million senior loan (Note A) has a 10-year maturity and 6.75% interest rate that escalates 10 basis points per year after the third year of the loan. The $94.5 million construction loan (Note B) has a 5-year maturity and an 8% interest rate.

NHI funded an initial amount of $33.1 million on Note A at closing, and the remaining loan commitment is expected to be funded over the next 20 months. This loan was funded from borrowings on NHI’s revolving credit facility.

CBRE Provides $19M Acquisition Financing for Calif. IL, AL Community

CBRE’s Senior Housing Debt & Structured Finance practice arranged acquisition financing on behalf of The Carlyle Group for Newport Beach Plaza, a 111-unit independent/assisted living community located in Newport Beach, Calif. (Orange County; Los Angeles MSA). 

Aron Will, executive vice president of CBRE’s Senior Housing Debt & Structured Finance practice arranged the acquisition financing.

CBRE secured an $18.75 million non-recourse floating rate bridge loan which includes a three-year term with 24 months interest only and an “all-in” interest rate today of approximately 2.9%. The loan was procured from a national bank.

The property will continue to be operated by Leisure Care. The community was purpose-built in 1991 for assisted living and memory care.

Due to increased demand within the market, Carlyle plans to cosmetically renovate/upgrade the property’s common areas and units to bring it up to the standard of the high-quality competitors in Newport Beach/Huntington Beach/Corona del Mar. 

Headquartered in Washington D.C., Carlyle (NASDAQ: CG) is a global alternative asset manager with $203 billion of assets under management.

Cambridge Realty Capital Arranges $10M Loan To Refinance 4 Okla. Senior Housing Facilities 

Cambridge Realty Capital Companies arranged a $10.3 million conventional loan to refinance four Oklahoma facilities: the Heartsworth Center for Nursing & Rehab and Heartsworth House Assisted & Independent Living in Vinita, and the North County Center for Nursing & Rehab and North County Assisted Living in Collinsville, OK.  

The short-term conventional loan was arranged for related entities of the Diakonos Group which owns all four facilities, said Jeffrey A. Davis, Cambridge Chairman, in a statement. Underwriting the transaction was Cambridge Realty Capital.  

Together, the four facilities consist of 265 licensed skilled nursing beds, 65 assisted living beds and 50 unlicensed independent living units.

Cambridge Arranges $29M Loan To Refinance Calif. AL Facility 

Cambridge Realty Capital Companies arranged a $28,880,000 HUD Lean loan to refinance Regency Park Fair Oaks, an assisted living facility located in Pasadena, Calif.

The fully-amortized, 33-year loan was arranged for the owner, a California limited liability company, using the HUD Section 232 pursuant to Section 223(f) funding program, said Hymie Barber, the national originations manager for Cambridge and the managing director of Catalyst/Cambridge Health Care Finance in Los Angeles.

Underwriting the transaction was Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-insured HUD loans.  

Regency Park Fair Oaks is a 130-bed senior assisted living facility. It provides a range of services and amenities, including dining and regular activities.

Written by Cassandra Dowell

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