Senior Housing Finance Activity: Prudential Mortgage, Ziegler

Prudential Mortgage Refinances $41M For Md. Senior Living Community 

Prudential Mortgage Capital Company provided a $41 million loan to Fountain Square Properties to refinance Kensington Park, a class A independent, assisted and memory care community located in Kensington, Md.  

Prudential Mortgage Capital Company is the commercial mortgage lending business of Prudential Financial, Inc. (NYSE: PRU).

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Tom Goodsite, a managing director, and Trace Wilson, an associate, were the leads on the transaction.

The $41 million loan for Kensington Park was originated through Freddie Mac’s Senior Housing program. The property consists of 61 independent living units, 52 assisted living units and 51 memory care units and is situated on more than eight acres, just north of the I- 495 Beltway in Montgomery County, Md.  

Kensington Park is managed by an affiliate of its owner, Fountain Square Properties.

Ziegler Closes $6.6M Financing For Calif. Nonprofit Retirement Home

Specialty investment bank Ziegler closed $6,360,000 BBB+ (Fitch) rated, Tax-Exempt Series 2015A and $275,000 Taxable Series 2015B Bonds (collectively the Bonds) for the Aldersly Garden Retirement Community. Aldersly is a California not-for-profit corporation founded and incorporated in 1921 by Danish organizations as a retirement home serving the Danish-American communities in California and Nevada.

Aldersly Garden Retirement Community is a long-standing Ziegler client with Ziegler serving as sole underwriter on the Series 2002 Bonds, Ziegler said in a statement.

“The community has for many years welcomed anyone who meets its financial and other admission criteria,” Ziegler said. “Aldersly is dedicated to serving the needs of its senior residents in the Danish tradition and spirit of respecting and caring for the elderly. The name Aldersly means ‘shelter for the aging.’”

Aldersly will use the proceeds of the sale of the Bonds and other available funds to refund the  outstanding Series 2002 Bonds; finance or reimburse the costs of constructing, renovating, remodeling and equipping the facilities at Aldersly; fund a debt service reserve fund for the Series 2015A Bonds; pay the remaining balance of the Help II Loan; and pay certain costs of issuance.

The 2015 Bonds were structured to extend the existing final maturity from 2032 to 2040, creating capacity to fund $1.7 million in new money without increasing annual debt service. 

“As a group, we set out on an aggressive timeline to capitalize on historically low fixed interest rates and managed to sustain that goal while maximizing Aldersly’s rating outcome with an initial bond rating of BBB+ from Fitch Ratings,” said Sarkis Garabedian, senior vice president in Ziegler’s senior living practice. “Through these successes we were able to deliver significant debt service savings and additional funds to Aldersly for capital improvements without increasing annual debt service.”

AdCare Completes $21M Refinancing For Ark., S.C. Health Care Facilities 

AdCare Health Systems, Inc. (NYSE MKT: ADK), (NYSE MKT: ADK.PRA), a long-term care provider, announced its refinancing agreement for properties in Arkansas and South Carolina. 

The third-party mortgage refinancing agreement, which includes long-term refinancing of approximately $21 million of mortgage debt with more favorable terms and an extended maturity date, is associated with the company’s Northridge Health Care, Woodland Hills Health Care and Cumberland Healthcare nursing facilities, each located in Arkansas, and the company’s Georgetown Healthcare and Rehabilitation and Sumter Valley Nursing and Rehab Center, each located in South Carolina.

The Arkansas Mortgage Facility and the South Carolina Mortgage Facility are guaranteed by AdCare Health Systems, Inc. and are secured by a first-priority security interest in favor of the lender in the Arkansas Properties and the South Carolina Properties, respectively, and all other assets of the company’s subsidiaries which own such properties.

Lancaster Pollard Closes Over $141M In Senior Housing Transactions 

In February, Lancaster Pollard closed 18 seniors housing transactions totaling over $141 million.

Nine of those transactions were note modifications of existing FHA Sec. 232 loans that resulted in an overall average interest rate reduction of 9% or 43 basis points. Five of the transactions were balance sheet loans totaling $31 million via Lancaster Pollard’s Finance Company helmed by Doug Korey.

The firm also closed a buy-side M&A deal totaling $22 million for a skilled nursing facility in the Northeast and served as an advisor on a $5.5 million USDA Business and Industry transaction for an assisted living facility in Utah.

CBRE Secures $18.5M Loan For Calif. Assisted Living, Memory Care Community 

CBRE National Senior Housing arranged financing on behalf of The Carlyle Group (NASDAQ: CG) for The Arbors at Rancho Penasquitos. The property is an 87-unit assisted living/memory care community located in San Diego, Calif. 

CBRE secured an $18.5 million non-recourse floating rate bridge loan which includes a five-year term with 24 months interest only and an “all-in” interest rate today of approximately 2.9%. The loan was procured from a regional bank.

The property has been operated by Integral Senior Living since 2005. The community was built in 1988 as age-restricted apartments and was converted to assisted living in 1998. Carlyle plans to cosmetically renovate/upgrade the property’s common areas and units and is well positioned to experience continued success within the San Diego marketplace. 

Aron Will, Executive Vice President of CBRE National Senior Housing, arranged the financing.

Berkeley Point Capital Facilitates $24M Acquisition Loan for Utah Assisted Living, Dementia Community

Berkeley Point Capital closed a $24.2 million Freddie Mac seven-year fixed rate term loan with an interest only period for ROC Seniors Housing Fund Manager, LLC. ROC Seniors is a subsidiary of Bridge Investment Group Partners, LLC.  

The loan facilitated ROC Seniors purchase of Courtyard at Jamestown, a 132-unit assisted living and dementia care seniors housing community located in Provo, Utah that opened in 1999. Courtyard at Jamestown is located in the northern portion of Provo, approximately three miles north of the central business district of Provo, and two miles north of the campus of Brigham Young University.  In addition, the community is located within minutes of the Utah Valley Regional 

Doug Harper, director, led the Berkeley Point Capital team to structure the Freddie Mac financing.

“Closing the loan in less than 45 days from engagement was critical, and we thank the team at ROC Seniors and our partners at Freddie Mac for enabling us to achieve this,” Harper said in a statement.

CBRE Secures $19M Loan For Texas Assisted Living, Memory Care Community 

CBRE National Senior Housing arranged financing on behalf of a joint venture between Bridgewood Property Company and Harrison Street Real Estate Capital for The Village of Meyerland. The property is a class “A” 121-unit assisted living/memory care community located in Houston, Texas. 

CBRE secured a $19 million non-recourse floating rate bridge loan which includes a five-year term with 24 months interest only and an “all-in” interest rate today of approximately 2.35%. The loan was procured from a regional bank. 

The property has been managed by Brookdale Senior Living since inception. Brookdale is the nation’s largest senior living provider currently operating a portfolio of 647 communities consisting of 66,000+ units across 36 states. Additionally, Brookdale operates 28 communities in the Houston MSA. 

Bridgewood is a developer of high-quality, culturally enriched senior living communities. Harrison Street is a real estate private equity firm founded in 2005 that directly and through its affiliates, has approximately $7.3 billion in assets under management (AUM) through commingled funds and public securities products.  

Aron Will, Executive Vice President of CBRE National Senior Housing, arranged the financing.

Capital One Closes $15.5M Acquisition Loan For Texas CCRC

Capital One Bank provided a $15.5 million term loan to finance the acquisition of Meadow Lake, a continuing care retirement community (CCRC) in Tyler, Texas.

The borrower, a partnership between Evergreen Senior Living Properties LLC, its management affiliate ESLP Management LLC, and RSF Partners, acquired the property through a bankruptcy auction.

RSF has invested more than $500 million in commercial real estate with a special focus on senior living facilities. Evergreen and RSF are repeat clients for Capital One Bank, which provided financing for a similar acquisition in 2012. 

Capital One closed the transaction quickly to allow the borrower to acquire the property within five weeks of the auction.

Located on 95 acres, Meadow Lake opened in 2011 and consists of 117 independent living units, 20 assisted living units, 34 memory care units and 30 skilled nursing beds. It also includes 20 fully improved lots for additional independent living cottages as well as undeveloped land that could accommodate an additional 88 cottages.

KeyBank Arranges $27M Financing For Texas Long-Term Care Portfolio 

KeyBank Real Estate Capital arranged a total of $26.65 million in FHA financing for a three-property long-term care portfolio in Texas.

Two of the properties are skilled nursing facilities and one is a combination skilled nursing and assisted living facility. The properties were built in the 1990s and have a combined total of 250 units and 418 beds.

Allison Holland of Key’s Healthcare Mortgage Banking Team arranged the non-recourse, fixed rate first mortgages for all three properties. 

The portfolio is comprised of Hill Country Rehab and Nursing Center, located in Copperas Cove, Texas; Indian Oaks Living Center, located in Harker Heights, Texas; and The Rosewood Retirement Community, located in Killeen, Texas.

CBRE Arranges X Acquisition Financing For Wash. Assisted Living Community 

CBRE National Senior Housing arranged acquisition financing on behalf of Auctus Capital Partners for Ballard Manor, an assisted living community located in Ballard, Wash. (Seattle MSA).  

Aron Will, executive vice president of CBRE National Senior Housing arranged the acquisition financing. CBRE secured a floating rate loan from a regional bank. Auctus has retained Seattle-based Leisure Care to third party manage.

Auctus plans to spend a substantial amount of capex renovating and upgrading the property’s interior and exterior in order to meet resident expectations within the affluent marketplace. Upon completion, the property will contain 80 units post renovation. 

Chris Rosenstock recently founded Auctus to acquire, turnaround, and asset manage senior housing communities in the western U.S. To date, Auctus has acquired two properties in the Seattle MSA.  

Written by Cassandra Dowell

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