Senior Housing Finance Activity: HJ Sims, Bellwether Enterprise

HJ Sims Provides Financing for Fla. Senior Rental Community 

HJ Sims, a privately held investment bank and brokerage firm, provided financing for a senior living residential rental community for seniors aged 55 and older located in Kissimmee, Fla.

Tuscan Isle is immediately adjacent to Solivita, a residential 55+ community with more than 7,000 residents. Tuscan Isle has a preliminary shared services agreement with AV Homes, the developer of Solivita.

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Tuscan Isle will be comprised of 120 independent living units, 56 assisted living units and 36 memory care units.

The independent living units will be housed in a four-story building, made up of one and two bedroom units ranging in size from 706 to 1,230 square feet. The assisted living units will consist of studios and one/two bedroom units ranging in size from 390 to 620 square feet. The memory care units will provide for 36 residents in private rooms.

“Residents will also be provided with therapeutic services; personal care assistance; medication assistance; meals and nutrition; life enrichment program; housekeeping/maintenance; and safety/security,” HJ Sims said in a statement. 
 
Memory care units at Tuscan Isle will feature a dining area, as well as activity and recreational space. The common area will offer space for dining, activities and more.

“Memory care will provide an activity focused therapeutic program for residents suffering from dementia, Alzheimer’s disease and other related disorders,” HJ Sims said. “The services provided in the memory care units will be similar to those of the assisted living units, but will offer specific therapeutic interventions to meet the needs of residents with dementia.”
 
The Tuscan Isle project began in January of 2015 and is currently under construction with a planned completion date in spring of 2016. Phase two of construction will incorporate a skilled nursing expansion.

Financed with both taxable and tax-exempt bonds, as well as preferred equity, the borrower benefited from a creative financing solution at attractive fixed rates.

Construction financing consisted of $40,645,000 tax-exempt bonds and $1,710,000 taxable bonds, making the total debt financing $42,355,000. The preferred equity consisted of taxable bonds for accredited investors, totaling $6,200,000.   

The owners of Tuscan Isle include: affiliates of Vieste Group, a program management and development services company from Chicago IL; HJ Sims Investments, an affiliate of HJ Sims; Life Care Services, one of the largest owner/operators of senior housing in the US; and Core Construction Group, a Florida-based construction company with extensive experience in designing and building senior communities.
 
“For this financing, we used our breadth of experience with tax-exempt and taxable bonds, as well as preferred equity, to arrive at the best financing structure for Tuscan Isle,” said Jeffrey Sands, managing principal of HJ Sims, in a statement. “The result was a financing that is an innovative solution that provides the community with an attractive cost of capital and the ability to easily expand.” 

Bellwether Enterprise Closes $12M FHA Loan to Refinance Ohio Senior Affordable Housing 

Bellwether Enterprise Real Estate Capital LLC (Bellwether Enterprise), the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc. (Enterprise), originated a $12 million loan with the Federal Housing Administration (FHA) for the refinancing of Winton Manor.

Owned by The Ferchill Group, the affordable property is located in Cleveland, Ohio and consists of 270 assisted rental units for seniors. The loan will preserve Section 8 affordability to Winton Manor residents for 30 years.   

The property was built originally in 1916 as the Hotel Winton and was renamed the Carter Hotel in 1931. Following a fire and subsequent vacancy, the building was converted in the 1980’s and completely renovated by The Ferchill Group in 2004 into affordable, Section 8 senior housing which is today known as Winton Manor.

Funding for the refinancing was provided through FHA’s 223(a)(7) loan program.

As a FHA approved Multifamily Accelerated Processing (MAP) lender and Ginnie Mae Issuer, Bellwether Enterprise specializes in serving the needs and fulfilling the mission of nonprofit and for-profit sponsors, developers and owners across the United States, the company said in a statement. 

“Winton Manor is a property with a unique history in the Cleveland community and we are pleased to contribute to its future by helping to ensure it remains an affordable, high-quality residence for years to come,” said Ross Halloran, senior vice president of Bellwether Enterprise, in a statement.    

Housing & Healthcare Finance Closes $76M in HUD Loans to Refinance 3 Calif. SNFs

Housing & Healthcare Finance (HHC Finance) closed $76.4 million in HUD 232/223(f) loans to refinance the conventional debt on three skilled nursing facilities located in California.  

The non-recourse, fixed rate HUD loans include $27.5 million for a 139-bed facility and $28.8 million for a 180-bed facility both of which are located Northern California.  

The third HUD loan was $20.1 million for a 163-bed facility in Southern California. 

The owner, which operates several skilled nursing facilities throughout the state of California, locked in low interest rates for 30 years on each of the facilities.

RED Capital Closes $14M Construction Loan for Utah AL, Memory Care Facility 

Capital Partners, LLC, the proprietary debt and equity banking arm of comprehensive capital provider RED Capital Group, LLC, completed a $13.86 million balance sheet construction loan to Link Development LLC.

The  loan is for the construction of Summit Senior Living, located in Kearns, Utah, just outside Salt Lake City.

The loan will support the construction of a two-story assisted living (AL) and memory care (MC) facility built on approximately 3.9 acres parcel. It will consist of 75 assisted living apartments as well as 32 specially designed memory care bed apartments.

Once completed, the community will be managed by Milestone Retirement Communities, LLC, located in Vancouver, Washington. Currently, Milestone manages over 29 communities in nine states.

Summit Senior Living is designed to cater to active seniors, those needing assistance with activities of daily living, and those with dementia or other memory loss. Summit Senior Living will be providing residents with a beautiful home-like environment and personal care services as needed.

Link Development, LLC, is an Oregon based company that specializes in developing assisted living centers and has ten projects across the west.

Seabold Construction, Inc, is the General Contractor on the $17.9 million project with a projected completion date of early March 2016.

Ankrom Moisan Architects are the architects on the project.

“This was a very complex deal and a great opportunity for RED to develop a new relationship with Ron Ziebart and Link Development,” said Kathryn Burton Gray, senior managing director for RED. “We look forward to working with him and his team on future projects.”

RED Capital Completes $9M Construction Loan for Colo. Memory Care Facility 

RED Capital Partners, LLC, the proprietary debt and equity banking arm of comprehensive capital provider RED Capital Group, LLC, recently completed an $8.8 million balance sheet construction loan to Milestone Retirement, the Crystal Group and Taylor Fitzpatrick Capital.

The loan is for the construction of Lakewood Memory Care, a class A development located in Lakewood, Colo., just outside of Denver.

The loan will support the construction of the one single story building containing 46 memory care units, with 52 beds (40 private studios and six semi-private studios). The general contractor for the project will be Brinkman Partners.

Pacific Northwest-based Milestone Retirement Communities, LLC, will manage and operate the memory care facility. 

“This was the first non-agency, non-recourse construction loan Milestone has closed on, and we were pleased to be one of RED’s first borrowers on this program,” said Paul W. Dendy, CEO of Milestone Retirement Communities, in a statement. “[…] RED is committed to this type of loan and has the capability to do more of them, which is important to us since we have a development pipeline in various stages of work. Our project will benefit from this loan structure and terms.”

KeyBank Arranges $94M Financing for N.Y. Seniors Housing Portfolio 

KeyBank Real Estate Capital provided $93.75 million in Fannie Mae loans to finance a portfolio of four assisted living communities on behalf of NorthStar Healthcare Income, Inc., a public, non-traded REIT.

NorthStar Healthcare acquired the 570-unit portfolio, located on Long Island, N.Y., in September of 2014.

The properties include The Arbors at Bohemia, The Arbors at Islandia, The Arbors at Hauppauge and The Arbors at Westbury, located in Jericho, N.Y., and are 100% leased to Arcadia Management, Inc.  

Monique Bimler of Key’s Healthcare Mortgage Banking Team arranged the financing for this investment. 

In addition, KeyBanc Capital Markets arranged a $100 million revolving credit facility for NorthStar Healthcare, with the option to upsize the facility through an accordion feature, up to $200 million. The facility is used to finance real estate investments and first mortgage loans secured by healthcare real estate. KeyBank National Association is the administrative agent.

Written by Cassandra Dowell

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