Senior Housing Finance Activity: NorthMarq, Oak Grove Capital

HJ Sims Arranges $22.5M Refinancing for Md. CCRC

HJ Sims provided a bank refinance for a continuing care retirement community (CCRC) in Annapolis, Md. 

The CCRC had a securitized $17 million mortgage that did not allow a prepayment, according to The SeniorCare Investor.

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HJ Sims arranged through a local bank a new $16.5 million mortgage with a 30-year amortization that refinanced the outstanding mortgage and developer loan, a $5 million draw-down facility for capital improvements and a $1 million working capital line of credit.

The new taxable mortgage reduced the interest rate by over 100 basis points while fixing it for 10 years, and lowered annual debt service by $165,000. 

NorthMarq Capital Arranges $25M Refinance Loan for Kansas Senior Housing Property 

NorthMarq Capital’s Kansas City based regional office arranged the $24.99 million refinance of The Atriums, a 203 unit, senior housing property in Overland Park, Kansas.

Greg Duvall, senior vice president and managing director of NorthMarq Capital’s Kansas City based regional office, arranged the transaction.

The transaction was structured with a seven-year term and 30-year amortization schedule.

NorthMarq arranged financing for the borrower through its seller-servicer relationship with Freddie Mac. 

“This was a refinance of an existing Freddie Mac portfolio loan,” Duvall said in a release. “Freddie Mac provided the borrower with a seven-year ARM loan. The borrower had a need for a partial release of the subject collateral that would occur at a later date and Freddie was able to incorporate language to allow this into the loan documents.”

Oak Grove Capital Closes 7 Senior Housing Loans Totaling $50.9M

  • Oak Grove Capital arranged a $18.2 million FHA loan modification for TowerLight Senior Living, a 113-unit complex located in St. Louis Park, Minn. The loan modification was facilitated by Ken Dayton, managing director at Oak Grove Capital. Amenities include an intergenerational child and elderly care program, fitness center, beauty salon, library and game room, gourmet kitchen, reflection room, club room, theater and an arts and craft room.
  • Oak Grove Capital arranged a $8,270,000 FHA refinance loan for a seniors housing property in Billings, Mont. The property has 179 units. Michael Leonard facilitated the transaction.
  • Oak Grove Capital arranged a $6,225,700 FHA refinance loan for Whispering Pines Nursing and Rehab Center in Fayetteville N.C. The facility has 63 units. Joel Mendes facilitated the transaction.
  • Oak Grove Capital arranged a $5,602,014 FHA loan modification for Care-Age of Brookfield, a 75-unit facility located in Brookfield, Wis. Gary Marchiori facilitated the transaction.
  • Oak Grove Capital arranged a $4,454,598 FHA loan modification for Hales Corner Care Center, a 53-unit senior housing community in Hales Corners, Wis. Gary Marchiori facilitated the transaction.
  • Oak Grove Capital arranged a $4,200,000 Fannie Mae supplemental loan for Abbotswood at Irving Park Supplemental, a 175-unit community located in Greensboro, N.C. Bill Kauffman facilitated the transaction.
  • Oak Grove Capital arranged a $3,917,500 FHA refinance loan  for Bayview Nursing and Rehabilitation Center, a 50-unit facility located in New Bern, N.C. Joel Mendes led the transaction.

RED Capital Partners Completes $36.5M Acquisition Loan for N.Y. Rehab Center  

RED Capital Partners, LLC, the proprietary debt and equity banking arm of comprehensive capital provider RED Capital Group, LLC, recently completed a $36.5 million balance sheet acquisition loan to Investment360 for the acquisition of James Square Health and Rehabilitation Centre in Syracuse, NY.

RED Capital Partners provided a high-leverage bridge loan to an FHA refinance in this transaction.

James Square is a 440-bed skilled nursing facility located in Syracuse, NY. Excelerate Healthcare will operate the facility as part of a long-term lease agreement with Investment360.

Investment360 gained control of the facility several years ago and brought in Excelerate Healthcare to improve census and quality mix prior to taking ownership, the company said in a release. 

“Investment360 and Excelerate will bring needed changes to what has historically been a challenged facility in the Syracuse community,” said James Scribner, managing director for RED. “They have already improved the facility’s reputation and care.”

BB&T Closes $33M Construction Loan for Ga. Senior Housing Community 

Branch Banking & Trust Company (“BB&T”) closed a $33,220,500 first mortgage construction loan secured by the Sterling Estates of West Cobb community in Marietta, Ga.

Senior Vice Presidents Neal Pickens and Peter Morelli of BB&T’s Atlanta Commercial Real Estate Group  originated the transaction.  

Construction began in May of 2015 and the community expects to be open in the summer of 2016. Funding for the project was provided through a traditional on balance sheet construction loan.

The loan has a LIBOR based floating rate with a seven-year term and multi-year interest only period to  accommodate the construction and lease up period.  
 
Located in Marietta, Ga. 30064, the 25 acre senior living community will have a total of 190 living units comprised of 58 cottages and garden homes for couples or individuals, two 21 unit Independent Living  apartment buildings for couples or individuals and a 90 unit, 100,000 sq. ft. assisted living building featuring studio, one and two bedroom units, two large dining areas, a 6500 sq. ft. wellness center with an indoor, heated salt water aerobic pool for exercise and therapeutic purposes.

There will be walking paths throughout the 25 acre community with parks and green space. A multifunctional clubhouse will be built on the grounds as well that will serve the residents and for community wide functions as well.

Written by Cassandra Dowell

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