Senior Housing Finance Activity: Health Care REIT, CBRE

Health Care REIT Purchases $56.7 Million Fort Collins Complex 

Health Care REIT (NYSE: HCN) purchased a senior living complex in southeast Fort Collins, Colorado for $56,740,000. The Ohio-based REIT bought the property, MacKenzie Place on Aug. 31, marking its eighth senior housing purchase in Colorado.

The property is located at 4750 Pleasant Oak Drive and has been open since 2008, offering assisted living, independent living and memory care for adults 55 and older. MacKenzie Place is currently managed by Leisure Care, a Seattle-based hospital company. The property was purchased from LB-MH Oakridge LLC, which held the asset since 2006. 

The REIT also owns two outpatient medical centers and two rehabilitation centers in Colorado after acquiring the Powerback Rehabilitation Center in Lafayette for $21.6 million, Coloradan reported. 

Berkadia Arranges $10 Million Financing for San Diego Affordable Seniors Housing Property

Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corporation that provides real estate capital for multifamily and commercial properties, arranged a $10 million loan for Grace Tower, an affordable senior housing property in San Diego.

The loan was secured through HUD’s Section 221(d)(4) program with a 40-year, fixed-rate term and closed by Senior Director Mike Kulick of the Pasadena office.

The prpoerty is one of 12 selected by the Department of Housing and Urban Development (HUD) to receive Senior Preservation Rental Assisted Contract (SPRAC) funding, which provides assistance for eligible senior housing residents to prevent displacement among unassisted income-eligible seniors living in Section 202 Direct Loan projects.

“Our team was pleased to partner with the borrower on this unique deal using HUD’s SPRAC funding,” Kulick said in a prepared statement. “We leveraged our extensive experience in the affordable housing sector and our long-standing relationship with HUD to close this financing with attractive terms.”

The borrower on the financing is Grace Tower Inc., a California non-profit entity. The funds will be used for construction financing for a “substantial renovation” over 12 months. The property was built in 1967 and consists of 168 units featuring studio and one-bedroom floor plans. It is currently fully occupied. Section 8 project-based rental assistance will continue for 20 units. 

SLIB Arranges $18.3 Million Sale-Leaseback of Georgia AL Facility

Senior Living Investment Brokerage (SLIB) arranged a sale-leaseback deal for an 84-unit assisted living facility in Cumming, Georgia, for $18.3 million.

The facility, The Oaks at Hampton, was purchased by Senior Housing Properties Trust (NYSE: SNH), a publicly-traded senior housing REIT with corporate offices in Newton, Massachusetts. Oaks Senior Living, the seller of the property, will remain as operator of the facility. 

The SLIB transaction was handled by Bradley Clousing and Jeff Binder.

Reliant Management Group Purchases Northgate Skilled Nursing

Reliant Management Group, LLC, purchased a 52-bed skilled nursing facility in San Rafael, California, for $4,525,000 from Northgate Care Center. The property was previously owned by Meridian Foresight Management. The sale was facilitated by Shep Roylance, senior vice president of JHC Consulting Group, who also recently represented Reliant Management Group in the acquisition of two skilled nursing facilities in California.

The deal was structured as a lease purchase and paid as a combination of cash, a new loan and the assumption of Meridian’s QA feel liability from Northgate. 

Reliant Management Group took over the operations of Northgate and is moving to close of the real estate. 

Meridian has completed the divesting of its skilled nursing facilities over recent months, holding onto Shasts View Nursing Center. The acquisition of Northgate increases the presence of Reliant Management in Northern California. 

“I am excited to be a part of Reliant Management Group, LLC skilled nursing and hospice growth strategy throughout Northern and Southern California,” Roylance said in a prepared statement.

CBRE Arranges Construction Financing for Colorado CCRC

CBRE National Senior Housing arranged financing for a joint venture between Blue Moon Capital Partners Ascent Living Communities and GH Phipps Construction Companies for the construction of a 156-unit rental continuing care retirement community in Lakewood, Colorado. The financing was arranged by Aron Will, executive vice president of CBRE National Senior Housing. 

Blue Moon is a private equity investment advisor that engages in the development of high-quality senior housing communities. Phipps is a privately owned construction company that serves throughout Colorado. 

The property, the Village at Belmar, is to be built on a 7.6-acre site and will be managed by Ascent, a senior housing developer and owner/operator that spans from Denver to the West Coast.

The facility will be a three-story building with 72 assisted living units and 24 memory care units across approximately 83,000 square feet. Sixty independent living units will be built in 15 quadplex buildings that are approximately 107,000 square feet on a secure campus.

CBRE secured a 65% LTC, $36.3 million, 5-year floating rate construction loan with limited recourse that features 36 months interest only.

CBRE completed more than $2 billion in combined senior housing investment sales and loan originations in 2014.  

Love Funding Closes $8.6 Million Refinancing for Michigan Age-Restricted Communities

Love Funding, a national provider of FHA multifamily, affordable and healthcare financing, closed three loans totaling $8.59 million to refinance debt on three Section 8, age-restricted apartment communities in Haslett, Michigan. 

Bruce Gerhart, Love Funding midwest regional director, secured the loans through the U.S. Department of Housing and Urban Development’s 223(f) loan insurance program.

The three communities are part of the same development called Grange Acres and boast 363 apartment units combined for low-income residents who are 62 and older. The communities were built between 1972 and 1982 in different phases and underwent extensive renovations in 2009 and 2010. Proceeds from the loans will be used for repairs and to fund replacement services. 

First Housing Corporation manages the communities, while Grange Acres Non-Profit Housing Corporation is the owner of the properties.

CBRE Arranges $12 Million Loan for California Community 

CBRE National Senior Housing arranged refinancing for a 100-unit independent living community in Carmichael, California. The property, Winding Commons, is owned by Ray Stone Inc. (RSI), a Sacramento-based commercial real estate management and property investment brokerage.

Aron Will, executive vice president of CBRE National Senior Housing, and Kevin Randles, senior vice president of CBRE’s debt and structured finance office in Sacramento, arranged the financing on behalf of RSI. CBRE Multifamily Capital originated a $12 million, fixed-rate loan from Fannie Mae.

RSI will continue to manage the property, which it has been operating since 2003. Winding Commons has held an average occupancy greater than the market over the last 24 months, according to a statement from CBRE. 

RSI operates 5 other senior living communities in California, comprising over 800 units. 

Written by Amy Baxter