Senior Housing Finance Activity: Berkadia, RED Capital

RED Capital Group Closes $11.1 Million Refinance for MBK Senior Living

RED Mortgage Capital, the proprietary mortgage banking arm of RED Capital Group, LLC, has closed an $11.1 million refinance loan for Chancellor Gardens of Clearfield, an MBK Senior Living-owned and operated community located in Clearfield, Utah.

“MBK was seeking a customized product for this project, and we are very happy with how smoothly the process went,” said Dan Hill, director of senior housing at RED, said in a news release. “We are particularly excited that we were able to close this complicated deal in the span of 43 days.”

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The facility consists of 130 units and offers assisted living and memory care. MBK owns and operates 13 assisted living and memory care communities across California, Utah, Arizona, Colorado and Washington.

Fannie Mae provided the capital for the loan.

Grandbridge, BB&T Fund $13.7 Million Refinance for Yorktown, Virginia Community

Grandbridge Real Estate Capital’s Atlanta-based Seniors Housing and Healthcare Finance Group, along with BB&T’s Lexington, Virginia-based commercial real estate department, have funded a $13.72 million loan for Smith/Packett Med-Com, LLC to construct The Crossings on the Peninsula in Yorktown, Virginia.

“In addition to their extensive senior living real estate experience, the lenders at BB&T and Grandbridge were excellent at keeping open communications channels between both construction (BB&T) and permanent (Grandbridge) lending and with the clients,” said Hunter D. Smith, Smith/Packett president and principal, in a prepared statement. “This enabled a smooth transaction and has prepared The Crossings on the Peninsula for success by executing on the construction/mini perm loan and by laying the ground work for the permanent financing.”

The facility is slated to consist of 68 assisted living residences and a 38-bed memory care neighborhood, which will be called Harmony Square Town Center. Like other Harmony Senior Services communities, The Crossings on the Peninsula will contain a library, a pub, a beauty shop and more.

Grandbridge’s Seniors Housing and Healthcare Finance Group provides construction, non recourse acquisition and permanent financing options to seniors housing owners across the country.

Berkadia Arranges 2 Loans Totaling $366.7 Million for 39 Seniors Housing Properties

Berkadia Commercial Mortgage LLC’s Seniors Housing and Healthcare Group has closed on two loans totaling $366.7 million for two portfolios consisting of 39 seniors housing properties for Brookdale Senior Living (NYSE: BKD), which will use the loans to refinance existing debt on the properties. The portfolios’ 39 properties are located in 17 states.

A $226.4 million, 10-year loan was secured through Berkadia’s Fannie Mae program for a 21-property portfolio, which has an average occupancy of 90.6%. Of the properties’ 1,924 units, 5.7% is independent living, 15.9% is memory care and 78.4% is assisted living.

An additional $140.3 million, seven-year loan through Berkadia’s Freddie Mac program was also arranged for an 18-property portfolio, which had an average occupancy of 87.8% at the time of closing. It consists of 1,190 units, including 22.9% memory care and 77.1% assisted living.

“Our team’s extensive experience working with seniors housing assets across the country allowed us to secure competitive loan terms for these expansive portfolios,” Berkadia managing director Heidi Brunet said in a news release. “We have a long-standing relationship with Brookdale Senior Living, and we leveraged our close insights into their long-term strategic goals, our strong ties with the GSEs and our experience in the sector to smoothly and effectively manage these transactions.”

Blue Moon Capital Partners Forms $55.9 Million Development Joint Venture

Blue Moon Capital Partners, a senior housing private equity investor, has closed on a $55.9 million development joint venture with affiliates Gerald H. Phipps, Inc. and Ascent Living Communities, a Rocky Mountain regional contractor and a senior living developer and operator, respectively.

The joint venture is meant to fund the development of The Village at Belmar, a 156-unit independent living, assisted living and memory care campus in Lakewood, Colorado. It is the second in a series of Blue Moon’s investments from its $175 million fund, Blue Moon Senior Housing I LP, which aims to provide capital to operators who will reopen existing communities and invest in the development of new facilities in joint ventures.

“We appreciate the partnership with the Blue Moon team,” said Tom Finley, founder and principal of Ascent Living Communities, in a news release. “In addition to the capital, Blue Moon brings extensive senior housing experience and a commitment to working with us to grow the Ascent platform.”

Ziegler Closes $44.5 Million Financing for Orchard Park, New York Facility

Ziegler Capital Markets, a specialty investment bank, has closed on $44.49 million in series 2015 bonds for Fox Run at Orchard Park, a not-for-profit located in Orchard Park, New York.

Fox Run is a life care community open to people age 62 and older and consists of 180 independent living units, 50 skilled nursing beds and 52 assisted living suites, including 18 dedicated to memory care.

The bonds have been issued to refinance outstanding debt that funded the construction of the original facility, finance or reimburse the costs of the 2015 equipment and pay all or a portion of costs related to the issuance of the bonds, including any reserve funds that might be necessary to secure the series 2015 bonds.

“With an improving bond market, Fox Run’s bonds were sold to more than 15 investment funds, providing Fox Run with significant net present value savings and annual debt service savings, strongly positioning the community for the future,” said Keith Robertson, managing director of Ziegler’s senior living practice, in a prepared statement. “It has been an honor to work so closely with Fox Run over the years, witnessing first-hand how they’ve addressed their challenges. I’m glad we were able to deliver such a positive result for the community with this refinancing.”

Senior Quality Lifestyles Corp. Secures $109.4 Million for Expansion of The Buckingham in Houston, Texas

Senior Quality Lifestyles Corp., a Texas-based nonprofit developer of senior living communities, has secured $109.38 million through the sale of series 2015 bonds for the expansion and renovation of The Buckingham in Houston, Texas.

The Buckingham is a continuing care retirement community (CCRC). The project is slated to provide resort-style living for nearly 200 additional residents.

Ziegler Capital Markets served as bond underwriter for the transaction.

CBRE National Senior Housing Completes $27.9 Million Loan for The Summit of Uptown in Park Ridge, Illinois

CBRE National Senior Housing, a subsidiary of CBRE Capital Markets, has arranged $27.9 million in acquisition financing on behalf of investment company Capitol Seniors Housing for The Summit of Uptown in Park Ridge, Illinois.

The financing entails a non-recourse floating rate bridge loan, including a five-year term with three years of interest only from a regional bank. Total loan proceeds include a loan of $21.7 million for the acquisition of the property, along with $4.2 million for planned capital improvements and a $2 million earnest feature.

The Summit of Uptown is a 147-unit independent and assisted living community. As part of the acquisition, CSH plans to convert about 28 independent living units to assisted living and renovate to include 16 memory care units. CSH will also retain The Arbor Company, an Atlanta-based owner/operator of independent living, to manage the property.

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

Lancaster Pollard Arranges Financing for Skilled Nursing in Atlanta, Seniors Housing in Bartlesville, Oklahoma

Lancaster Pollard, a financial advice and financing solutions company, has arranged $5.2 million in funding for the acquisition of Reliable Health & Rehab at Lakewood in Atlanta and $6.7 million in refinancing for Green Country Village in Bartlesville, Oklahoma.

Reliable Health & Rehab is a 100-bed skilled nursing facility that offers a full range of rehabilitation therapies. It was owned by a partnership and had an agreement to sell the facility to a predetermined buyer. The transaction was made possible through a taxable, fixed-rate loan insured by the Federal Housing Administration Sec. 232/223(f) program, allowing its current operator to stay in place. The loan carries a 35-year term.

Green Country Village is an unaffiliated 501(c)(3) seniors housing community consisting of 97 independent living units, 30 assisted living units and 28 memory care beds. Lancaster Pollard privately placed the $6.7 million tax-exempt loan with a regional bank to help the community refinance its debt more cost-effectively. The refinancing entails a fixed interest rate below 3.75%, making for more than $70,000 in annual savings.

Written by Kourtney Liepelt

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