Senior Housing Finance Activity: CBRE Group, Silver Arch

Silver Arch Closes $4.75 Million Loan for Michigan Assisted Living Facility

Silver Arch Capital Partners, a New Jersey-based private lender to the commercial real estate market that specializes in alternative lending, closed a $4.75 million loan for Belle Oakes Living Center, an assisted living facility in Lake City, Michigan. The owners of the facility will use the loan to streamline operations and obtain conventional financing. Belle Oakes is a 48-unit, 32,000 square foot facility that rests on 20 acres.

“The borrowers needed to refinance an existing mortgage and pay off other debt related to a recent 11-unit expansion of the property,” Jeffrey Wolfer, president and CEO of Silver Arch, said in a prepared statement. “The facility’s operations have been improved and the cost structure has been lowered by the owners, resulting in a property that is currently performing at a high level, generating substantial net income.” 

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The Belle Oakes community was constructed in 2002 and renovated in 2012.

“The financing has allowed the borrowers to consolidate their debt and align debt service payments with cash flow,” Wolfer said. “The loan was very attractive because the borrowers have shown they are excellent operators. The assisted living/healthcare industry is in a high growth mode, which should be attractive to conventional takeout lenders.”

CBRE Group Finances Four Senior Housing Loans for $41.8 Million

CBRE Group, the world’s largest commercial real estate investment firm, announced it financed four loans totaling $41.8 million for senior housing properties operated by American House Senior Living in Bloomfield Hills, Michigan. The four facilities are located in Hazel Park, Pontiac and Clinton Township, Michigan. The facilities include a mix of 449 LIHTC affordable and market-rate apartments.

The loans are insured through the U.S. Department of Housing and Urban Development’s Section 221(d)(4) streamline refinance mortgage insurance program. The loans were originated by Jason Brown, vice president of CBRE Capital Markets’ Indianapolis office, in partnership with John Taylor, senior vice president of CBRE Capital Markets in Seattle.

Grandbridge Funds $13.7 Million Construction Loan for Virginia Assisted Living Facility

The Atlanta senior housing and health care finance team of Grandbridge Real Estate Capital, a North Carolina-based full-service commercial and multifamily loan provider, has provided a $13.7 million construction loan for The Crossings on the Peninsula in Yorktown, Virginia. The new facility will include 104 units over 860,000 square feet, comprising 68 assisted living residences and a 34-bed memory care wing called Harmony Square Town Center.

The facility’s planned amenities include a library, computer lab, on-sute fitness center, theater, pub, dining room, multi-purpose room, beauty shop, nursing/physician center and a swimming pool. 

The transaction was coordinated by Richard Thomas and Meredith Davis with Neal Lineberry from parent company BB&T on behalf of the borrower, Smith/Packett Med-Com LLC, based in Roanoke, Virginia.

Cambridge Arranges $15.8 Million Refinance Loan for Ottawa Pavilion

Cambridge Realty Capital Companies, a Chicago-based real estate capital provider, arranged a $15,867,000 HUD-insured refinance loan for Ottawa Pavilion, a 129-bed skilled care nursing facility located in Ottawa, Illinois. The loan is fully amortized with a 37.5-year term that was issued to the owner, an Illinois limited liability company, according to Cambridge Chairman Jeffrey Davis.

Cambridge Realty Capital Ltd. of Illinois—the Cambridge business that specializes in underwriting FHA-insured HUD loans—was the underwriter on the transaction.

Hawthorne Gardens Assisted Living Sells for $10.8 Million

Hawthorn Gardens Assisted Living, a assisted living and memory care facility located in Portland, Oregon, has been sold for $10.8 million. The sale was arranged by Marcus & Millichap, a commercial real estate services firm based in Chicago, Illinois.

Located in East Portland, Hawthorne Gardens was built in 2007 has 58 assisted living units and 84 memory care beds. At the time of sale the facility was 88% occupied. 

Dan Mahoney and Tony Cassie, directors of Marcus & Millichap’s National Seniors Housing Group in Portland, procured the buyer in the transaction and represented the sellers.  

Wells Fargo Provides $25 Million Loan for Boca Raton Development

Wells Fargo Bank announced it has provided a $25.08 million construction loan for Cobblestone Place, a senior living facility west of Boca Raton, Florida. Wells Fargo awarded the mortgage to CHH-GD Boca Raton Realty, a Florida affiliate of Capital Health Group, which is based in Baltimore. Capital Health Group is also part of a team building a senior living site in Fort Lauderdale. 

The construction loan will fund the development of a three-story, 173,312-sqaure-foot facility that will hold 168 beds and 164 parking spaces. The developer of the facility acquired a 6-acre site for $4.5 million in 2014. Plans for Cobblestone Place as a congregate living facility were approved in 2012. 

Written by Amy Baxter

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