Senior Housing Finance Activity: SQLC Surpasses $1 Billion in Financing

Senior Quality Lifestyles Corporation Surpasses $1 Billion in Financing Since 1999

Dallas-based senior living community developer Senior Quality Lifestyles Corporation has surpassed $1 billion in financing since it was founded in 1999.

In 2015 alone, SQLC has secured more than $254 million in new funds for expansion, upgrades and refinancings of several of its continuing care retirement communities (CCRCs), effectively moving the developer past the $1 billion mark and securing its position as the largest nonprofit senior living provider in Texas.

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“We understand that success in senior living revolves around more than a bottom line; it revolves around creating a culture of caring and excellence that you would envision your aging parents to experience,” SQLC President and CEO Charles Brewer said in a prepared statement. “ As a nonprofit, we are able to reinvest in our residents’ life experiences and continue to create environments that are not only physically appealing and secure, but financially secure as well.”

Financing this year came in the wake of an affirmed Fitch rating for one SQLC properties and new ratings for two others, allowing the developer to transact refunding, financings and refinancing. This resulted in the substantial savings on previously borrowed funds, according to a news release.

Facilities refinanced or that received new funding in 2015 include Edgemere in Dallas, which received $94 million for dining area renovations and the addition of several new units; The Buckingham in Houston, which received $109.3 million of which a portion will be used for the construction of a new tower to add 106 independent living apartments, 27 assisted living suites, 18 memory care units and 32 private skilled nursing rooms; and Querencia at Barton Creek in Austin, which recently closed on $50.5 million for renovations and refinancing.

SunTrust Lends $138 Million for 2 Senior Housing Communities in West Palm Beach, Florida

Atlanta-based SunTrust Banks inc. closed on a tax-exempt $138 million loan for MorseLife Health System, a nonprofit health care and housing provider in West Palm Beach, Florida.

About $77 million of the credit facility will fund the construction of 135 apartments at the Tower of MorseLife, an amenities-driven project with restaurants, an art studio, gardens and more. Construction is slated to begin in December and and in mid-2017. The loan will also help renovate the Tradition of the Palm Beaches, a 144-unit independent and assisted living community.

The financing consisted of SunTrust offering a $66 million tax-exempt construction line of credit for the Tower of MorseLife and a $72 million tax-exempt term loan used to refinance existing bonds.

“The senior population in Palm Beach County continues to grow, and the Tower at MorseLife is meeting the greater demand for luxury independent living in our community,” MorseLife President and CEO Keith Myers said in a prepared statement.

RED Arranges $36.4 Million Construction Loan For Hamilton, New Jersey Community

RED Capital Partners, LLC, the proprietary debt and equity banking arm of comprehensive capital provider RED Capital Group, arranged a $36.4 million first mortgage construction loan for Homestead Senior Living LLC, a senior housing provider, to build an independent living, assisted living and memory care facility in Hamilton, New Jersey.

Capital to finance the project was provided by an institutional private equity group and Regional Capital Group, which will provide EB-5 financing and sponsor’s equity. RED Capital Partners worked with Homestead and other credit partners to reach a highly complex yet flexible capital structure, including an interim, bridge-to-EB5, mezzanine lender.

Paterson, New Jersey-based Pike Senior Housing Partners LLC partnered with Princeton, New Jersey-based Solvere Senior Living for the development of Homestead at Hamilton. The community will consist of 96 independent living units, 75 assisted living units and 24 memory care units.

“It’s always rewarding to work with a partner on a complex structured deal like this opportunity,” RED Senior Managing Director Kathryn Burton Gray said in a prepared statement. “We are very pleased that we were able to provide a customized solution for the team at Homestead Senior Living.”

Love Funding Secures $19.7 Million Loan to Build Senior Housing Community in Jacksonville, Florida

Love Funding, a provider of FHA multifamily, affordable and health care financing, has closed on a $19.7 million loan for the construction and permanent financing of Anthem Lakes, an assisted living community to be developed in Jacksonville, Florida.

The financing was secured through the U.S. Department of Housing and Urban Development’s 232 loan insurance program for health care facilities. The program allowed for a low-rate, non-recourse loan for a 15-month construction period and a subsequent 40-year term.

Anthem Lakes will consist of 117 licensed beds, with 34 dedicated for memory care and 83 for assisted living. An additional 20 units are reserved for independent living. The community will be located on 14.5 acres near the Mayport Naval Base and Air Station and will serve as the large veteran community in the area. Development is being led by Perry-McCall Construction, a full-service commercial construction company based in Jacksonville, Florida with extensive experience building health care projects.

JLL Capital Markets Originates $8.2 Million For Refinancing of SNF in Morehead City, North Carolina

JLL Capital Markets, a full-service global provider of capital solutions for real estate investors and occupiers, originated $8.2 million for the refinancing of Crystal Bluffs Rehabilitation and Health Care Center, a 92-bed skilled nursing facility in Morehead City, North Carolina, on behalf of Century Care Management.

The 35-year, fully amortizing non-recourse loan was provided by FHA’s 232/223(f) program and approved within 17 days of being assigned to a HUD underwriter. The loan closed the following month.

“Such a quick underwriting approval from HUD indicates an exceptional asset, operator and submission package, as well as the competence and commitment within HUD’s LEAN team,” JLL Senior Vice President Joel Mendes said in a news release. “Century Care is dedicated to providing the highest quality of care, and this mission was evident in the Crystal Bluffs facility.”

Crystal Bluffs specializes in post-acute and long-term care.

CBRE Arranges $19.1 Million Loan for Seattle, Washington Community, $40.1 Million Construction Loan for Eugene, Oregon Facility

CBRE National Senior Housing arranged loans for two senior living projects on the West coast: A $40.1 million construction loan for the development of a community in Eugene, Oregon, and a $19.1 million acquisition loan for a facility in Seattle, Washington.

The construction financing was secured on behalf of a joint venture between The Springs Living, a senior living developer, owner and operator, and Harrison Street Real Estate Capital, an institutional equity partner, to build The Springs at Greer Gardens. The community will consist of a total of 216 units, including 30 independent living cottages, 79 independent living units, 75 assisted living apartments, and 32 memory care units. The 256,100 square foot, three-story main building and the 30 cottages will be situated on a 13.4 acre plot of land.

CBRE arranged a $40.1 million, five-year, floating-rate construction loan for The Springs at Greer Gardens, with 48 months of interest only. The loan was placed through a national bank with a regional participant.

The $19.1 million acquisition financing was secured on behalf of Capitol Seniors Housing, a senior housing investment company, for Maple Leaf Assisted Living and Memory Care, a 119-unit independent living, assisted living and memory care community. The non-recourse, floating-rate loan includes a three-year term with 24 months of interest only. It consists of a $16.6 million loan for the acquisition of the property and a $2.5 million loan for planned capital improvements.

Once acquired, CSH will hand managerial duties to Milestone Retirement Communities. Upgrades planned for the facility include renovating the common area and updating units.

Written by Kourtney Liepelt

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