Senior Housing Finance Activity: CBRE, RBC Capital Markets

Capital Funding Group Closes 3 Bridge-to-HUD Loans

Capital Funding Group, a health care commercial lender based in Baltimore, Maryland, has closed on three bridge-to-HUD loans: a $7.9 million loan for the acquisition of two skilled nursing facilities in Texas; a $13.8 million loan for the acquisition of two SNFs in New York; and an $18.9 million refinance for three assisted living communities in North Carolina.

Affiliates of real estate management company ARBA Group spent $10 million to acquire Heritage Place Nursing Home and Winterhaven Health Care Center, SNFs located near Houston, Texas with a combined capacity of 309. The $7.9 million loan closed on Sept. 30 and went toward the purchase price. Upon completion of the transaction, Concord Healthcare Group took over as operator.


Dorrance Ave HC, LLC and Sheridan Drive HC, LLC for $16.1 million acquired Safire Rehabilitation of Southtowns and Safire Rehabilitation of Northtowns, SNFs located in the Buffalo, New York area. A $13.8 million loan originated by Capital Funding, LLC, a subsidiary of CFG Community Bank, closed on Nov. 9 for the transaction.

An $18.9 million loan went toward the refinancing of existing debt on Ashe Gardens Memory Care, Chatham Commons and Lawyers Glen Assisted Living in North Carolina, which have a combined capacity of 205. The loan, which closed on Oct. 23, included $14. million in senior debt and $4.1 million in mezzanine financing.

CBRE Arranges $63 Million Loan for Joint Venture in New York


CBRE National Senior Housing, a senior housing originator, announced it arranged a $63 million loan for a joint venture between owner-operator the Engel Burman Group and institutional equity partner Harrison Street Real Estate Capital for The Bristal at East Northport and The Bristal at Sayville.

East Northport is a 118-unit assisted living community in East Northport, New York and was developed by Engel Burman in 2010. Sayvilled is a 153-unit assisted living and memory care community located in Sayville, New York and was developed by Engel Burman in 2014. It s currently owned under a partnership between Engel Burman and Harrison Street.

CBRE secured a $62.8 million, five-year, fixed-rate loan with five years of interest only for the joint venture. The loan was placed through a life insurance company.

The properties will continue to be managed by Ultimate Care Assisted Living Management, LLC, a division of the Engel Burman Group, under the joint venture.

RBC Capital Markets Raises $161.4 Million for Affordable Senior Housing

RBC Capital Markets Tax Credit Equity Group has announced the closing of a $161.4 million equity fund with participation from eight institutional investors, including a $20 million direct investment by RBC, to help finance 19 low-income housing tax credit (LIHTC) eligible apartment communities.

Of the 19 communities, 13 are multi-family and six are senior properties, representing 1,520 units of affordable housing. The developments are in California, Colorado, Florida, Indiana, Iowa, Massachusetts, Michigan, Missouri, New Hampshire, North Carolina, North Dakota, Pennsylvania, South Carolina, Texas and Washington.

“The creation of 1,520 units of affordable housing is exciting, especially given the current need for more affordable units across the U.S.,” Tony Alfieri, managing director of the firm’s Tax Credit Equity Group, said in a prepared statement.

The fund represents RBC’s first side-by-side fund investment, Alfieri said. To date, RBC Capital Markets Tax Credit Equity Group has raised $6.4 billion of equity for affordable multi-family and senior housing, historic and new markets developments, and has 812 assets under administration comprising more than 68,000 housing units.

Cushman & Wakefield Arranges Recapitalization of CCRC in Mequon, Wisconsin

Cushman & Wakefield Senior Housing Capital Markets has arranged the recapitalization of Newcastle Place, a 257-unit entrance fee continuing care retirement community (CCRC) located in Mequon, Wisconsin as part of a venture between Westminster Capital and LCS. Financial terms of the loan were not disclosed.

Under the recapitalization, private equity real estate fund manager ROC Seniors will replace Westminster Capital in the joint venture with LCS. Meanwhile, Life Care Services, the management arm of LCS, will continue to operate the community. The loan was arranged with Bank of America Merrill Lynch.

The CCRC consists of 158 independent living units, 38 assisted living units, 16 memory care units and 47 skilled nursing beds. Westminster Capital and LCS acquired Newcastle from Milwaukee Protestant Home in 2012 as a turnaround investment.

“We have seen a resurgence of interest in entrance fee CCRCs by investors that recognize the intrinsic advantages of this product type,” Cushman & Wakefield executive managing director Richard Swartz said in a prepared statement.

Written by Kourtney Liepelt

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