Senior Housing Finance Activity: Capital Funding Group, HHC Finance

Capital Funding Group Closes 3 Bridge-to-HUD Loans For Skilled Nursing Facility Acquisitions

Capital Funding Group, a full-service provider of comprehensive financing solutions for health care facilities across the country, announced the closing of three bridge-to-HUD loans for acquisitions in North Carolina, Texas and California.

A $10.8 million bridge-to-HUD loan will finance the acquisition of Creekside Care and Scotland Manor Health Care Center, skilled nursing facilities in North Carolina consisting of 151 and 64 beds, respectively. Capital Lending and Mortgage Group, LLC provided the funds for ARBA Group to acquire and renovate the two facilities.

Capital Funding also secured an $8.16 million loan for ARBA Group’s acquisition of The Courtyards at Fort Worth, a 365-bed SNF in Fort Worth, Texas. Save Senior Care sold the facility for $9.6 million, and Concord Healthcare will serve as the facility’s new operator.

Additionally, Capital Funding closed a two-part deal to finance the acquisition of Bloomfield East, a 130-bed SNF in Lynwood, California, by a group of private real estate investors. Capital Funding was the sole lender in a $1.95 million mezzanine loan and an agent/senior lender in a $6.5 million bridge-to-HUD loan. Reliant Management will serve as the facility’s new operator.

Housing & Healthcare Finance Closes $80.7 Million HUD Loan to Refinance Manhattan Skilled Nursing Facility

Housing & Healthcare Finance has closed an $80.7 million loan to refinance the existing conventional bank debt at a 520-bed skilled nursing facility in Manhattan, New York in HUD’s largest single-asset, skilled nursing facility loan ever, according to HHC Finance.

A member of the CareRite Centers network of communities purchased the Upper West Side facility three years ago for $80 million with a 13% cap rate. HHC Finance had to get approval from multiple levels at HUD for a 232/223(f) loan of such size, resulting in the 30-year loan with an interest rate in the mid-3s, according to a news release.

HHC Finance also arranged an $8.6 million HUD loan for a 236-bed skilled nursing facility in Tampa, Florida and an $8 million HUD loan for a 118-unit assisted living community in Rochester, New York to bring the lender’s total loan amount to just under $100 million in December.

Preston Hollow Capital Completes $29.2 Million Loan for Senior Living Community in Louisiana

Preston Hollow Capital has completed $29.2 million in senior bond financing alongside the Louisiana Public Facilities Authority for Covington Senior Care Services for the construction of an assisted living and memory care community near New Orleans.

The loan will fund the construction of Inspired Living at Kenner. Plans include a 127-unit, three-story facility across 105,000 square feet. Amenities at the community will include a swimming pool, a fire pit, reflection ponds and more. Construction is underway, and Validus Senior Living will manage the property upon completion of construction in March 2017.

Validus Senior Living Gets New $50 Million Credit Line to Acquire, Refinance Senior Living Communities

Validus Senior Living has access to a $50 million line of credit from Hancock Bank for the acquisition and refinancing of senior living communities in the Tampa, Florida area.

Validus used the line of credit to purchase Inspired Living at Tampa in December, and is in the process of buying Inspired Living at Bonita Springs in a deal expected to close by the end of March. Part of the $50 million also went toward the refinancing of Inspired Living at Sun City Center.

All three communities specialize in memory care, and they add 190 memory care units to the Validus portfolio. The goal is to create “vibrant communities with highly personalized care,” Validus CEO Steve Benjamin said in a news release.

“This new relationship with Hancock Bank allows us to accelerate our growth so we can better serve our senior population,” he said.

Cushman & Wakefield Secures $28.7 Million Loan for Acquisition of Tampa Senior Housing Property

Cushman & Wakefield has arranged a $28.7 million loan for the acquisition and redevelopment of Renaissance Senior Living, a 226-unit community located in Tampa, Florida.

The Carlyle Group will acquire the property and conduct renovations, including separating the levels of care offered—independent living, assisted living and memory care—into their own buildings, as well as improvements to community amenities.

The loan was arranged through Cushman & Wakefield’s National Senior Housing Capital Markets team through an undisclosed regional bank.

Walker & Dunlop Arranges $68.2 Million Construction Loan for Seniors Housing Community in Lake Worth, Florida

Walker & Dunlop arranged a $68.2 million loan for the construction of Atria Villages of Windsor, an independent living, assisted living and memory care community slated for Lake Worth, Florida.

Investment firm Big Rock Partners plans to develop the community on a 22.5-acre site. Atria Villages of Windsor will consist of 186 independent living units, 78 assisted living units and 54 memory care units. Big Rock plans to open the community in 2017.

CBRE Arranges $53 Million in Acquisition Financing for MorningStar Senior Living Portfolio

CBRE National Senior Housing has arranged the portfolio sale and $53 million in acquisition financing for MorningStar at Mountain Shadows, MorningStar at Bear Creek and MorningStar at Jordan.

The funding was arranged on behalf of a joint venture between owner, operator and developer MorningStar Senior Living and an institutional senior housing investor. The $53 million, non-recourse floating rate loan includes a three-year term and two years of interest only from a national bank.

MorningStar at Mountain Shadows, located in the suburbs of Colorado Springs, Colorado, is currently over 94% occupied and consists of 45 assisted living units and 19 memory care units. MorningStart at Bear Creek is a free-standing memory care community with 60 licensed beds. MorningStar at Jordan  consists of 55 assisted living and 29 memory care units.

JLL Capital Markets Originates $7.6 Million to Refinance Senior Living Facility in Moorhead, Minnesota

JLL Capital Markets, a full-service provider of capital solutions for real estate investors and occupiers, has secured $7.6 million for the refinancing of Riverpointe of Moorhead, a 74-unit assisted living and memory care facility located in Moorhead, Minnesota.

The 35-year, fully amortizing, fixed-rate loan was provided by FHA’s Section 232/223(f) program to CSLM, LLC. The loan also includes $100,000 to fund future capital improvements at the property.

“The HUD loan we were able to secure for this well-performing property will generate significant annual debt service savings to the owners,” JLL Vice President Jeff Lepley said in a news release. “We were able to secure a commitment for this loan in just 21 days from assignment to commitment, which stands as a testament to the proficiency of the ownership as well as the strong fundamentals of the property itself.”

Congressional Bank Closes 5 Seniors Housing Loans Totaling $11.6 Million

Congressional Bank, a Bethesda, Maryland-based community bank, has closed five loans totaling $11.6 million for three senior housing transactions.

The loans include a $3 million bridge-to-HUD loan and a $1.5 million revolving line of credit for the acquisition and renovation of a 107-bed skilled nursing facility in New Bedford, Massachusetts; a $2.6 million bridge-to-HUD loan and a $500,000 revolving line of credit for the acquisition of a 67-bed skilled nursing and assisted living facility in Huntington, West Virginia, and a $4 million revolving line of credit for the acquisition and operations of a 118-bed skilled nursing facility in Tucson, Arizona.

Written by Kourtney Liepelt