Senior Housing Finance Activity: KeyBank, HFF

KeyBank Provides $47.7 Million in Financing for Assisted Living Portfolio in Southeast

KeyBank Real Estate Capital has arranged a total of $47.7 million of permanent financing for six assisted living facilities managed by Ridge Care Inc. The financing included a 35-year, $38.5-million fixed-rate loan through the FHA 232/223(f) mortgage insurance program, as well as a $9.2 million Fannie Mae loan.

Charlie Shoop and John Randolph of Key’s Healthcare Mortgage Group arranged the financing, which provides Ridge Care with cash flow flexibility and extra proceeds to make capital improvements within its portfolio and continue the development of additional assisted living facilities.

The six recently refinanced properties comprise 319 units and include Walnut Ridge Assisted Living in Walnut Cove, North Carolina; Kerner Ridge Assisted Living in Kernersville, North Carolina; Forest Ridge Assisted Living in West Jefferson, North Carolina; Mallard Ridge Assisted Living in Clemmons, North Carolina; Arbor Ridge at Stanleyville in Stanleyville, North Carolina; and The Havens at Princeton in Princeton, West Virginia.

Citizens Bank Announces $21 Million in New Financing for Village of St. Edward

Citizens Bank has provided $21 million in new financing for the Village of St. Edward, which will provide funds to construct a new 28-bed memory care unit, improve existing facilities and refinance bond debt.

The Village of St. Edward is a continuing care retirement community on a single campus in Fairlawn, Ohio. The property currently consists of a 73-unit assisted living facility, an 81-bed skilled nursing facility and a 77-unit independent living apartment complex.

HFF Arranges $95.5 Million in Financing for Southern California Seniors Housing Development

Holliday Fenoglio Fowler, L.P. (HFF) announced it has arranged $95.5 million in joint venture equity and construction financing for the development of Crestavilla, a 211-bed, to-be-built, luxury, resort-style seniors housing community in the Orange County community of Laguna Niguel, California.

The HFF equity and debt placement team representing the developer was led by Senior Managing Directors Chad Lavender and Ryan Maconachy, and Managing Director James Fowler.

HFF worked on behalf of Steadfast Companies, the developer, to arrange the $27.9 million joint venture equity capital with Fremont Realty Capital. Additionally, HFF secured the $67.6 million construction loan for the partnership via a local bank.

Crestavilla is expected to have 115 assisted living units, 61 independent living units and 25 memory care units, totaling 201 units with 211 beds.

SpringShire Closes on Pre-Development Financing for Retirement Community in Greenville, North Carolina

SpringShire Retirement, LLC, a North Carolina not-for-profit corporation, announced the closing of revenue anticipation bonds to move forward with the development of a retirement community in Greenville, North Carolina.

These bonds will enable the community to move forward with the updated design and marketing of the community, which is scheduled to begin construction in 2018. The community is being developed by Retirement Living Associates, Inc., a firm that also manages several other senior living communities in the Southeast.

Herbert J. Sims, a Connecticut-based senior living finance institution, assisted SpringShire in obtaining $14.8 million in pre-development capital to finance this stage of the community. The bonds were issued via the Public Finance Authority in Wisconsin. Once the community hits a certain percentage of pre-sale reservation deposits, it is expected to move forward with obtaining permanent bond financing to start construction.

SpringShire, which will be licensed as a nonprofit CCRC, is expected to consist of 12 independent cottages, 150 independent living apartments, an 8-bed assisted living unit and a 12-bed skilled nursing unit.

HFF Secures $24.995 Million in Financing for Seniors Housing Community in Seattle

Holliday Fenoglio Fowler, L.P. (HFF) closed the sale of and secured acquisition financing for Queen Anne Manor, a 93-unit Class A seniors housing community in the Upper Queen Anne neighborhood of Seattle, Washington. Queen Anne Manor has 39 memory care and 54 assisted living units.

HFF marketed the property exclusively on behalf of the seller. Washington, D.C.-based Capitol Seniors Housing acquired the asset for $36.25 million, free and clear of existing debt. In addition, HFF assisted the purchaser in securing a $24.995 million, seven-year, floating-rate loan through Freddie Mac’s CME Program. The securitized loan will be serviced by HFF via its Freddie Mac Program Plus® Seller/Servicer program. Milestone Retirement Communities, LLC will manage the property.

The HFF team was led by senior managing directors Ryan Maconachy and Chad Lavender and associate director Sarah Baccich.

Written by Mary Kate Nelson