Senior Housing Finance Activity: Capital One, CBRE

Capital Funding Group Closes $6.8 Million Bridge-to-HUD and $19.8 Million HUD 232 Loan 

Capital Funding Group closed a $19.79 million HUD 232 new construction loan for Transitional Care of Arlington Heights in Arlington Heights, Illinois, as well as a $6.8 million bridge-to-HUD loan for Village Square Skilled Nursing Facility in San Marcos, California.

Village Square Skilled Nursing Facility has 118 beds and offers rehabilitation and skilled nursing services. Capital Funding, LLC served as the only lender for the $6.8 million bridge-to-HUD loan to finance the facility’s acquisition. Gary Sever, a director of real estate finance originated the loan, which closed on March 31. Capital Funding collaborated with the new operator in this deal to underwrite to their stabilized budget, therefore maximizing the leverage for the borrower.

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Meanwhile, Transitional Care of Arlington Heights is a new 120-bed skilled nursing facility. Capital Funding, LLC served as the only lender for the $19.792 million HUD 232 new construction loan for the building. The loan, which closed on April 21, served to maximize leverage at a low fixed interest rate with a 40-year term.  Craig Casagrande, a director of real estate finance, originated the loan.

Capital One Closes $5.9 Million FHA Loan to Refinance Indiana Skilled Nursing Facility   

Capital One provided a 35-year, $5.9 million fixed-rate HUD 232/223(f) loan to refinance a 95-bed skilled nursing facility in Princeton, Indiana. Senior Vice President Joshua Rosen originated the transaction. 

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Capital One and Rosen have closed several HUD-insured projects with the borrowers, who are skilled nursing specialists with a portfolio of properties in Indiana, Illinois, Ohio, Michigan, Oklahoma and Texas. 

“The 232/223 (f) loan program—with its extended maturities—is a great way for investors to lock in today’s historic rates well into mid-century,” Rosen said. “This program is attractive to skilled nursing operators because the loan-to-value ratio can be as high as 85% in some circumstances and eligible loans are nonrecourse and fully assumable.”

The facility, which has 45 semi-private and five private rooms, was constructed in 1968, with an addition added in 1974. It is certified by Medicare and Medicaid.

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CBRE Arranges $21.9 Million Loan for Assisted Living Community in California

CBRE Capital Markets’ debt & structured finance team arranged a $21.9 million FHA loan for the construction of an 84-unit assisted living and memory care community in Goleta, California, called Mariposa at Ellwood Shores.

Jesse Weber and Andrew Behrens of CBRE’s San Francisco office, along with Noah Reischmann of CBRE’s FHA lending platform, arranged the non-recourse, 40-year, fixed-rate loan with two years of interest-only payments.

Mariposa at Ellwood Shores is set to be a two-story, 60,909-square-foot community with 64 assisted living beds and a 20-bed memory care extension. Oliver Dixon and Westmont Living principals Michael O’Rourke and Andrew Plant will own the project.

Westmont Living is set to operate the community once it is finished.

SunTrust Provides $39 Million Loan for Seniors Housing Expansion in Florida

Orlando Senior Health Network received a $39 million loan from SunTrust Bank, which the owner-operator will use to expand Orlando Lutheran Towers, a continuing care retirement community (CCRC) in Orlando, Florida.

The expansion will add 33 skilled nursing beds to the CCRC, as well as 45 full-time employees to serve the new residents. The $39 million loan includes both refinancing of existing debt and funds for capital improvements.

Renovations are slated to start this summer with the project scheduled for completion in 2018.

Written by Mary Kate Nelson

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