Seniors Housing Finance Activity: KeyBank, Ziegler

Ziegler Closes $110.96 Million in Financing for Epworth Living at The Ranch

Chicago-based speciality investment bank Ziegler announced the closing of the $110.96 million, unrated, tax-exempt, fixed-rate Series 2016 Bond issue for Epworth Living at The Ranch, a nonprofit continuing care retirement community (CCRC) in Stillwater, Oklahoma.

The Ranch will have 23 independent living villas, 114 independent living apartments, 48 assisted living apartments, 20 memory support suites and 40 skilled nursing beds. The CCRC is supported by an endorsement from the Oklahoma State University Alumni Association, which offers The Ranch the chance to market the CCRC to alumni. At the time of pricing, The Ranch was 70.1% pre-sold.


The Ranch is sponsored by longstanding Ziegler client Epworth Living, an Oklahoma not-for-profit corporation formed in 2012 to be the parent company for The Ranch and Epworth Villa, a CCRC in Oklahoma City.

The Series 2016 Bonds will be utilized to fund the construction and development of The Ranch, refinance a $6.75 million predevelopment loan, fund interest for 24 months, establish debt service reserve funds, and pay a portion of issuance expenses.

Epworth Living is contributing $2.03 million as equity to the financing. Liquidity support agreements (LSA) total $4.5 million and consist of $2 million from The Weitz Company, $1 million from the Oklahoma State University Alumni Association, and $1.5 million from Herman Meinders, which provided the predevelopment loan. Unique to this financing is a replacement of the Weitz LSA via an intercept in the Entrance Fee Waterfall: after funding the $9 million working capital fund and $2.5 million operating reserve fund, the next $2 million is utilized to fund The Ranch’s own LSA before the redemption of the “Temporary Debt.”


The 2016A Bonds, worth $88.46 million, mature in 2051 and make up the “Permanent Debt” of The Ranch; the average yield is 6.85%. The “Temporary Debt” is made up of $4.25 of 2016C Taxable MPS, $10.75 million of Series 2016B-2 TEMPS-60, and $7.5 million of 2016B-1 TEMPS-75, anticipated to be redeemed at 38%, 60%, and 75% occupancy of the independent living units, respectively.

Grandbridge Facilitates $9.48 Million Seniors Housing New Construction Loan

Grandbridge Real Estate Capital’s Seniors Housing and Healthcare Finance team facilitated the closing of a $9.49 million first mortgage loan secured by Benton of House of West Ashley, a to-be-built, 59-unit seniors housing community in Charleston, South Carolina.

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Funding for the construction loan was provided by Winston-Salem, North Carolina-based financial services holding firm Branch Banking and Trust Company (BB&T).

Grandbridge utilized its fully integrated commercial finance platform to secure the construction loan with its BB&T lending associates to guarantee the needs of its repeat client and the bank were met, according to Grandbridge Senior Vice President Richard Thomas.

Charlotte, North Carolina-based Grandbridge Real Estate Capital LLC is a subsidiary of BB&T.

KeyBank Provides $324 Million in Financing for Enlivant Assisted Living Portfolio

KeyBank Real Estate Capital has provided a $142 million corporate credit facility and a $182 million Freddie Mac loan to Enlivant, a Chicago-based owner and operator of almost 200 seniors housing communities across the country.

The Freddie Mac loan is secured by 36 assisted living communities made up of 1,477 units in 14 states. The capital provides non-recourse, permanent financing.

The corporate credit facility is made up of a $100 million term loan and a $42 million revolver, secured by 40 assisted living communities that are located in 12 states. The credit facility gives Enlivant capital to implement its operating and growth strategy.

KeyBank Healthcare Mortgage Banking Group’s Charlie Shoop arranged the Freddie Mac financing. Tim Sylvain, Paul Di Vito and Mark Amantea of KeyBank Real Estate Capital’s Healthcare Group arranged the corporate credit facility.

CBRE Arranges $39.9 Million Acquisition Financing for Pennsylvania Independent Living Community

CBRE National Senior Housing Vice Chairman Aron Will arranged acquisition financing on behalf of a fund sponsored by Green Courte Partners (GCP) for Arbour Square of Harleysville, a 276-unit independent living community located Harleysville, Pennsylvania.

CBRE, via its Freddie Mac Seller Servicer direct lending program, secured a $39.9 million, fixed-rate loan with a 10-year term and 72 months of interest-only payments. The borrower will retain current operator Heritage Senior Living to manage the community.

GCP is a Chicago-based real estate private equity group established in 2002 to invest in niche real estate asset classes. GCP has significant experience owning and operating age-restricted housing, but this transaction represents its second investment in an independent living/seniors housing apartment property.

Pennsylvania-based, Heritage owns, operates, develops and manages seniors housing communities throughout the Mid-Atlantic region. Heritage currently operates 15 seniors housing communities with a total of 1,523 units. In the state of Pennsylvania alone, Heritage operates 12 communities. 

Written by Mary Kate Nelson

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