Senior Housing Finance Activity: Capital One, KeyBank

Capital One Closes $61 Million Term Loan and $12 Million Revolving Credit Facility to CommuniCare Family of Companies

Capital One (NYSE: COF) acted as the sole lead arranger and administrative agent for a $61 million syndicated term loan and $12 million syndicated revolving credit facility to affiliates of CommuniCare Health Services. The loan and credit facility were utilized for the acquisition of nine skilled nursing facilities in Maryland and Ohio.

CommuniCare Health Services is part of the CommuniCare Family of Companies, a family-owned post-acute care provider based in Cincinnati, Ohio.

“The team leveraged our relationships with the seller, a publicly traded REIT, to assist CommuniCare with this acquisition,” Capital One Healthcare Senior Managing Director Jim Seymour said in a statement. “We worked closely with all parties to close the complex transaction within a narrow window of opportunity.”

KeyBank Arranges $16.7 Million in Financing for Louisiana Senior Housing Community

KeyBank Real Estate Capital arranged a $16.7 million fixed-rate, non-recourse, 10-year Freddie Mac loan for the acquisition of a 94-unit independent living, assisted living and memory care community called The Trace at Claiborne Hill in Covington, Louisiana.

The property was originally constructed in 2009, and a 24-unit secured memory care building was added two years ago.

Carolyn Nazdin of Key’s Commercial Mortgage Group arranged the financing, which was utilized to acquire the property.

Capital Funding Group Announces Several Closed Transactions

Capital Funding Group announced the closing of a $12.96 million HUD 232 new construction loan for Spring Arbor Cottage, a $10 million working capital line of credit for Wingate Healthcare, a $7 million HUD line of credit for Petersen Health Care and a $10 million commitment increase for Avalon Healthcare’s existing line of credit.

Spring Arbor Cottage is a memory care community in Virginia that has 48 beds. Capital Funding, LLC arranged a $12.96 million HUD 232 loan for new construction at the community. The loan, which is fixed-rate and has a 40-year term, was funded for an affiliate of HH Hunt Corporation. The loan, which closed on June 10, was originated by Gary Sever.

Petersen Health Care is a skilled nursing provider with several facilities throughout Illinois. Capital Finance, LLC served as the only lender in a $7 million HUD line of credit for Petersen’s communities. Jeffrey Stein originated the loan, which closed on May 12.

Avalon Healthcare is a skilled nursing provider that has facilities in the Western United States. Capital Finance, LLC, as agent for the lending group, exercised a $10 million accordion feature to existing lines of credit for Avalon’s facilities in Utah. This boosted the overall commitment amount to $28.9 million. Jeffrey Stein originated the deal, which closed on May 27.

Wingate Healthcare is a skilled nursing provider with facilities in Rhode Island, Massachusetts and New York. Capital Finance, LLC served as sole lender in a $10 million working capital line of credit for eight of Wingate’s properties in Massachusetts. Jeffrey Stein originated the loan, which closed on May 16.

CBRE Secures $80 Million Loan for Belmont Village Communities

CBRE National Senior Housing Vice Chairman Aron Will arranged portfolio acquisition financing on behalf of a joint venture between Blue Moon Capital Partners and Houston-based Belmont Village Senior Living for Belmont Village Scottsdale in Scottsdale, Arizona, and Belmont Village Thousand Oaks in Thousand Oaks, California.

CBRE secured an $80 million, seven-year, non-recourse, fixed-rate loan with only 48 months of interest. The loan was procured through a life insurance company.

The two Belmont Village properties have a total of 275 assisted living and memory care units between them.

Belmont Village is a privately held company that currently has $2 billion in assets and 3,400 operating senior housing units, with 800 units under development.

Blue Moon, headquartered in Boston, is a private equity investment advisor that was established to match institutional capital with forward-thinking senior housing companies diversified by geography and operating platforms.

Capital One Closes $20.9 Million FHA Loan to Refinance Chicago Skilled Nursing Facility

Capital One (NYSE: COF) provided a $20.9 million fixed-rate, HUD 232/223(f) loan to refinance a 318-bed skilled nursing facility in Chicago. The Medicare and Medicaid-certified facility, constructed in 1975, offers on-site dialysis and can accommodate patients who have dementia.

“This was a complex transaction involving multiple master leases, accounts receivable lines that cross multiple facilities, and a multilayer organizational tier structure,” said Senior Vice President Joshua Rosen, who works in Capital One Multifamily Finance’s Chicago office and originated the transaction. “The Chicago HUD office worked hand-in-hand with us to help us meet the client’s deadline.”

Capital One refinanced the property under HUD’s 232/223(f) loan program, which offers extended maturities. In this case, the loan has a 35-year term.

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, Michigan, Texas, Oklahoma and Ohio.

Written by Mary Kate Nelson