Senior Housing Finance Activity: CNL Healthcare Properties II Breaks Escrow

CNL Healthcare Properties II Breaks Escrow

Orlando, Florida-based CNL Healthcare Properties II, Inc., a non-traded real estate investment trust (REIT) focused on seniors housing and health care properties, has raised proceeds sufficient to break escrow in all states except Pennsylvania, Ohio, and Washington through its continuous public offering.

CNL Healthcare Properties II has accepted subscription funds worth $2.5 million as a result of its advisor’s purchase of Class A shares of common stock, the company announced. New stockholders will be admitted daily.

“CNL has a strong history of success in the seniors housing and healthcare markets, most recently with CNL Healthcare Properties, and we are excited to build upon that foundation with CNL Healthcare Properties II,” commented Stephen H. Mauldin, president and CEO of CNL Healthcare Properties II.

CNL Healthcare Properties II offers several share classes to provide broker-dealers and their possible investors with extra investment flexibility in response to recent regulatory changes. CNL Healthcare Properties II’s initial public offering of up to $2 billion was declared effective by the U.S. Securities and Exchange Commission (SEC) in March 2016.

Cushman & Wakefield Arranges $15.1 Million in Financing for LCB Senior Living

Cushman & Wakefield Senior Housing Capital Markets, in its exclusive representation of Norwood, Massachusetts-based senior living owner and operator LCB Senior Living, LLC, has arranged $15.1 million in non-recourse construction financing with a commercial bank for its twelfth senior housing development since it started its development program in 2013.

The Residence at Silver Square in Dover, New Hampshire, will be an 84-resident, 76-apartment independent living, assisted living and memory care community located 10 miles from Portsmouth, New Hampshire.

Berkshire Bank provided $15.1 million in non-recourse construction financing for the joint venture between senior housing investors Blue Moon Capital Partners and LCB. The project is set to break ground in August 2016 and is scheduled to open during the first quarter of 2018.

The Cushman & Wakefield team involved in the transactions included Executive Managing Director Rick Swartz, Senior Director Aaron Rosenzweig, Managing Director Jay Wagner, and Director James Dooley with Associate Caryn Miller.

To date, LCB owns and operates 1,525 seniors housing beds with an additional 330 under construction. 

“We were pleased that the lender delivered on very strong terms and in doing so was able to commence a relationship with LCB and Blue Moon,” Rosenzweig said.

Love Funding Secures $6.6 Million Bridge Loan for Assisted Living Community in Utah

Washington, D.C.-based lender Love Funding arranged a $6.6 million bridge loan for the construction of Shadow Valley Assisted Living and Memory Care, a 62-bed community in Ogden, Utah.

Local developer Giza Development is constructing the community. The financing will enable Giza to begin construction more quickly than a HUD-insured loan. Giza intends to convert the financing to a permanent HUD loan after three years.

James Vanar, who works in Love Funding’s office in Los Angeles, arranged the loan. Love Funding’s parent company Midland States Bank is set to provide the capital.

HFF Arranges $63.9 Million Financing for Seniors Housing Properties in Pennsylvania and New York

Holliday Fenoglio Fowler, L.P. (HFF) announced that it has closed the $98.25 million sale of two Class A seniors housing communities: The Solana Willistown in Willistown, Pennsylvania, and The Solana Roseland in Roseland, New Jersey.

HFF marketed the offering exclusively on behalf of Formation-Shelbourne Senior Living Services and found an undisclosed buyer. Formation-Shelbourne Senior Living Services is a venture between Formation Development Group, an Atlanta-based developer, asset manager and investor specializing in the acquisition, development and reprogramming of senior living communities, and Shelbourne Healthcare Development Group, a Philadelphia-based owner, investor and developer of health care and senior living assets.

Additionally, HFF helped the new owner secure a $63.86 million acquisition loan via Cornerstone Real Estate Advisers, one of the biggest global real estate investment advisers, acting on behalf of an institutional client.

HFF Associate Director Sarah Baccich led the team’s debt placement efforts on behalf of the buyer/borrower.

The Solana portfolio encompasses 118 assisted living and 53 memory care units in a variety of options ranging from studio to two-bedroom floor plans. 

Capital One Closes $23.4 Million FHA Loan to Refinance Supportive Living and Skilled Nursing Facility

Capital One (NYSE: COF) announced that it has provided a $23.4 million, 35-year fixed-rate HUD 232/223(f) loan to refinance a skilled nursing and supportive living facility in Northern Illinois. 

The supportive living facility used to be a Hilton Hotel, and its conversion was finished in 1989. The skilled nursing facility, which was completed in 2013, is licensed for 298 beds.

The borrower is a repeat client of Senior Vice President Joshua Rosen—who originated the transaction—and Capital One.

“The borrower was eager to complete the transaction as quickly as possible to ensure that they would be able to lock in today’s low interest rates for the life of the 35-year loan,” Rosen said.

Written by Mary Kate Nelson