Senior Housing Finance Activity: RED Capital, CBRE

RED Closes $20 Million Balance Sheet Construction Loan for Creekside Senior Living

RED Capital Partners, LLC recently completed a $20 million Balance Sheet construction loan for the development of Creekside Senior Living, a Class A assisted living and memory care community with 129 units in Bountiful, Utah.

Specifically, the loan was completed for Creekside Senior Living at Bountiful LLC, a joint venture between Stellar Senior Living, Creekside Senior Living Development Group, LLC, US Development, Inc. and the John S. Smith Family of Bountiful, Utah. The community will be operated by Stellar Senior Living, a family-owned company based in Salt Lake City, Utah, which operates senior living communities throughout Utah, Colorado, Idaho, Arizona and Washington.

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“We are proud to have played a part in the realization of a unique community legacy and the coming together of a very remarkable project,” Brady Johnson, the director of senior housing and health care at RED, said in a press release. “The Mountain West is a unique focus for us and we are excited to strengthen our ties here in Utah. We also look forward to building on our relationship with Stellar Senior Living and are sincerely pleased they chose RED.”’

RED Capital Partners, LLC is the proprietary debt and equity banking arm of comprehensive capital provider RED Capital Group, LLC, itself a subsidiary of Dallas-based capital and asset management firm ORIX USA Corp.

CBRE Arranges Refinancing for Senior Living Community in Ohio

CBRE National Senior Housing Vice Chairman Aron Will arranged a refinancing on behalf of a joint venture between The Freshwater Group/Watermark Retirement Communities and NorthStar Healthcare Income, Inc. for Pinebrook Retirement Living, a 124-unit, Class A independent and assisted living community in Milford, Ohio.

Specifically, CBRE secured a 10-year floating rate CME loan from Freddie Mac which features 60 months of interest only. Watermark will continue to manage the community.

Watermark is a TFG portfolio company that manages and operates its senior housing assets, which currently consist of 38 communities across 20 states with approximately 7,000 beds.

NorthStar is a non-traded public real estate investment trust (REIT) that was created to originate, acquire and asset manage debt and equity investments in health care real estate. 

KeyBank Provides $249 Million in Financing to Formation Capital for SNF Portfolio

KeyBank Real Estate Capital, a subsidiary of Cleveland-based KeyCorp, has provided $249 million in FHA financing to Formation Capital, a private investment management company with a seniors housing concentration.  

KeyBank’s Healthcare Mortgage Group’s Paul Di Vito and John Randolph arranged the financing through FHA’s 232/223(f) mortgage insurance program. 

The financing will be utilized for a 22-property skilled nursing portfolio with 2,682 total beds. Five of the facilities are located in Mississippi, and 17 are located in Florida.

Proceeds of the loan were utilized to pay down an existing bridge loan, which funded the purchase of 66 facilities.

CBRE Secures $28.7 Million Loan for Senior Living Community in Denver

CBRE National Senior Housing Vice Chairman Aron Will arranged construction financing on behalf of a joint venture between MGL Partners, Blue Moon Capital Partners and Leisure Care for Carillon DTC Senior Living, a to-be-built, Class A senior living community in Denver.

The independent living, assisted living and memory care community will have 163 units in total.

CBRE secured a non-recourse, $28.7 million floating rate loan which features a 6-year term with 48 months of interest only. The loan was procured from a regional bank, according to CBRE.

Boston-based Blue Moon is a private equity investment advisor established to match institutional capital with forward-thinking senior housing companies diversified by geography and operating platform. MGL Partners, meanwhile, is a Denver-based senior housing and multifamily development firm. 

Seattle-based Leisure Care currently operates 39 senior living communities with more than 2,500 employees across the United States. The company has about 6,000 units under management and serves more than 7,000 residents.

Ziegler Prices $61.53 Million Financing For Westminster Manor

Chicago-based speciality investment bank Ziegler announced the successful bond pricing of Westminster Manor’s $61,525,000 Series 2016 Bonds.

Austin, Texas-based Westminster Manor is a not-for-profit organization established in 1973 for the purpose of operating and owning a retirement community. Specifically, Westminster is a Type A continuing care retirement community (CCRC) with a total of 328 independent living units and 22 assisted living units. The CCRC also includes The Arbour at Westminster Health Center, which has 85 skilled nursing beds, 30 of which are used for memory support. Life Care Services has managed the CCRC since 1981.

The proceeds of the $61,525,000 Series 2016 Bonds will be utilized to (1) refund a portion of the outstanding Series 2010 Fixed Rate Bonds, (2) finance a debt service reserve fund for the Series 2016 Bonds, and (3) pay certain costs of issuance, according to a Ziegler press release. The Series 2016 Tax-Exempt Fixed Rate Bonds earned a “BBB” rating from Fitch.

Additionally, Westminster will realize about $588,000 in yearly cash flow savings for the next 24 years, representing $11.4 million on a net present value basis. 

Grandbridge Facilitates $43.5 Million Seniors Housing Acquisition/Bridge Loan 

Grandbridge Real Estate Capital’s Seniors Housing and Healthcare Finance team recently facilitated the closing of a $43.5 million acquisition/bridge loan to a joint venture between senior living owner/operator Meridian Senior Living and Chicago-based Blue Vista Capital Management, LLC.

Specifically, the non-recourse loan was secured by two assisted living communities: the 147-unit Chevy Chase House in Washington, D.C. and the 88-unit Country House in Yorktown Heights, New York.

Funding for the purchase was provided through BB&T Real Estate Funding, Grandbridge’s exclusive proprietary lending platform. Senior Vice President Richard Thomas and Vice President Meredith Davis originated the transaction, according to a Grandbridge press release.

Written by Mary Kate Nelson

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