Senior Housing Finance Activity: Capital One, Ziegler

Capital One Closes $10.3 Million in FHA Loans to Refinance Two Illinois SNFs

Capital One (NYSE: COF) recently announced that it has provided two fixed-rate HUD 232/223(f) loans totaling $10.3 million to refinance a 131-bed skilled nursing facility in Carbondale, Illinois, and a 70-bed skilled nursing facility in Anna, Illinois. The transaction was originated by Senior Vice President Joshua Rosen. Capital One and Rosen have previously closed several HUD-insured projects with the borrower, a skilled nursing specialist with a portfolio of properties in Indiana and Illinois.

“Having worked closely with the borrower before, we were able to act quickly and lock in an extremely favorable interest rate,” Rosen said. “With the extended maturities investors can secure through the 232/223 (f) loan program—in this case 35 years —even a slight reduction in interest rates can make a big difference over the long term.”

Both facilities are in good condition, according to a Capital One press release. The Carbondale facility, which received $4.4 million in financing, was originally built in 1965. The property in Anna was constructed in 1974 and received a $5.9 million loan.

The LaSalle Group Partners with Lancaster Pollard to Fund Memory Care Construction

The LaSalle Group, Inc., a family-owned company that builds, designs, develops, owns and manages 46 memory care communities, used Lancaster Pollard’s Propero® Seniors Housing Equity Fund to finance the construction of a 54-unit memory care community in Franklin, Wisconsin.

The Propero structure offered LaSalle an equity solution that provided a clear path to ownership and enabled them to minimize the amount of upfront capital. Propero’s investment funded most of the total development cost, according to a press release.

Kyle Hemminger acted as the lead for Lancaster Pollard’s investment banking platform, and Chris Mauger led the transaction for Propero. Randy Brown and John Barbee, meanwhile, took the lead for LaSalle.

KeyBank Arranges $39.9 Million Fannie Mae Facility to Harmony Housing for Affordable Housing Portfolio

KeyBank has arranged and structured a $39.9 million Fannie Mae master credit facility for Harmony Housing, a 501(c)(3) not-for-profit organization that concentrates on preserving affordable housing rental properties. Harmony Housing plans to use the facility for a five-property affordable housing portfolio in Wisconsin and Floirda.

The properties include Villas at Cove Crossing in Lantana, Florida; Centre Court Apartments in Bradenton, Florida;  Foxbrook Senior Apartments in Brookfield, Wisconsin; and Prairie Ridge Senior Apartments in Pleasant Prairie, Wisconsin.

The facility structure enables Harmony Housing to add properties to the facility, accounting for future acquisitions, and to refinance assets in its current portfolio.

Grandbridge Facilitates Funding of $125 Million Seniors Housing Portfolio

The Seniors Housing and Healthcare Finance Group at Charlotte, North Carolina-based Grandbridge Real Estate Capital recently facilitated the acquisition of a $125 million seniors housing portfolio, which included four independent living communities in four states.

Funding for the assumption and supplemental loans were funded via Fannie Mae’s DUS ® Seniors Housing loan product, according to a Grandbridge press release.

“Grandbridge was able to underwrite and close $25 million in supplemental loans while simultaneously underwriting and closing
$100 million in assumption loans for the existing Fannie Mae loans that Grandbridge originated for the seller several years earlier,” Senior Vice President Richard Thomas said in the press release.

Grandbridge’s dedicated Seniors Housing and Healthcare Finance Group offers construction, nonrecourse, permanent and  acquisition/bridge financing options to seniors housing owners across the country. Grandbridge Real Estate Capital is a subsidiary of Branch Banking and Trust Company (BB&T).

CBRE Arranges Sale and Acquisition Financing for Memory Care Community in Pennsylvania

CBRE National Senior Housing has arranged the sale and acquisition financing for The Solana at Horsham, a Class “A” assisted living and memory care community in North Wales, Pennsylvania, that has 76 units.

Matthew Whitlock and Lisa Widmier, both of whom are executive vice presidents at CBRE National Senior Housing, represented the seller. Aron Will, vice chairman of CBRE National Senior Housing, arranged the acquisition financing on behalf of Sage Senior Living and an institutional joint venture partner.

CBRE secured a non-recourse, 5-year floating rate loan that includes 36 months of interest only from a regional bank. Sage Senior Living is set to manage the community, according to CBRE.

Sage Senior Living is a regional owner/operator of Class A senior living communities in New England. The Solana at Horsham represents Sage’s sixth community under management and third community located in the Philadelphia metropolitan statistical area.

Ziegler Closes $20.46 Million Financing For Glencroft Senior Living

Specialty investment bank Ziegler, based in Chicago, announced the successful closing of $20.46 million non-rated, fixed-rate Series 2016 Bond issue for Glencroft Senior Living, an Arizona non-profit corporation.

Glencroft operates under the parent company Friendship Retirement Corporation, which is the sole corporate member of Glencroft Towers I, Sarah’s Place, Friendship Foundation and Colter Commons. The Corporation, Glencroft Towers I and Sarah’s Place offer 752 resident accommodations at one of the largest continuing care retirement communities in Arizona.

The Obligated Group at issuance of the Series 2016 Bonds will include all entities except Colter Commons, according to a press release. Glencroft Towers I and Sarah’s Place were funded with HUD and FHA-insured loans, respectively, and will be refinanced with proceeds of the Series 2016 Bonds.

The Series 2016 Bond issuance marks an important achievement for the Glencroft organization, the company said, following the recession and housing market crash that left the community hard-hit. Glencroft shifted from an entrance fee model to a rental model, placed a new leadership team in place, and implemented major marketing changes, all of which led to dramatic occupancy improvement.

KeyBank Provides $116.6 Million for Sentio Healthcare Properties

KeyBank Real Estate Capital recently closed $116.6 million in financing with Orlando, Florida-based real estate investment trust (REIT) Sentio Healthcare Properties, Inc. In completing the financing, Key secured a direct (balance sheet) $62 million term loan and Fannie Mae loans worth $54.6 million in total. The financing enables Sentio to re-capitalize a portfolio of seniors housing properties through accessing the permanent financing market at attractive rates for three of the properties while maintaining attractive bank-based financing for the remaining five properties.

Sarah Belmont and Grant Saunders of KeyBank Real Estate Capital’s Healthcare Group originated the bank term loan, and Charlie Shoop of Key’s Healthcare Mortgage Banking Group arranged the Fannie Mae financing. Key closed both the Fannie Mae and the balance sheet financing simultaneously within 65 days of engagement.

Sentio is a public, non-traded REIT that was founded in 2006. The REIT mainly invests in seniors housing and health care communities with investments in 34 properties that are well diversified throughout 16 states.

Written by Mary Kate Nelson