Senior Housing Finance Activity: HFF, Capital Funding Group

HFF secures $41.5 Million Financing for Seniors Housing Portfolio in Sacramento, California

Holliday Fenoglio Fowler, L.P. (HFF) recently announced that it has secured financing worth $41.547 million for a three-property seniors housing portfolio in Sacramento, California.

HFF worked on behalf of an affiliate of Harbert Management Corporation (HMC)—Harbert Seniors Housing Fund I, LP—to secure the seven-year, floating-rate acquisition loan via Freddie Mac’s CME Program. The securitized loan will be serviced by HFF through its Freddie Mac Program Plus® Seller/Servicer program.

The properties in the portfolio are: Chateau on Capitol Avenue, an assisted living community with 56 units and 60,268 rentable square feet; Chateau at River’s Edge, which has 97 assisted living units and 10 memory care units; and River’s Edge, which has 94 independent living units totaling 55,576 rentable square feet. Overall, the properties are 95% leased.

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The HFF seniors housing team representing the borrower was led by Senior Managing Directors Chad Lavender and Ryan Maconachy, as well as Associate Director Sarah Anderson.

HMC, along with its sponsored funds, develops, manages and owns multifamily, industrial, office, retail and self-storage properties throughout the United States.

Dekel Provides $16.1 Million for Development of 130-Unit Assisted Living Community in Thousand Oaks

The equity fund of Los Angeles-based bank Dekel Capital, Dekel Strategic Investors (DSI), has provided $16.1 million to develop Sage Mountain Senior Living, a 130-unit, Class-A assisted living and memory care community in Thousand Oaks, California.

Construction of the 58,154-square-foot community began in September, with completion scheduled in early 2018. The building will have 98 assisted living units and 32 memory care units, according to Multi-Housing News.

This is the second assisted living and memory care JV Equity investment DSI has funded. Dekel Capital founded DSI in January 2014, and has invested more than $100 million through the platform to date.

Boston Capital Invests in Affordable Multifamily Community for Seniors in Arizona

Boston-based real estate investment and advisory firm Boston Capital is investing in the rehabilitation of Kingman Heights Apartments and Amy Neal Retirement Center, two existing section 8 apartment communities in Kingman, Arizona. The dollar value of the investment was not disclosed.

The two communities, which will include 57 affordable units for seniors who are 62 years old and older, will be rehabilitated using tax credit equity from the Low Income Housing Tax Credit (LIHTC) program.

The Foundation for Senior Living (FSL), a non-profit group that provides seniors with the services required to age in place, is Boston Capital’s general partner in the investment. This investment represents Boston Capital’s sixth partnership with FSL.

Amy Neal Retirement Center consists of four one-story buildings with four studios and 20 one-bedroom units, as well as a community building. Kingman Heights is made up of seven one-story buildings with 33 one-bedroom units, as well as a community building. Post-rehabilitation, units will feature central air conditioning, ceiling fans, blinds, patios and microwaves. New smoke detectors, doors, windows, cabinets, flooring, kitchen appliances and roll-in showers will also be included.

Additionally, after the renovation, each property’s community amenities will include a part-time resident services coordinator, on-site management, a community room, a laundry room, a multi-media center, a BBQ area and carports.

The apartments will be available to seniors who earn 60% or less than the area median income.

Capital Funding Group Announces Two Loan Closings for Skilled Nursing Facility

Baltimore-based Capital Funding Group recently announced the closing of two loans for an 82-bed skilled nursing facility in Lockport, New York.

Capital Funding, LLC closed a $6.683 million bridge loan for the acquisition of Briody Healthcare Facility on September 1, 2016. Director of Real Estate Finance Craig Casagrande originated the loan.

Capital Finance, LLC also closed a $1 million working capital line of credit for the skilled nursing facility. The loan, which closed on September 1, 2016, was originated by Brian Stromberg.

Berkadia Secures $11.1 Million Financing for Seniors’ Affordable Housing in Philadelphia

Berkadia, on behalf of Casa Farnese Inc., has secured $11.1 million in financing for Philadelphia’s first affordable housing community for seniors, Casa Farnese. 

Berkadia was supervised by PRD Management, the property’s management firm.

Proceeds of the loan were utilized to renovate the 18-story, 288-unit property prior to its upcoming 50th anniversary on Oct. 5. Berkadia Managing Director Brian Campbell and Senior Managing Director Kevin Kozminske arranged two loans through the firm’s partnership with HUD: a $4.11 million loan under section 241(a) to finance improvements to the community, and a $7.04 million loan under section 207/223(f). The non-recourse loans offer 90% loan-to-cost financing and 35-year amortization schedules.

The financing permits the owners to finish a $9.7 million rehabilitation project on the property, while also meeting the first mortgage’s payment terms. Gilbane Building Co., acting as general contractor, finalized the renovations to the 18-story, 288-unit building in March.

CBRE Arranges Portfolio Acquisition Financing for Two Senior Living Communities in Georgia

CBRE National Senior Housing recently arranged both the portfolio sale and portfolio acquisition financing for Arbor Terrace at East Cobb in Marietta, Georgia, and Arbor Terrace Peachtree City in Peachtree City, Georgia.

Arbor Terrace Peachtree City is in Peachtree City, Georgia, and has 112 independent living and 34 assisted living units; Arbor Terrace at East Cobb is located in Marietta, Georgia, and consists of 56 assisted living and 34 memory care units.

CBRE National Senior Housing Executive Vice President Lisa Widmier and CBRE National Senior Housing Executive Vice President Matthew Whitlock represented the seller, senior housing investment company Capitol Seniors Housing (“CSH”). At present, CSH owns 23 properties with 2,300 total units.

Aron Will, vice chairman of CBRE National Senior Housing, arranged the acquisition financing on behalf of the buyer, Arcapita Investment Management, a global company that specializes in originating alternative investments.

The Arbor Company will continue to manage both communities.

Through its Freddie Mac Seller Servicer direct lending program, CBRE secured a $50.525 million, fixed-rate loan which includes a 7-year term with 36 months of interest only.

The Arbor Company, a regional seniors housing owner/operator based in Atlanta, currently operates 25 properties in Illinois, Maryland, Georgia, New Jersey, Texas, Virginia, Pennsylvania, Florida, Tennessee, North Carolina, and South Carolina. 

Written by Mary Kate Nelson

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