Senior Housing Finance Activity: Grandbridge, Lancaster Pollard

Grandbridge Facilitates Funding of $125 Million Seniors Housing Portfolio

Grandbridge Real Estate Capital’s Seniors Housing and Healthcare Finance Group recently facilitated the purchase of a $125 million seniors housing portfolio secured by four independent living seniors housing communities in four states.

Funding for the assumption and supplemental loans was funded via Fannie Mae’s DUS® Seniors Housing loan product, Grandbridge said in a 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.

“We went from application to closing in 45 days,” Vice President Meredith Davis added.

Grandbridge’s dedicated Seniors Housing and Healthcare Finance Group offers nonrecourse acquisition/bridge, construction and permanent financing options to seniors housing owners across the country. The team has closed over $6 billion in seniors housing loans, advisory transactions and sales since 2003.


Lancaster Pollard Helps Capri Communities Refinance Senior Housing Communities

Lancaster Pollard recently helped Waukesha, Wisconsin-based senior living provider Capri Communities with two refinancings utilizing the FHA Sec. 232/223(f) program.

Capri was looking to refinance two of its communities, according to a Lancaster Pollard press release. For the first—a 72-unit assisted living and memory care community in Germantown, Wisconsin, called The Gables of Germantown—Lancaster Pollard secured a $13.8 million loan insured by the FHA Sec. 232/223(f) program that had a low fixed interest rate and 35-year term.

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Along with refinancing the community’s debt, the loan funded more than $425,000 in repairs and an initial deposit to its replacement reserve, Lancaster Pollard said.

In a different transaction, Lancaster Pollard secured a $9.5 million loan to refinance The Polonaise at Wilson Commons, a 75-unit assisted living community in Milwaukee. The loan is insured by the FHA Sec. 232/223(f) program.

The loan has a 35-year term, a low fixed interest rate and funds more than $525,000 in repairs, along with an initial deposit to replacement reserve and refinancing the existing debt. Brad Competty and Brendan Healy led both transactions for Lancaster Pollard.

Berkadia Announces $23.8 Million Financing of Florida Senior Housing Community

Berkadia’s Senior Housing and Healthcare Group recently announced the $23.8 million financing of St. Augustine Plantation, a 100-unit, 115-bed senior housing community in Tallahassee, Florida. At present, the community is 97% occupied.

Los Angeles-based Lowe Enterprises Investors (LEI), in a joint venture with a foreign investment client, recently acquired St. Augustine Plantation from real estate company Capital Health Group, LLC (CHG). Berkadia’s Jeff Heath, Christopher Honn and Mike McKee arranged financing for the transaction. The LEI investment team was led by John Gaghan, while Kenneth Assiran and Holliday Fengolio Fowler led the seller’s team. CHG is expected to maintain a minority ownership in the assisted living and memory care community.

The partners intend to expand St. Augustine Plantation by 24 memory care beds, improve common areas, and add a wellness center for rehabilitation and recreation that will be managed by Florida State University.

CHG’s current senior housing portfolio includes 34 operating facilities and seven communities under construction with about 4,000 beds. The portfolio is located nationally across 12 states and features assisted living, independent living and memory care communities.

Housing & Healthcare Finance Secures $27 Million for New York Senior Housing Community

Housing & Healthcare Finance (HHC Finance) has arranged $27 million in refinancing for a 195-bed independent living and assisted living community in Yonkers, New York. The community is the only one in the area that has the Medicaid Assisted Living Program.

The borrower was undisclosed. HHC Finance arranged the financing through HUD with an interest rate of less than 3%.

Freddie Mac Prices $518 Million Seniors Housing Multifamily K Certificates

Freddie Mac Multifamily recently priced an offering of Structured Pass-Through Certificates (K Certificates) backed exclusively by multifamily mortgages on seniors housing properties, according to a press release. Freddie Mac offered about $518 million in K Certificates (K-S06 Certificates) that are planned to settle on or about Oct. 21, 2016. This represents Freddie Mac’s sixth K Certificate offering backed by seniors housing exclusively.

Wells Fargo Securities, LLC acted as the lead manager and book runner, and Jefferies LLC, Morgan Stanley & Co. LLC, Multi-Bank Securities, Inc., and PNC Capital Markets LLC acted as the co-managers.

The K-S06 Certificates are not rated, and include two senior principal and interest classes and one interest only class. The K-S06 Certificates are backed by corresponding classes from the FREMF 2016-KS06 Mortgage Trust and guaranteed by Freddie Mac, according to a press release. The KS06 Mortgage Trust will also issue class B and R certificates, which will be subordinate to the classes backing the K-S06 Certificates and which Freddie Mac will not guarantee.

Written by Mary Kate Nelson

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