Senior Housing Finance Activity: Greystone, HFF

CBRE Secures Millions in Loans for The Waters Senior Living

CBRE National Senior Housing Vice Chairman Aron Will recently arranged acquisition financing on behalf of a joint venture between Minnetonka, Minnesota-based senior living developer/owner/operator The Waters Senior Living and an institutional client for The Waters of Edina, a 139-unit, Class A assisted living and memory care community in Edina, Minnesota.

The Waters of Edina has 97 assisted living units and 42 memory care units. CBRE secured a $33.15 million, seven-year, fixed-rate loan with 18 months of interest only from a life insurance firm.

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The Waters Senior Living currently has 10 communities and 1,233 units under ownership, management, or under development throughout Minnesota, Pennsylvania, Wisconsin and Ohio.

Aron Will also recently arranged construction financing on behalf of a joint venture between The Waters Senior Living and Chicago-based real estate investment management firm Harrison Street Real Estate Capital, LLC for The Waters of Wexford. The 143-unit, to-be-built, Class A  personal care, catered living and memory care community will be in Marshall, Pennsylvania.

Specifically, CBRE secured a $27.1 million, five-year floating-rate loan with 42 months of interest only from a regional bank.

Greystone Doubles FHA Volume

Real estate lending, investment, and advisory company Greystone has seen its pipeline of FHA loans roughly double in the last 12 months, according to Mordecai Rosenberg, head of the firm’s FHA lending business.

The current deal pipeline for FHA totals about $3 billion, with roughly $750 million of that being health care-related deals, including senior housing, Rosenberg told Senior Housing News.

The growth can be attributed to two factors, he said. One is a very active bridge loan program.

“A number of acquisitions that we’ve funded over the past two years are now making their way into the pipeline,” Rosenberg said.

Also, a new proprietary operating system for FHA, as well as a new client-facing app, have been implemented over the past one-and-a-half years. This has cut execution time in half, according to Rosenberg. Among the changes is a drag-and-drop interface through which a client can automatically upload a document to a central system, at which point document checklists on the Greystone side automatically are updated.

The outlook for FHA loans is good, Rosenberg added, thanks in part to changes to the LEAN program that are anticipated to go into effect.

Greystone recently appointed a new senior underwriter for the FHA group, to play a “key role” in handling the growing volume.

Greystone, Eastern Union Secure $105 Million Acquisition Loan for Kentucky Portfolio

Greystone & Co. and Eastern Union Funding recently arranged a $105 million loan for a New York-based senior housing owner-operator to partially fund the $120 million acquisition of one assisted living community and 12 skilled nursing facilities in Kentucky.

The seller was not made public. The portfolio, which was 95% occupied at the time of the sale, has 1,239 beds.

The loan has flexible prepayment terms to enable an FHA exit.

Eastern Union’s C.J. Danziger and Phil Krispin, along with Greystone’s Jonathan Coven, secured the financing from multiple regional banks in the eastern United States.

Ziegler Closes $34.9 Million Financing for Canterbury Health Care, Inc.

Chicago-based speciality investment bank Ziegler successfully closed the $34.94 million Series 2016, tax-exempt, fixed-rate financing for Michigan-based not-for-profit Canterbury Health Care, Inc., a new client to Ziegler.

Canterbury Health Care, Inc. was incorporated in 1991 for the purpose of providing housing, health care and related services to seniors. The company currently owns and operates a 255-unit rental continuing care retirement community (CCRC) in Waterford, Michigan called Canterbury-on-the-Lake (COTL). Day-to-day operations at COTL have been managed by LCS since 1995.

Last year, COTL’s Board authorized implementation of a Repositioning Plan that was designed and will be implemented by Greenbrier Development. The Repositioning Plan involves plans to build and equip a new single-story, 24,500-square-foot, 32-bed licensed assisted living memory care community; build a new, enclosed, two-story corridor structure connecting the new assisted living and memory care building to the existing community center building; and resize and renovate the existing skilled-nursing facility to transform 24 semi-private beds into 12 private bed units, which results in a reduction of nursing beds, Ziegler said.

To avoid paying prevailing wage labor for construction expenses resulting in more than $1 million in savings, COTL chose to issue the Series 2016 Bonds in three separate series: (1) Michigan Strategic Fund in the amount of $14.7 million (tax-exempt) for which proceeds will pay project expenses, fund a debt service reserve fund and pay the cost of issuance; (2) Waterford Township Economic Development Corporation in the amount of $19.08 million (tax-exempt) for which proceeds will refund outstanding bank loans, fund a debt service reserve fund and pay costs of issuance and; (3) Waterford Township Economic Development Corporation in the amount of $1.16 million (federally taxable) for which proceeds will pay a part of the expenses to terminate the swap, fund a debt service reserve fund and pay costs of issuance.

The new money and refunding components are amortized together to form level debt service, Ziegler noted. The final maturity of the EDC Series 2016B Taxable Bonds is in 2020. The EDC Series 2016A Bonds and the MSF Series 2016 Bonds amortize over 35 years until 2051. The arbitrage yield on The Series 2016 Bonds is 5.008%.

HFF Arranges $29.5 Million in Construction Financing for New York Active Adult Development

Holliday Fenoglio Fowler, L.P. (NYSE: HF) recently announced that it has arranged $29.5 million in construction financing for Phase II of The Vineyards at Blue Point, an active adult condominium community for individuals 55 years old and older in Blue Point, New York.

Working exclusively on behalf of regional real estate development company Ornstein Leyton Company (OLC) and diversified real estate investment management firm Latus Partners, HFF arranged the construction loan with Bank of the Ozarks.

Prior to this most recent announcement, HFF helped OLC arrange the relationship with Latus Partners and secure initial land acquisition financing. HFF then helped the developers secure construction financing for the development of Phase I of the community, which included 74 units, model units, a clubhouse and the entry gatehouse. Phase II will include 84 additional units.

Upon completion, The Vineyards at Blue Point will have 280 units and encompass 44 buildings with single-level flats and townhouse. Community amenities include a bocce court and a heated outdoor swimming pool, as well as with the Vineyards Club, which houses several social rooms, a fitness center and lounge space.

The HFF team representing the developer was led by Senior Managing Director Evan Pariser.

Developer Secures Financing, Construction Starts on Mixed-Use Project to Include Affordable Seniors Housing

The developer of an affordable housing complex in Vineland, New Jersey, recently secured $17.8 million in financing to build 71 affordable apartments for seniors and to build ground floor retail space underneath them.

Vineland-based Eastern Pacific Development, LLC, the developer of the project in partnership with the nonprofit social services agency Gateway Community Action Partnership, recently closed on the financing to purchase the land and construct Landis Square Senior Apartments. The project is currently under construction and is scheduled to be finished in approximately one year.

Financing for the project includes capital contributions of $13.9 million from an investor for the purchase of federal low income housing tax credits awarded by the New Jersey Housing and Mortgage Finance Agency through a competitive process. The project will also be funded from conventional construction and permanent loans by private banks. Jeffrey S. Beenstock of law firm Ballard Spahr’s New Jersey office represented Eastern Pacific Development in closing the financing and purchase of the land.

Eastern Pacific Development specializes in community redevelopment and affordable housing. Gateway Community Action Partnership is the designated Community Action Program (CAP) for several counties in New Jersey, as well as Philadelphia. The agency helps moderate- and low-income residents identify and overcome obstacles to self-sufficiency.

Capital Funding Group Announces Two Loan Closings for Madison Creek Partners

Baltimore, Maryland-based Capital Funding Group recently announced two loan closings for Madison Creek Partners.

First, Capital Funding, LLC collaborated with co-lenders to close a $30.4 million Bridge-to-HUD loan to refinance a portfolio of seven communities located across Colorado and California. Together, the communities have 460 licensed beds.

The loan was originated by Director of Real Estate Finance Patrick McGovern, and it closed on Nov. 10, 2016. Capital Funding, LLC acted as agent in the deal.

Additionally, Capital Finance, LLC provided a $9 million working capital line of credit to Madison Creek Partners. The loan, which also closed on Nov. 10, was originated by Brian Stromberg, vice president.

CBRE Secures $7.4 Million Acquisition Loan for Virginia Senior Housing Community 

Aron Will, Vice Chairman of CBRE National Senior Housing, recently arranged a $7.4 million, five-year, floating-rate loan for a joint venture between New York-based senior housing real estate investment trust (REIT) Care Investment Trust and affiliates of Fairfax, Virginia-based senior housing operator Inspirit Senior Living.

The money will be used to acquire Hilltop House Assisted Living, a 73-unit independent living, assisted living and memory care community in Winchester, Virginia. Inspirit plans operate the community.

Harborview Closes $16.2 Million Loan for Senior Housing Community In California

New York-based commercial real estate finance, equity and advisory firm Harborview Capital Partners recently closed a $16.2 million construction loan for a 110-bed assisted living and memory care community in Nipomo, California.

The name of the community and the borrower were not disclosed.

Harborview Senior Originator Avi Begun closed the transaction.

Written by Mary Kate Nelson and Tim Mullaney

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