Senior Housing Finance Activity: Cushman & Wakefield, Capital Funding Group

Cushman & Wakefield Arranges $23.3 Million in Financing for LCB Senior Living

Cushman & Wakefield Senior Housing Capital Markets, in its exclusive representation of Norwood, Massachusetts-based senior housing owner/operator LCB Senior Living, LLC, recently arranged $23.27 million in construction financing for LCB’s 13th senior housing development, The Residence at Stony Ford in Stamford, Connecticut.

Currently under development, the Residence at Stony Ford is a 104-apartment/112-bed, five-story independent living, assisted living and memory care community scheduled to open in the second quarter of 2018. Once completed, The Residence at Stony Ford will have 79 fully licensed independent living and assisted living apartments, as well as 25 memory care apartments. M&T Bank won a competitive process to provide $23.27 million in construction financing for a joint venture between Virtus Real Estate Capital and LCB, according to a press release.

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The Cushman & Wakefield team involved in the transactions included Managing Director Jay Wagner, Executive Managing Director Rick Swartz, Director James Dooley, Senior Director Aaron Rosenzweig and Associate Caryn Miller.

To date, LCB operates 1,607 senior housing beds with a further 450 currently under construction and an active pipeline of four more projects scheduled to break ground this year.

Harborview Capital Partners Closes More Than $200 Million in Loans in December 2016

Commercial real estate finance, equity and advisory firm Harborview Capital Partners closed more than $200 million of health care loans in December 2016 for various independent living, assisted living, memory care and skilled nursing facilities in Illinois, Kentucky, Michigan, Massachusetts, California, New York, Tennessee, Wisconsin and Texas. 

Harborview’s Eric Gorlechen, Eli Kutner, Avi Begun, Ephraim Kutner, David Nussbaum, Jonathan Kutner and Rafael Sod originated the transactions.

Capital Funding Group Closes $63 Million in Bridge Loans for New York Skilled Nursing Facilities

Baltimore, Maryland-based Capital Funding Group recently closed two bridge loans for two skilled nursing facilities in New York. Capital Funding, LLC worked as co-lender to close the two loans: a $30.41 million bridge-to-HUD loan for a 200-bed facility in Nassau County, and a $32.54 million bridge loan for a 240-bed facility in Westchester County.

The loans were utilized to recapitalize under-leveraged assets and refinance existing debt. CFG plans to immediately submit HUD applications to refinance the bridge loans at long-term, fixed rates, as HUD is no longer mandating the two-year seasoning period if the required underwriting metrics are met, according to a press release.

Director of Real Estate Finance Craig Casagrande originated both loans, which closed on Nov. 30.

Lancaster Pollard Closes $8.4 Million Refinancing for Senior Housing Community in Pennsylvania

Lancaster Pollard recently closed an $8.4 million refinancing through the FHA Sec. 232/223(f) program for the Bryn Mawr Terrace, a senior living community in Bryn Mawr, Pennsylvania. 

Ken Gould led the transaction for Lancaster Pollard, according to a press release.

The community is managed by Main Line Senior Care and owned by a 501(c)(3) organization that was searching for a long-term, non-recourse financing solution for its debt capital. The organization was able to lock a long-term fixed rate, which enabled the organization to pay off the entire outstanding bank note balance and fund more than $700,000 in an initial deposit to the community’s replacement reserve account.

MidCap Financial Refinances Independent Living Community in Arizona

Bethesda, Maryland-based commercial finance company MidCap Financial, LLC recently closed a transaction with Eugene, Oregon-based senior housing operator Compass Senior Living to refinance a 50-unit independent living community in Payson, Arizona.

Specifically, MidCap Financial provided a $4.5 million first mortgage floating rate loan with a three-year term. The loan refinanced existing debt and provided for the recapture of equity, originally utilized to purchase the property in 2014.

Compass currently operates 13 senior housing communities located throughout California, New Mexico, Arizona, Oregon and Wisconsin.

Dekel Capital Arranges $25 Million Financing for Assisted Living and Memory Care Community in Arizona

Dekel Capital, a Los Angeles-based real estate merchant bank that specializes in sourcing and placing debt and equity for active middle market commercial real estate investors and developers, recently placed $25 million in financing for the development and construction of Sage Tucson, a 106-unit, Class A assisted living and memory care community in Tucson, Arizona.

The deal was capitalized with a $17 million construction loan arranged via Dekel Capital’s advisory practice and $8.4 million JV-Equity funded by Dekel Strategic Investors (DSI), the firm’s proprietary equity fund, according to a press release.

Sage Tucson represents DSI’s first senior housing investment in Arizona and its third JV-equity investment with development partner, Willis Development. 

Construction broke ground on Sage Tucson in late 2016, and it’s expected to take 18 months. Of the 106 total units, 86 will be assisted living units and 20 will be memory care units.

Written by Mary Kate Nelson

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