Senior Housing Finance Activity: PointClickCare Raises $85 Million

PointClickCare Closes $85 Million Financing Round, Postpones Potential IPO

PointClickCare Technologies announced on Wednesday that it has closed an $85 million financing round led by San Francisco-based public and private investment firm Dragoneer Investment Group. JMI Equity also participated in the round.

PointClickCare, based in Mississauga, Ontario, Canada, provides cloud-based software and services for the senior living and long-term post-acute care markets.

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With this financing in place, PointClickCare plans to remain a private company—at least for now.

“We are not ruling out the public markets as a financing option to fuel future expansion,” PointClickCare founder and CEO Mike Wessinger said in a press release. “But our track record of successfully delivering sustainable growth has put us in an enviable position for any private technology company—to execute an IPO only when the market conditions offer the most favorable opportunity for our business, our customers and our investors. In other words, we can afford to wait until the timing is right for us.”

PointClickCare’s partnership with Dragoneer Investment Group, meanwhile, will allow PointClickCare “to more quickly take advantage of ways to help our customers thrive given the unique challenges facing the global health care industry,” Wessinger added.

Capital Funding Closes $11.84 Million HUD Refinancing in Wisconsin

Capital Funding, LLC recently announced the successful closing of an $11.84 million HUD refinancing for a skilled nursing and assisted living community in Wisconsin on Dec. 12. Capital Funding also provided the original bridge acquisition loan, which closed in December 2014.

Director of Real Estate Finance Patrick McGovern originated the two loans. Capital Funding, LLC acted as the only lender.

Ziegler Closes $130.18 Million Financing for Texas CCRC

Chicago-based speciality investment bank Ziegler recently announced the successful closing of the $126 million tax-exempt, non-rated Series 2016A and $3.8 million non-rated, taxable Series 2016B fixed-rate Bond issues for Texas not-for-profit corporation C. C. Young Memorial Home.

Proceeds from the Series 2016 Bonds will be utilized to finance the first phase of a master plan of the CCRC, which involves the construction of The Vista; redeeming a $4 million interim bank loan utilized to finance predevelopment activities; reimbursing C.C. Young Memorial Home for prior capital expenditures and fund future capital expenditures; funding capitalized interest on the Series 2016A and Series 2016B Bonds; funding separate accounts of the debt service reserve fund for each series of bonds; and paying the costs of issuance. The Series 2016 Bonds are being issued on a parity with the outstanding Series 1998, Series 2009 and Series 2007 Bonds.

C. C. Young Memorial Home owns and operates a continuing care retirement community (CCRC) in Dallas, Texas. The CCRC comprises The Thomas, made up of 37 independent living units and two guest units housed in multiple single-story buildings; The Overlook, a six-story building with of 108 independent living units, related common areas and underground parking; The Asbury, a three-story building consisting of 78 independent living units and associated common areas; The Blanton Assisted Living Center, a five-story building with 75 assisted living units and related common areas; The Cove Memory Care Center, a single-story building with 40 memory-support beds and associated common areas; The Lawther Point Health Center, which has 117 skilled nursing beds and related common areas across two buildings, Lawther Point East and Lawther Point West; and The Point, Center for Arts and Education, a building which houses a small theater, classrooms, a chapel and an auditorium.

The master plan for the CCRC involves increasing the number of assisted living, independent living and memory support care units while repositioning the current skilled nursing capacity. It is expected that the master plan will be implemented in three phases over an eight-year period. The first phase involves the construction of a new, nine-story integrated transitional living center called The Vista that will offer assisted living, memory support care and skilled nursing services to residents of the CCRC, in addition to outpatient services.

The Vista is expected to initially have 45 additional assisted living beds; 128 skilled nursing beds to replace the existing Health Center; 48 assisted living memory care beds to replace The Cove; a rehab center with an indoor therapy pool and walking track; community spaces including a café lounge, gift shop, chapel, wander garden, patios, and an underground parking garage; an adult day center; and administrative offices and employee center.

Love Funding Closes $21.9 Million in Loans for Michigan Senior Housing Communities

Washington, D.C.-based Love Funding recently secured a $17.3 million loan to acquire and renovate a 202-unit affordable housing development in Ann Arbor, Michigan, called Cranbrook Senior Tower.

Love Funding Midwest Regional Director Bruce Gerhart secured the loan via a pilot program at the U.S. Department of Housing and Urban Development (HUD) meant to expedite processing times for the acquisition or refinance of affordable rental apartments with low-income housing tax credits (LIHTCs). The financing was supplemented with 4% LIHTCs, while Illinois-based Midland States Bank provided a bridge loan to fund the tax credit equity.

Cranbrook Senior Tower is open to residents 62 or older and operates under a project-based housing assistance payments (HAP) contract that provides rent subsidies to individuals meeting low-income thresholds. As part of the deal, the property’s current HAP contract was renewed for another 20-year term. Additionally, over $3.5 million of the financing proceeds will be put toward renovating the property, including a new HVAC system, generator, appliances, siding and carpeting.

The buyer in the deal is GCD-Cranbrook Limited Dividend Housing Association LLC, whose active principals are Ginosko Development Company CFO Mary Tischler and Ginosko President Amin A. Irving.

Love Funding also recently announced the closing of a $4.6 million loan to refinance a 40-bed assisted living and memory care community in Lapeer, Michigan, called Devonshire Retirement Village. The community is owned and operated by Grand Rapids, Michigan-based Leisure Living Management, Inc.

Love Funding Midwest Regional Director Bruce Gerhart secured the loan via the U.S. Department of Housing and Urban Development’s 232/223(f) loan insurance program.

HJ Sims Announces Refinancing for Presbyterian Retirement Communities in Florida

Fairfield, Connecticut-based privately held investment bank and wealth management firm HJ Sims recently announced the refinancing of Presbyterian Retirement Communities (PRC), doing business as Westminster Communities of Florida, the 10th largest U.S. nonprofit operator of senior living communities.

PRC engaged HJ Sims in August 2016 to advance refund its 2010A bonds and fund as much as $45 million of new money for capital projects. HJ Sims collaborated with PRC to decrease the overall cost of capital and annual debt service and increase debt capacity; use additional debt capacity to borrow new money without impacting credit rating; and provide improvements to financial covenants.

To meet PRC’s financing objectives, HJ Sims collaborated with the Obligated Group to produce several refinancing structures, monitor the capital market environment throughout the financing process and adjust as conditions changed to maximize annual net present value savings on the refunding portion of the issue. HJ Sims limited aggregate maximum annual debt service for the proposed 2016 issue in combination with PRC’s existing debt.

HJ Sims successfully closed the $160.365 million issue on Dec. 15, 2016 with an all in true-interest-cost of 4.27%. On a present value basis, the refunding saves PRC about $9.421 million, with actual aggregate savings of about $34.8 million through the life of the prior bonds.

As of result of the financing, PRC was able to reduce overall cost of capital; provide additional debt capacity and maintain a Fitch rating of A-; and reduce its debt service reserve fund requirement for the 2016, saving PRC about $2.35 million in borrowing costs from the previous requirement. Improvements were made to the covenants, enabling PRC to transfer cash money or assets in and out of the obligated group with less restrictions.

Capital One Provides $14 Million for Senior Housing in Georgia

Capital One recently provided a $14.4 million HUD 221 fixed-rate construction and permanent loan for Sterling at Candler Village, an affordable, 170-unit senior housing community that will be built in Decatur, Georgia.

The transaction was originated by Capital One Senior Vice President Carolyn Whatley, who specializes in HUD financing.

The two-building Chandler Village will feature both one- and two-bedroom floorplans. Of the 170 units, 136 will be allocated to households earning up to 60% of the area median income. The remaining 34 units will be allocated to households earning as much as 50% of the area median income. Chandler Village is being developed by The Benoit Group, partnered with the Housing Authority of DeKalb County.

Beyond the HUD financing, additional funding came from tax exempt bonds issued by the Housing Authority of DeKalb County and underwritten by Stifel, Nicolaus & Company Inc.; a subordinate HOME loan funded by DeKalb County Community Department;  low income housing tax credits allocated by the Georgia Department of Community Affairs; and project-based rental assistance issued by the Housing Authority of the City of Atlanta. Meanwhile, AHA entered into an intergovernmental agreement with the Housing Authority of DeKalb County to administer PBRA for Sterling at Candler Village.

Greystone’s Seniors Housing Lending Team Closes $204 Million in Financing in Fourth Quarter of 2016

Greystone, a real estate investment, lending and advisory company, announced its seniors housing lending team closed more than $200 million in financing during the fourth quarter of 2016. The $204.7 million in capital represents various financing platforms, such as agency loans, debt placement with national banks, and mezzanine financing for both acquisition, refinancing and new construction of 1,699 total multifamily and seniors housing units.

Greystone’s seniors housing lending team, led by Scott Kavel, Cary Tremper and Neal Raburn, completed deals for 10 different clients from October 2016 through December 2016, including $138 million in Fannie Mae financing. Greystone also provided or arranged FHA, bridge and mezzanine loans, and arranged $35 million in national bank loans during the quarter.

KeyBank Provides $84.7 Million in Financing for Skilled Nursing Portfolio in Texas

KeyBank Real Estate Capital recently provided a total of $84.7 million in FHA financing for a six-property, 722-bed skilled nursing portfolio in Texas.

The facilities include Ebony Lake Nursing and Rehabilitation in Brownsville, Texas; Brownsville Nursing and Rehabilitation in Brownsville, Texas; Weslaco Nursing and Rehabilitation in Weslaco, Texas; Harlingen Nursing and Rehabilitation in Harlingen, Texas; and Edinburgh Nursing and Rehabilitation and Windsor Arbor View both in Edinburgh, Texas.

John Randolph of Key’s Commercial Mortgage Group arranged the financing via the FHA 232/223(f) mortgage insurance program. The proceeds of the loan were utilized to refinance existing debt.

CBRE Arranges $12.2 Million Loan for Senior Housing Community in Michigan

CBRE National Senior Housing Vice Chairman Aron Will arranged $12.2 million in acquisition financing on behalf of Capitol Seniors Housing for University Living, a 75-unit assisted living and memory care community in Ann Arbor, Michigan. After closing, the property will continue to be operated by St. Louis, Missouri-based regional senior housing operator and investor Provision Living.

CBRE, via its Freddie Mac Seller Servicer direct lending program, secured the 10 year floating-rate loan with 72 months of interest only.

Written by Mary Kate Nelson

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