Senior Housing Finance Activity: Walker & Dunlop, HHC Finance

KeyBank Closes Acquisition Loan for Three Senior Housing Communities in Pennsylvania

KeyBank Real Estate Capital’s healthcare platform recently closed an acquisition loan for Baltimore-based Capital Health Group to purchase three senior housing communities located in Southeast Pennsylvania. Together, the communities have more than 500 units.

Shortly after purchasing the portfolio, Capital Health Group refinanced Key’s acquisition/bridge loan via a series of three separate Fannie Mae financings originated by KeyBank’s Commercial Mortgage Group.

The loans provide Capital Health with low-cost, long-term flexible financing on a non-recourse basis.

Jay Jordan and Grant Saunders from Key’s Healthcare Group originated the initial acquisition financing, which enabled a quick execution of the acquisition. Charlie Shoop of Key’s Commercial Mortgage Group arranged the Fannie Mae financing, which closed about 30 days after the closing of the acquisition loan.

CBRE Arranges $72.5 Million in Acquisition Financing for Five-Property Senior Housing Portfolio in Washington and Oregon

CBRE’s Matthew Whitlock and Aron Will recently arranged $72.5 million in acquisition financing on behalf of public, non-traded real estate investment trust (REIT) NorthStar Healthcare Income for a five-property portfolio made up of 453 independent and assisted living units located in Oregon and Washington. After closing, the portfolio will still be operated by Salem, Oregon-based Bonaventure Senior Living.

CBRE Multifamily Capital originated the 10-year, fixed-rate loan with 24 months interest only via its Fannie Mae DUS Multifamily loan origination program. 

Arcadia Communities Uses Lancaster Pollard’s Propero Equity Structure to Finance New Development

Lancaster Pollard’s Propero Seniors Housing Equity Fund funded hard and soft costs totaling about $12.2 million for Arcadia Communities’ planned 79-unit senior housing community in Bowling Green, Kentucky. The transaction closed in January.

Chris Blanda was the lead for Lancaster Pollard’s investment banking platform, and Chris Mauger led the transaction for Propero.

Walker & Dunlop Arranges $35.8 Million Acquisition Loan for Florida Senior Housing Community

Walker & Dunlop (NYSE: WD) recently arranged a $35.8 million Freddie Mac Immediate Delivery Tax Exempt Loan for Smith & Henzy Advisory Group. The money will be utilized to purchase and renovate Lake Delray Apartments, an affordable, 404-unit senior housing community in Delray Beach, Florida, that’s managed by The Delray Housing Group.

The capital was provided by the Palm Beach Housing Finance Authority.

The 17-year acquisition loan was initially structured as HUD tax-exempt bonds, and then converted to Freddie Mac to gain more flexible terms. The loan involves two years of interest-only payments, followed by a 35-year amortization schedule. 

The Walker & Dunlop origination team was led by Frank Baldasare.

HHC Finance Closes $43.7 Million in HUD Transactions So Far in 2017

Housing and Healthcare Finance (HHC Finance) has closed three HUD transactions for almost $43.7 million in business so far in 2017.

Specifically, the company closed a $23 million loan with an interest rate in the low 3’s for a 218-bed/95-unit assisted living facility in Nassau County, New York. Additionally, the firm closed a $14.7 million HUD refinance of a 217-bed skilled nursing facility in Greenwich, Connecticut. The borrower, which recently purchased the 30-year old building, obtained a 35-year term and a fixed interest rate under 3.5%. HHC Finance also closed a $5.8 million HUD refinance for a 39-unit, 84-bed skilled nursing facility in Michigan.

Cushman & Wakefield Senior Housing Arranges $9 Million Construction Financing in Yuma, Arizona

Cushman & Wakefield Senior Housing Capital Markets, as advisor to Mission Senior Living, recently arranged a $9 million construction loan for the development of River Valley Estates, a 66,000-square-foot, 88-unit assisted living and memory care community in Yuma, Arizona. Contemporary Healthcare provided the financing.

River Valley Estates will be located on a 5.25-acre site and will have 56 assisted living units and 32 memory care units in a single-story building. The development will represent Mission Senior Living’s third ground-up development and the fifth property in its portfolio.

The Cushman & Wakefield team involved in the transaction included Executive Managing Director Richard Swartz, Executive Director Jay Wagner, Senior Director Aaron Rosenzweig and Director James Dooley.

KeyBank Arranges $12.4 Million in Financing for Affordable Senior Housing Community in Connecticut

KeyBank Real Estate Capital recently provided $12.4 million in FHA financing for Cedar Court Apartments, a 91-unit affordable senior housing community located in Norwalk, Connecticut. 

Kelly Frank of Key’s Community Development Lending and Investment Group and Jeff Rodman of Key’s Commercial Mortgage Group arranged the construction financing, which will be utilized to substantially rehabilitate the community.

Love Funding Secures $6.8 Million Bridge Loan for Assisted Living Community in South Jordan, Utah

Love Funding recently announced the closing of a $6.8 million bridge loan for the construction of Our House of South Jordan, a new assisted living and memory care center currently under development in South Jordan, Utah.

The 42,000-square-foot community will have 62 beds and will be operated by SAL Management Group LLC.

Love Funding Senior Director James Vanar of the Los Angeles office secured the bridge financing. The funding was provided by Love Funding parent company Midland States Bank.

Walker & Dunlop Closes $222 Million Portfolio of Interest Rate Reduction Loans

Walker & Dunlop, Inc. recently closed a $222 million portfolio through the U.S. Department of Housing and Urban Development’s (HUD) Interest Rate Reduction (IRR) program. The undisclosed borrower utilized the IRR program to secure lower interest rates on 30 existing HUD loans backed by health care and senior living properties. 

Walker & Dunlop Senior Vice Presidents Michael Vaughn and Kevin Giusti led the Walker & Dunlop team on the transaction.

Written by Mary Kate Nelson