Senior Housing Finance Activity: Lancaster Pollard, Capital One

Trilogy Health Services Refinances SNF and Senior Health Portfolio For $158.4 Million

Trilogy Health Services refinanced a portfolio of 10 senior health campuses in Indiana, which offer independent living, assisted living, memory care, rehabilitation and skilled nursing options.

The loan, totaling $158.4 million, puts in place a permanent debt structure with a low interest rate, and pays off existing bridge loans and a real estate revolver that were used to purchase the properties.

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Lancaster Pollard, a Columbus, Ohio-based commercial real estate mortgage and investment banking firm focused on the senior living and health care sectors, assisted in securing the loan. Chris Blanda, senior vice president, led the transaction.

Louisville, Kentucky-based Trilogy operates senior health communities throughout Kentucky, Indiana, Ohio and Michigan.

SunTrust Bank Provides $50.6 Million Loan for Pinnacle Living

Atlanta-based SunTrust Bank has provided a $50.6 million loan to Richmond, Virginia-based Pinnacle Living, a life plan community provider, for the expansion of its 90-acre Cedarfield community in Richmond.

The expansion involves upgrades to dining areas, including the addition of a new pub, marketplace and fine-dining options; new a health and wellness center; increased parking spaces; and upgrades to the existing facility and outdoor gathering spaces.

Construction is already underway for the dining enhancements. Pinnacle expects to break ground on its health and wellness center in the fall. 

Aztec Group Secures $5 Million for Florida-based Senior Communities

Miami-based Aztec Group Inc. has secured $5.1 million to refinance two Memory Lane Cottages assisted living communities in Tampa and Oviedo, Florida.

Florida Community Bank provided the financing. Loan terms include a five-year term, with one year of interest-only payments, followed by a 25-year amortization schedule.

The Memory Lane Cottages are luxury communities totaling a combined 40 beds. The borrower entity is comprised of a joint venture between Mayan Properties, Facility Investments and National Healthcare Associates, Inc.

Capital One Provides Loans for Oregon, Washington, North Carolina-Based Senior Care Communities

Bethesda, Maryland-based Capital One has provided a $41.1 million first mortgage and a $5 million senior credit facility for Oregon-based Prestige Care, an owner and operator of independent living, assisted living, memory care and skilled nursing facilities. 

The company is utilizing the mortgage loan to acquire four senior housing and skilled nursing facilities in Washington and Idaho: Colonial Vista in Wenatchee, Washington; Hearthstone Cottage of Ellensburg in Ellensburg, Washington; Hearthstone Cottage of East Wenatchee in East Wenatchee, Washington; and Karcher Estates in Nampa, Idaho. 

Prestige Care is also utilizing the loan to refinance three facilities it owns in Oregon and Washington: Coast Fork Nursing in Cottage Grove, Oregon; Oregon City in Oregon City, Oregon; and Prestige Assisted Living at Hazel Dell in Vancouver, Washington.

Together, the facilities total 751 units.

Capital One also provided a $16.3 million loan to PruittHealth to refinance a portfolio of three SNFs and an intermediate care facility for individuals with mental retardation (ICF-MR), as well as a SNF in North Carolina.

Georgia-based PruittHealth has more than 90 post-acute, skilled nursing and assisted living communities in the southeastern U.S.

Jones Lang LaSalle Multifamily Provides Fannie Mae Loan to Brookdale Senior Living

Chicago-based Jones Lang LaSalle Multifamily, LLC has provided a $975 million loan to Brentwood, Tennessee-based Brookdale Senior Living, in accordance with Fannie Mae’s Delegated Underwriting and Servicing (DUS) Program. 

The credit facility refinanced $618.9 million of outstanding mortgage debt, including $389.9 million of debt, slated to mature in 2018.

The loans are secured by first mortgages on 51 communities. Sixty percent of the principal amount bears interest at a fixed rate, with one half of such amount bearing interest at 4.43% and maturing in 2024 and the other one half bearing interest at 4.47% and maturing in 2027. 

Forty percent of the principal amount bears interest at a variable rate equal to the 30-day LIBOR plus a margin of 241.5 basis points and matures in 2027. The credit facility also has certain “borrow-up” and substitution provisions, as well as flexibility for expansion of, and repositioning of services provided at, the mortgaged properties.

Written by Carlo Calma

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