Senior Housing Finance Activity: Capital One’s $551 Million Loan to KAREA

Capital One Provides Loans Totaling $551 Million to Kayne Anderson

Bethesda, Maryland-based Capital One has provided two loans—a $251 million bridge loan and a $300 million Freddie Mac seniors housing revolving credit facility—to Kayne Anderson Real Estate Advisors (KAREA) for its purchase of Orlando-based Sentio Healthcare Properties, a public, non-traded real estate investment trust (REIT).

KAREA is part of Kayne Anderson Capital Advisors, a private equity real estate investment firm with $30 billion in assets under management, specializing in seniors housing, medical office, student housing and self-storage.

KAREA has invested in 73 private-pay senior living properties since September 2013, spanning a total of 10,000 communities and representing more than $2.6 billion in transaction value.

CBRE Capital Markets Arranges Construction Financing for Belmont Village Lincoln Park

Los Angeles-based CBRE Capital Markets has arranged a construction financing loan on behalf of the joint venture between Houston-based senior living provider Belmont Village Senior Living and Chicago-based real estate private equity firm Harrison Street Real Estate Capital LLC for Belmont Village Lincoln Park.

CBRE secured a non-recourse, four-year floating rate loan from a national bank. Vice Chairman of CBRE National Senior Housing Aron will arranged the loan.

Belmont Village Lincoln Park will be a Class-A, 149-unit assisted living and memory care community associated with the redevelopment of the Children’s Memorial Hospital in Lincoln Park. Upon completion, the property will be operated by Belmont Village.

BMO Harris Acts as Sole Lender of Construction Lending Facility for Belmont Village, Harrison Street Real Estate Capital

Chicago-based BMO Harris Healthcare Real Estate Finance group has closed a construction and mini-permanent financing for Belmont Village Senior Living for Belmont Village Lincoln Park.

KeyBank Provides $28.5 Million Mortgage Loan for Pennsylvania Senior Housing Community

KeyBank Real Estate Capital has arranged a $28.5 million Freddie Mac floating rate mortgage loan for Paoli, Pennsylvania-based Daylesford Crossing, a senior living community operated by Springfield, Pennsylvania-based Sage Senior Living.

The Class-A senior housing community is located 16 miles northwest of Philadelphia and was built in 2015. The community totals 78 units: 64 assisted living and 14 memory care.

Carolyn Nazdin of KeyBank’s Healthcare Group arranged the financing, with a seven-year term, three-year interest only period and 30-year amortization schedule.

The permanent loan refinanced an existing KeyBank construction loan arranged in 2014 by Grant Saunders of KeyBank’s Tampa, Florida office.

KeyBank is headquartered in Cleveland, Ohio.

HJ Sims Provides $3.8 Million to Finance Arizona Senior Housing Community

Fairfield, Connecticut-based HJ Sims has completed a $3.8 million equity financing for The Watermark at Continental Ranch, a soon-to-be-built 99-unit assisted living and memory care community in Marana, Arizona.

HJ Sims financed the development of Watermark, which will be owned and developed by a joint venture (JV) between affiliates of Link Development, LLC and Tuscon, Arizona-based Watermark Retirement Communities, LLC, which will also operate Continental Ranch.

Watermark Retirement Communities is a privately owned company operating assisted living, memory care, life care communities and CCRCs across 20 states.

Sims structured a preferred equity investment that was classified as contributed capital on behalf of the JV owners, fulfilling regulatory requirements for the senior construction lender. The investment was structured with a capped all-in return to the preferred equity holders.

A new entity, LW Development Funding I, LLC, was formed to issue $3.8 million of taxable bonds. The bonds were successfully sold to Sims’ high net worth accredited investors. The proceeds from the bonds were used by LW Development Funding I, LLC to fund the preferred equity investment to the JV owners.

Hunt Mortgage Group Provides $3.1 Million FHA/HUD Loan Facility to Georgia Assisted Living Community

Commercial real estate firm Hunt Mortgage Group has provided a $3.1 million FHA/HUD loan facility to refinance Country Gardens in Union City, Georgia.

Country Gardens is operated by Senior Solutions Management Group, a Suwanee, Georgia-based senior care provider offering assisted living, memory care, independent living, residential and home care across Tennessee, Georgia and South Carolina.

Country Gardens is a 50-bed assisted living community with memory care services. The property spans 26,731 square feet in two stories. There are nine units consisting of 12 beds located in the secured memory-care portion of the community; the remaining 31 units, consisting of 37 beds, are located on the first and second floor of the north wing, and the second floor of the western wing.

Written by Carlo Calma