Senior Housing Finance Activity: iBorrow, Greystone

iBorrow Provides $16.5 Million Loan for California Assisted Living Facilities

Los Angeles-based iBorrow, a private direct lender for commercial real estate, has provided a $16.5 million loan for two assisted living communities in the Los Angeles suburbs of Tarzana and Orange County.

The first property is an 88-unit, 50,054-square-foot facility, and the second is an 81-unit, 40,207-square-foot facility.

Both properties are private pay and were built in 1974, but renovated in 2016. The names of the communities, or how the loans are intended for use, was not disclosed.

The borrower is a local health care proprietor, who has had experience in developing structured finance products for high-net-worth individuals, closely held businesses and hedge funds.

CBRE Arranges Financing for Ohio, California and New York-Based Senior Living Communities

CBRE National Senior Housing has arranged the asset sale and acquisition financing for Northgate Park, a 124-unit assisted living community located in Cincinnati, Ohio.

CBRE, through its Freddie Mac Seller Servicer direct lending program, secured a seven-year floating rate loan with 42 months of interest only.

Lisa Widmier, executive vice president of CBRE National Senior Housing, represented the seller. Aron Will, vice chairman of CBRE National Senior Housing, arranged the acquisition financing on behalf of CPF Living Communities, a senior living private equity fund.

Ultimately, the property will be operated by Grace Management, a wholly owned subsidiary and management arm of CPF Living.

In addition, CBRE arranged $29.8 million in financing for Westmont Town Court, a 144-unit independent living, assisted living and memory care community in the San Diego suburb of Escondido.

The borrower is Westmont Living, which purchased the property in 2012. Since acquiring the property, Westmont implemented a three-year capital improvement plan that updated the property and added the 22-unit memory care wing. The property is 92% occupied.

Will and Andrew Behrens of CBRE Multifamily Institutional Group arranged the 10-year, fixed-rate loan with 60 months of interest-only payments through Freddie Mac. The use of the funds was not disclosed.

Will also arranged supplemental financing on behalf of a joint venture that includes The Freshwater Group/Watermark Retirement Communities for The Fountains Portfolio, a 3,804 bed, 15-property rental and entrance-fee continuing care retirement community (CCRC) portfolio located across 11 states.

In 2015, CBRE secured a $410 million, seven-year loan for the portfolio. The supplemental loan consists of seven rental and entrance-fee CCRCs across six states and comprises 1,308 independent living beds; 541 assisted living beds; 97 memory care beds; and 373 skilled nursing beds, totaling 2,319 beds.

CBRE, through its Freddie Mac Seller Servicer direct lending program, secured a $75.4 million fixed rate supplemental loan in conjunction with the first mortgage originated in 2015. The total debt encumbrance on the portfolio now totals $485.4 million.

The portfolio will continue to be operated by Watermark. 

Lancaster Pollard Completes Financing and Advising Activities

Lancaster Pollard has arranged two Fannie Mae loans totaling $57.1 million for seniors housing communities in Honolulu and the Tucson, Arizona, suburb of Green Valley.

The first transaction totaled $51.2 million, which refinanced construction debt for The Plaza at Waikiki in Honolulu. MW Group owns the property, which was built in 2015. The community has been named Hawaii’s best senior living facility by The Honolulu Star Advertiser for three consecutive years, according to Lancaster Pollard.

Jason Dopoulos, Doug Harper and Casey Moore of Lancaster Pollard led the transaction.

In the second transaction, Lancaster Pollard assisted Frontier Management with the $5.85 million refinancing of a 52-unit memory care community in Green Valley. The 15-year loan refinanced maturing debt.

Harper and Moore led the effort for Lancaster Pollard on the second closing.

In addition, Lancaster Pollard’s mergers and acquisitions team, a unit of the Columbus, Ohio-based real estate mortgage and investment banking firm, recently advised Hawkeye Care Centers on the divestiture of six Iowa senior living facilities.

A majority of the portfolio’s 551 beds are skilled nursing, but three of the facilities contain a small portion of assisted living or independent living. The six facilities are located in separate communities across Iowa, have a quality mix above 50% on average, and possess quality care metrics, as four of the six facilities possess a five-star overall rating from the Centers for Medicaid & Medicare Services (CMS).

The total purchase price was $29.5 million, which equates to $53,500 per bed. The facilities were purchased by a Summit Healthcare real estate investment trust (REIT), which entered into a triple-net lease agreement with Accura HealthCare, an Iowa-based senior care provider. With this acquisition, Accura HealthCare now operates 18 facilities in Iowa.

Chad Elliott, managing director of mergers and acquisitions at Lancaster Pollard; Quintin Harris, senior vice president responsible for healthcare clients located in Minnesota, Iowa, and Nebraska; and Kevin Laidlaw, vice president of mergers and acquisitions, led the transaction for Lancaster Pollard.

Lancaster Pollard also assisted with the refinance of Arbor Oaks, a 70-unit assisted living facility in Andover, Minnesota.

The firm obtained a $10 million loan insured by the FHA Sec. 232/223(f) program to refinance the facility’s existing debt. Lancaster Pollard was able to process the application and account for Tax Increment Financing (TIF) associated with the property. The loan features a fixed interest rate, 35-year term, and will provide debt service savings. Quintin Harris led the transaction for Lancaster Pollard.

Finally, Lancaster Pollard recently assisted First Atlantic Healthcare Corporation with bridge financing for Portland Center for Assisted Living, an 85-unit/170-bed assisted living, board and care, and memory care (MC) community located in Portland, Maine.

The facility was built in 1964 and First Atlantic sought financing to refinance the existing debt and fund repairs and reserves. Lancaster Pollard facilitated a $15.3 million, equity-out bridge loan which was subsequently taken out by the FHA Sec. 232/223(f) program. The new permanent financing has a fixed interest rate, provides approximately $760,000 for repairs and funds a $260,000 deposit to the replacement reserves. Aaron Becker led the transaction for Lancaster Pollard.

Greystone Arranges $50 Million in Construction Financing

New York City-based Greystone, a real estate lending, investment and advisory company, arranged $50.03 million in total financing for the construction of two Class-A senior living communities in Arizona and North Carolina. Greystone worked closely with regional banks, which provided the debt for Fort Worth-based Aspens Senior Living.

A $25,767,899 loan for the construction of The Aspens at Mariposa Point in the Phoenix, Arizona metro area was provided by a publicly traded bank.The 55-plus community will comprise 204 units, as well as amenities including a bistro and theater. The project is a joint venture between Aspens Senior Living, McFarlin Group and Pennybacker Capital. Construction began on the community in May 2017.

A separate $24,258,106 loan for the construction of The Aspens at Bedford Falls in the Raleigh, North Carolina metro area was provided by a regional bank. The 62-plus community, a joint venture between Aspens Senior Living and Pennybacker Capital, will offer 182 units.

HFF Announces Sale of and Financing for Phoenix-Area Seniors Housing Community

Houston-based Holliday Fenoglio Fowler, L.P. (HFF) announced the sale of and financing for The Heritage Tradition, a 303-unit, Class A+ seniors housing community in the Del Webb master planned community of Sun City West, Arizona.

The HFF team marketed the property on behalf of the undisclosed seller, and procured the buyer, Senior Resource Group, LLC (SRG). SRG will also operate the property. Additionally, the HFF team worked on the new owner’s behalf to secure a 10-year, fixed-rate acquisition loan through a life insurance company.

The Heritage Tradition totals 303 units, of which 227 are independent living apartments, 35 are independent living cottages and 41 are assisted living units. Completed in three phases between 2000 and 2006, the institutionally maintained property has undergone $3.8 million in capital improvements since 2013.

The HFF investment advisory team included senior managing directors Ryan Maconachy and Chad Lavender and senior director Ryan Fitzpatrick.

HFF’s debt placement team consisted of director Sarah Anderson.

Written by Carlo Calma