PMRG in Talks to Merge with Madison Marquette
Texas-based PMRG, a privately held commercial real estate firm specializing in property management, project leasing investment management and development services, and Washington, D.C.-based Madison Marquette, a privately held commercial real estate investment and operating company, are in talks to merge. Closing is expected in the next 30 days.
“We anticipate a highly-complimentary combination that significantly expands the capabilities of both firms,” Amer Hammour, chairman of Madison Marquette, said in a press release. “Madison Marquette’s investment management as well as retail and mixed-use development, marketing and management expertise would join PMRG’s office, medical, industrial and multi-family capabilities to provide leadership across all asset classes to our clients and investment partners.” PMRG’s dominance in the southern US is a perfect match for Madison’s presence in primary gateway markets on both coasts. The companies’ shared clients include many of the top institutional owners and investors in the industry.
The leadership of both companies will remain in place, and the combined company will maintain their primary office locations.
PMRG recently announced the acquisition of land for the development of a 200-unit senior living community in McKinney, Texas.
Walker & Dunlop Arranges $17 Million Loan for Assisted Living Community in Indiana
Walker & Dunlop, Inc. arranged an approximately $17.3 million loan for Oasis at 56th, a 124-unit affordable assisted living community in Indianapolis, Indiana. The transaction is one of few assisted living communities in the United States financed with a Low-Income Tax Credit (LIHTC) from the Department of Housing and Urban Development (HUD).
Matt Baptiste and Jeff Lawrence led the Walker & Dunlop team in structuring the financing for the developer, Integral Community Development.
Through HUD’s New Construction program, the team provided a 40-year loan with a fixed rate, exceptional terms, and an interest-only construction period, according to a press release. The team also coordinated the time-sensitive loan closing with the developer’s LIHTC application to guarantee that 85% of the community’s units remain affordable at 60% area median income.
Oasis at 56th is anticipated to open in early 2019 with 73 one-bedroom and 51 studio units.
Ziegler Closes $72.65 Million Financing for HumanGood
Chicago-based specialty investment bank Ziegler announced the successful closing of the $72.65 million Series 2018 fixed-rate financing for the HumanGood National Obligated Group.
HumanGood is a holding company that acts as the corporate parent to HumanGood NorCal and HumanGood SoCal.
This transaction will join The Terraces of Phoenix (HumanGood Arizona) and Judson Park (HumanGood Washington), both subsidiaries of HumanGood, into a single obligated group, with the two communities co-obligated for the 2018 Bonds. The new entity will be called the HumanGood National Obligated Group, reflecting the fact that these two communities are outside of California, HumanGood’s biggest market. In the future, the National Obligated Group may include additional non-California operations.
In connection with establishing the National Obligated Group, the borrower will refinance two outstanding tax-exempt bank placements, one at each community, and will refinance a part of subordinate debt owed to HumanGood NorCal.
The financing comprises two tax-exempt, fixed-rate bond issues, a tax-exempt variable rate bank placement, as well as a taxable variable rate bank placement. The aggregate $72,646,000 of bonds plus equity contributed toward the financing will be utilized to: (i) refund the HumanGood Arizona Series 2015 Bonds; (ii) refund the HumanGood Washington Series 2012 Bonds; (iii) fund debt service reserve funds for the two fixed-rate issues; (iv) refinance $20 million in subordinate intercompany loans; (v) finance the termination of HumanGood Washington’s existing interest rate swap related to the Series 2012 Bonds; and (vi) pay costs of issuance.
The two fixed-rate bonds will be issued via the Washington State Housing Finance Commission and The Industrial Development Authority of the City of Glendale, Arizona, respectively, to refinance the existing debt at HumanGood Washington and a portion of existing debt at HumanGood Arizona. The two variable rate bank placements will be bought by one lending institution, Washington Federal Bank, with a tax-exempt series being issued through the Industrial Development Authority of the City of Glendale to refinance the balance of the HumanGood Arizona debt, and a taxable series being issued directly by the borrower to repay the aforementioned subordinate debt. The new capital structure will be made up of approximately 50% variable rate and 50% fixed-rate indebtedness, partially hedged by an interest rate cap bought in 2015.
“It has been exciting to see the HumanGood organization coalesce under the new brand, and move through the integration of predecessor companies and financings,” Mary Muñoz, Senior Managing Director in Ziegler’s senior living finance practice, said in a press release. “This transaction is a big step toward combining similar credits in less regulated, non-California markets, in order to simplify the corporate structure and streamline financial reporting. These actions will allow for cost savings and for more team energy to be directed toward HumanGood’s larger goals of reimagining the retirement community and fostering innovation in the senior living industry.”
Blue Moon Capital Partners Forms JV with Cedarbrook Senior Living
Senior housing private equity investor Blue Moon Capital Partners has established an acquisition joint venture with Cedarbrook Senior Living and purchased the Class A+ Cedarbrook of Bloomfield Hills in Bloomfield Hills, Michigan.
The 142-unit community offers independent living, assisted living, memory care and private-pay nursing care.
This investment represents the first by Blue Moon on behalf of its institutional separate account client looking for stabilized, core senior housing properties in proven markets. This acquisition also represents the second joint venture of Cedarbrook Senior Living and Blue Moon, the first of which is the development of Cedarbrook of Northville in Plymouth, Michigan.
Written by Mary Kate Nelson