Transactions & Financings: Evans Senior Investments, Ziegler

ESI Arranges Sale of $38 Million Portfolio in Arkansas 

Evans Senior Investments (ESI) represented the sale of two senior housing communities in Bentonville and Rogers, Arkansas, for about $38 million.

The two communities have a total of 208 total senior housing units. At the time of the sale, the Bentonville community had just recently opened and was in the early stages of lease-up. The Rogers community, meanwhile, averaged 77% occupancy.

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ESI represented the seller, a regional owner/operator, in the deal. The buyer was a Chicago-based private equity group. The communities will be managed by a provider based in Texas.

HJ Sims Secures $52.1 Million Financing for Life Plan Community in Massachusetts

HJ Sims, a privately held investment bank and wealth management firm, closed a $52.1 million financing for new construction and a health center repositioning for Brookhaven at Lexington, a life plan community in Lexington, Massachusetts.

Total financing included a $36 million short-term, taxable construction loan expected to be repaid within two years after new independent living apartments open in 2020, as well as a $16.123 million taxable term loan maturing in 2030.

The construction loan pays interest at a floating rate to minimize interest cost. The current rate is less than 3%. The long-term debt features a fixed interest rate of 3.89% to shield Brookhaven from interest rate increases during the 12-year term.

Integral Senior Living Begins Managing Community in Arizona

California-based senior living provider Integral Senior Living was recently chosen to be the management company for Savanna House Assisted Living and Memory Care, a senior living community with 74 assisted living units and 42 memory care units in Gilbert, Arizona.

Ziegler Closes $41.4 Million Financing for Mary’s Woods at Marylhurst 

Ziegler recently closed the $41.4 million Series 2018 fixed-rate financing for Mary’s Woods at Marylhurst, Inc. in Lake Oswego, Oregon.

The community has 233 independent living apartments, 50 independent living villas, 55 assisted living apartments, 23 memory support suites, 26 residential care suites and five licensed skilled nursing suites.

Mary’s Woods plans to use the proceeds from the sale of the Series 2018 Bonds and other available funds to: (i) finance a portion of the construction, acquisition, development, improvement, renovation and equipping of an expansion project with respect to the corporations continuing care retirement community; (ii) pay a portion of the interest on the bonds during the construction of the project; (iii) fund a debt service reserve fund; and (iv) pay certain costs of issuance of the Bonds.

Mary’s Woods received an initial rating of “BB” by Fitch Ratings on its $175,065,000 Series 2017 Bonds. Mary’s Woods “BB” rating was affirmed in connection with the issuance of the 2018 Bonds. The 2018 Bonds will be issued with a combination of temporary and permanent series, made up of $16,700,000 tax-exempt serial and term bonds, amortizing over a 34-year period ending May 15, 2052.

American House to Manage Community in Chicago Suburb

Michigan-based American House Senior Living Communities has assumed management of Autumn Leaves of Orland Park, a 44-unit memory care community in Orland Park, Illinois. The community will be renamed American House Orland Park.

“We have targeted the Midwest as a growth market for the American House platform,” said Dale Watchowski, CEO, American House Senior Living Communities, and CEO, president and COO, REDICO, an affiliated company of American House. “Our growth strategy includes expanding our footprint through strategic acquisitions, developments and the third-party management of communities where we have interest or strategic relationships.”

Cambridge Arranges $10 Million HUD Loan to Refinance Community in New York

Cambridge Realty Capital Companies recently arranged a $10,372,300 HUD Lean loan to refinance a 92-bed independent living, assisted living and memory care community in East Northport, New York. The fully-amortized, 26-year loan was arranged for the owner, a New York limited liability company, using the HUD Section 232 pursuant to Section 223(f) funding program, which is utilized to refinance existing loans. Underwriting the transaction was Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-insured HUD loans.

Ziegler Closes $52 Million Financing for Life Plan Community in Kansas

Chicago-based speciality investment bank Ziegler closed a $52.03 million Series 2018 fixed-rate financing for Lakeview Village, Inc., a Kansas not-for-profit corporation that operates a “Type A” life plan community on a 100-acre campus in Lenexa, Kansas.

The 747-unit community has 342 independent living apartments, 207 independent living cottages and villas, 26 assisted living units, and 172 skilled nursing beds. Proceeds of the financing, together with other funds, are being utilized to: (i) refund Lakeview Village’s Series 2007 Bonds, (ii) fund debt service reserve funds, and (iii) pay costs of issuance. The Series 2018A Bonds are rated “BB+” with a stable outlook from Fitch Ratings. The Bond structure includes serial bonds through 2032 and two term bonds in 2034 and 2039 amortized for level debt service. The resulting average yield is 3.9% with an overall yield to maturity of 4.12%. As a result of this refinancing, Lakeview will save $455,000 per year, with net present value savings of $4.91 million, or 8.68% of the refunded bonds. The bonds are priced to a 7-year call at 103% declining to par.

Grandbridge Arranges $25.5 Million Acquisition Loan in Georgia

North Carolina-bsed Grandbridge Seniors Housing and Healthcare Finance Group recently arranged the closing of a $25.5 million acquisition loan secured by Arbor Terrace at Crabapple in Alpharetta, Georgia.

The 93-unit assisted living and memory care community was purchased by Focus Healthcare Partners’ dedicated Senior Housing Fund and will continue to be managed by The Arbor Company. Senior Vice President Richard Thomas and Vice President Meredith Davis originated the loan. Financing was provided by Fannie Mae utilizing their Green Rewards product.

HFF Announces Sale of Senior Housing Community in Georgia

Holliday Fenoglio Fowler, L.P. (HFF) recently announced the sale and financing for Village Park at Alpharetta, a newly built, 127-unit luxury senior living community in Alpharetta, Georgia.

The HFF team marketed the community on behalf of the seller, Village Park Senior Living. Privately owned alternative asset management firm Harbert Management Corporation purchased the offering free and clear of existing financing. Additionally, HFF procured floating-rate acquisition financing on the new owner’s behalf.

The HFF investment advisory team representing the seller included senior managing directors Chad Lavender, Ryan Maconachy and Jason Nettles.

HFF’s debt placement team representing the new owner included Director Sarah Anderson.

Chicago Pacific Founders Acquires 175-Unit Community in Dallas

Chicago Pacific Founders (CPF) and its subsidiaries, CPF Living Communities and Grace Management, Inc., announce the purchase of Churchill Estates, a 175-unit senior housing community in Dallas, Texas.

Terms of the deal were not disclosed. Going forward, Churchill Estates will be operated by Grace Management, Inc.

KeyBank Originates $26 Million in Financing for Community in Texas 

KeyBank Real Estate Capital recently originated a $26 million Freddie Mac, first mortgage loan for Churchill Estates of Lake Highlands, located in Dallas.

Charlie Shoop of Key’s Commercial Mortgage Group arranged the floating-rate loan with a seven-year term, four-year interest only period and 30-year amortization schedule. The loan was utilized to facilitate the acquisition of the community.

Ziegler Closes $110.48 Million Financing for RiverWoods Durham

Ziegler closed $110.48 million Series 2018 financing for RiverWoods Durham, a to-be-built life plan community in Durham, New Hampshire. The Series 2018 Bonds are made up of $52.98 million Series 2018A Permanent Bonds, $45.4 million Series 2018B Temporary Bonds and a $12.1 million Subordinated Note.

Both the Series 2018A&B Bonds are tax-exempt, non-bank qualified bonds and were issued via the New Hampshire Health and Educational Facilities Authority. RiverWoods Exeter (RWE) will be providing the taxable Subordinated Note.

Proceeds of the Series 2018A&B Bonds and Subordinated Note, along with additional available funds, will be utilized to finance the development of RWD. The community will have 150 independent living units, 24 assisted living units, 24 memory support units, and 24 skilled nursing beds. Specifically, proceeds of the financing, along with other available funds, will be utilized to (i) fund the construction of RWD; (ii) fund a working capital reserve fund; (iii) fund an operating reserve fund; and (iv) fund costs related to the transaction.

Ziegler was engaged as placement agent for the Series 2018A&B Bonds and distributed a bank credit solicitation package to several local, national and regional banks. Ultimately, TD Bank and SunTrust Bank were chosen as co-lead banks and People’s United Bank was selected as participant bank. The banks will be providing tax-exempt, non-bank qualified bonds for both series of debt. TD Bank and SunTrust Bank each will be providing 37.5% of the par amount of the Series 2018A&B Bonds with People’s United Bank providing the remaining 25% balance. The banks have offered a 10 year commitment on the Series 2018A Permanent Bonds and a 40-month commitment on the Series 2018B Bonds. RWD has entered into several swap contracts to manage interest rate risk.

Written by Mary Kate Nelson

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