Transactions & Financings: New Senior Issues Fortress Affiliate $40 Million In Stock, NHI Lends $180 Million

New Senior Investment Group Issues Fortress Affiliate $40 Million in Series A Preferred Stock

New Senior Investment Group (NYSE: SNR) filed an 8-K form with the Securities and Exchange Commission (SEC) indicating the New York City-based real estate investment trust (REIT) issued 400,000 shares of Series A Preferred Stock to FIG LLC, an affiliate of Fortress Investment Group (NYSE: FIG). The stock has a preferred liquidation price of $40 million.

This stock issuance is part of New Senior’s plan to internalize its operations and give itself separation from FIG, as first reported last November.

NHI Provides $180 Million Loan For Arizona CCRC

National Health Investors (NYSE: NHI) agreed to lend up to $180 million to recapitalize and finance the expansion of Sagewood, a 567-unit Continuing Care Retirement Community (CCRC) in Phoenix, Arizona. At closing, NHI funded $86.8 million of this commitment. The community currently consists of 316 independent living units, 44 assisted living units, 28 memory care units and 78 skilled nursing beds, and the project will fund the completion of a 101-unit independent living expansion. The existing independent units have approached 100% occupancy in 2018 and the Phase II expansion independent living units are 96% presold.

The borrower is LCS-Westminster Partnership IV, a joint venture between Westminster Capital and LCS. The financing includes a $118.8 million senior loan and a $61.2 million construction loan with proceeds from the entrance fees of the new expansion to be applied to the construction loan balance. The average entrance fee per unit is projected to be $700,000. The senior loan (Note A) has a 10-year maturity and 7.25% interest rate that escalates 10 basis points per year after the third year of the loan. The construction loan (Note B) has a 5-year maturity and an 8.5% interest rate. The notes were funded from borrowings on NHI’s revolving credit facility.

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Bridge Investment Group Affiliate Acquires Somerby Senior Living

Bridge Seniors Housing Fund Manager, an affiliate of Bridge Investment Group, purchased Somerby Senior Living Services and its nine-property portfolio of seniors housing assets. The purchase of Somerby will allow Bridge to offer a more vertically integrated property management model within the seniors housing space. The Somerby portfolio represents a collection of modern, Class-A communities, located in prime Southeastern markets, and are a mix of independent living, assisted living, and memory care units. As of the end of 2018, the portfolio was 94% occupied.

Meridian Senior Living Acquires Two Rhode Island Senior Communities

Meridian Senior Living acquired two senior living communities in Rhode Island. Chapel Hill, located in Cumberland, offers 108 assisted living beds and 30 skilled nursing beds. Smithfield Woods, located in Smithfield, offers 41 assisted living beds, 33 memory care beds, and 60 skilled nursing beds.

MidCap Financial Arranges Two Loans Totaling $41 Million

MidCap Financial completed two first mortgages totaling $41 million. The first loan, for $35 million, was on behalf of Atlas Senior Living for the acquisition of a 167-unit independent living, assisted living and memory care community in Lexington, Kentucky.

The second loan, for $6.25 million, was arranged on behalf of a joint venture between Artemis Real Estate Partners, a private equity real estate investment firm, and Fort Worth, Texas-based Civitas Senior Living.
The loan is secured by The Avenues of Park Forest, a newly renovated senior living community.

CBRE Facilitates Sale, Arranges Financing For Houston Senior Housing Facility

CBRE National Senior Housing Executive Vice President Lisa Widmier represented the seller in the disposition of The Village Portfolio, a two-property, 224-unit assisted living and memory care portfolio in Houston. CBRE Vice Chairman Aron Will and First Vice President Austin Sacco arranged acquisition financing for the buyer, a joint venture between Bridgewood Property Company and an institutional investor, in the form of two separate five-year, non recourse floating rate loans on an interest only basis from a debt fund.

ESI Facilitates Sale of South Dakota Assisted Living Facility

Evans Senior Investments (ESI) represented the seller in the $7.1 million sale of Somerset Court Rapid City, an 87-unit, 100% private pay community in Rapid City, South Dakota. The buyer was a private REIT based in North Dakota.

Lancaster Pollard Provides Bridge Loan For Texas Assisted Living Property

Lancaster Pollard provided a bridge loan to Mayberry Gardens to acquire an assisted living and memory care community in Denton, Texas that it operated since opening. The loan financed 100% of the acquisition costs and will be completely refinanced with a HUD loan during the first half of 2019. Kyle Hemminger and Chris Mauger led the bridge financing for Lancaster Pollard.

HFF Facilitates $5.3 Million Sale of Florida Assisted Living Site

Holiday Fenoglio Fowler (HFF) Executive Managing Director Manuel de Zárraga, Managing Director Jaret Turkell, Senior Director Maurice Habif and Associate Simon Banke represented the seller and developer, Codina Partners, in the $5.3 million sale of a 1.3-acre assisted living site in Downtown Doral, a 250-acre mixed-use community in Doral, Florida.

The buyer is Goray Development Company.

Evergreen Real Estate Group to Manage Ohio, Illinois Senior Housing Communities

Chicago-based Evergreen Real Estate Group was retained to manage nine affordable housing communities comprising a total of 1,071 units across Illinois, Kansas, Ohio and Wisconsin. The assignments include a mix of affordable housing for families, seniors and people with disabilities, expanding Evergreen’s management portfolio to more than 8,500 units throughout the U.S.

The portfolio includes Carter Manor Apartments, a 270-unit affordable community for seniors and disabled individuals in Cleveland; The Martha Washington Apartments, a 104-unit affordable senior community in Chicago; and Martin Avenue Apartments, a 122-unit affordable senior community in Naperville, Illinois.

Senior Housing Management Assumes Management of Three Minnesota Memory Care Facilities

Cedar Rapids, Iowa-based Senior Housing Management assumed management and operations of two adjacent Birchwood Cottage memory care communities in Owatonna, Minnesota, and one in Mankato, Minnesota. The management transition was completed on Jan. 1, 2019.

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