Transactions & Financings: Ventas’ $1 Billion Paper Note Program, Welltower’s $400 Million MOB Acquisition

Ventas Announces $1 Billion Commercial Paper Note Program

Ventas (NYSE: VTR) established an unsecured paper note program in the U.S. Unsecured notes are loans that are not backed by an issuer’s assets. Instead, they are supported only by the borrower’s creditworthiness, and have a higher rate of return.

The program allows the Chicago-based health care real estate investment trust (REIT) to issue unsecured commercial paper notes up to an aggregate value of up to $1 billion at any time. Proceeds from the notes will be used for general corporate purposes, and will be fully and unconditionally guaranteed by Ventas.

Welltower Completes 23 Building, $400 Million Portfolio Acquisition

Welltower (NYSE: WELL) completed the $400 million acquisition of the Hammes Medical Office Portfolio, a 23-building, 979,000 square-foot portfolio affiliated with top tier health systems and other providers in nine states. The properties are located in 12 metro markets in Virginia, Washington, North Carolina, Illinois, New York, New Jersey, Pennsylvania, Alabama and Texas. JLL Healthcare Capital Markets Managing Directors Mindy Berman and Steve Leathers handled the sale on behalf of the seller, Milwaukee-based Hammes Partners.

Capital One Closes More Than $1 Billion Unitranche Commitments in 2018

Capital One’s ultraniche loan program, ULTra, closed on nearly $1.1 billion in n commitments to borrowers in the healthcare and services industries in 2018. The program, with HPS Investment Partners as its strategic co-investor, helps borrowers obtain first lien unitranche loans without a rating agency or a syndication process, thus providing clients with fast and reliable financing.

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HFF Facilitates Sale of 5 Senior Housing Properties in Southeastern U.S.

HFF completed the sale of five seniors housing properties totaling 325 units in Florida, Georgia and South Carolina. HFF Senior Directors Ross Sanders and David Fasano along with senior managing directors Ryan Maconachy and Chad Lavender, marketed the property on behalf of the seller, Principal Senior Living Group, which will continue to be operated by Principal Senior Living under the Benton House brand.

A national private equity fund purchased the offering free and clear of existing debt.

Brookhaven Industrial Development Agency Closes on Senior Housing Incentives Pact

The Brookhaven Industrial Development Agency (BIDA) closed on a package of economic incentives for two senior housing projects to be developed in Mt. Sinai, Long Island, New York. The agreement will assist Garden City-based The Engel Burman Group to develop a 120-unit Bristal Assisted Living facility and a 225-unit rental complex, including a clubhouse, for people age 55 and over on 24 acres in Mt. Sinai.

CBRE Arranges $35 Million Acquisition Financing Package

CBRE National Senior Housing Vice Chairman Aron Will, First Vice President Austin Sacco and Vice President Adam Mincberg arranged acquisition financing on behalf of a joint venture (the “Venture”) between Angelo Gordon & Co. (“Angelo Gordon”) and Auctus Capital Partners (“Auctus”) for The Point at Rockridge, a 148-unit assisted living and memory care community in Oakland, California. CBRE, through its Freddie Mac Seller Servicer direct lending program, secured a $35.23 million, seven-year, fixed rate loan with 48 months of interest only. Post close, Integral Senior Living (“ISL”)will continue to operate the community.

Valeo Groupe Americas Taps K4Connect as Strategic Technology Partner

Valeo Group Americas, an affiliate of Valeo Groupe, which offers multinational interests in both senior and student niche housing markets, and K4Connect announced this week a new partnership to bring the industry’s most advanced smart technology for senior living communities on the market, K4Community, to future Valeo Senior Communities.

K4Community will be built directly into Valeo Senior’s new Vineyard communities in Henderson, Nevada and Bluffton, South Carolina.

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