Transactions & Financings: AllyAlign’s $10M Funding Round; $201M Financing for Harbor’s Edge

AllyAlign Health closes $10M funding round

AllyAlign Health, a developer and administrator of Medicare Advantage (MA) special needs plans benefiting long-term care providers, closed a $10 million strategic funding round, led by McKesson Ventures, as the Richmond, Virginia-based firm looks to expand. And senior living is in its sights, AllyAlign President President Amy Kaszak told Senior Housing News.

This latest round brings AllyAlign’s total capital raised to over $41 million. With recently announced Medicare Advantage policy changes opening up new opportunities for senior living providers, AllyAlign plans to use proceeds from the latest funding round to find opportunities in senior living, such as the expansion of telehealth, now included as supplemental benefits for MA plans, Kaszak said.

“In many ways I think the growth into assisted living, memory care and even independent living, that is where we see kind of the next in many ways the final bastion or last hold out of true fee for service,” she said. “We see managed care starting to move there and opportunities to really change the way care is delivered in senior living settings.”null

HJ Sims arranges $201 million financing for Virginia CCRC expansion

HJ Sims completed a $201.1 million financing package for Harbor’s Edge, a CCRC in Norfolk, Virginia. The proceeds are earmarked toward construction of a new tower on the site.

Harbor’s Edge was originally built in 2002 in cooperation with the City of Norfolk as part of a master development, “Fort Norfolk Neighborhood.” Harbor’s Edge accepted 10% deposits for the River Tower starting October 2017 and achieved 70% in presales by September 2018. Sims concurrently ran a bank request for a proposals process for a portion of the costs while developing the terms and offering documents for the fixed rate bonds. The strong balance sheet and operational history of Harbor’s Edge garnered a number of attractive proposals for bank financing that would be repaid first from initial entrance fee proceeds received from River Tower Residents. A challenge with the appraisal during the banks’ due diligence phase required a portion of the initial entrance fee bonds to be offered on a convertible subordinate basis to fixed rate bondholders.

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Sims coordinated with two commercial banks, including SunTrust Bank and TD Bank, to arrange a $100 million draw-down bank loan. SunTrust served as administrative agent and provided $65 million in financing to support the transaction. Sims exclusively underwrote $101,145,000 of fixed rate bonds, priced on March 21, achieving $500,000+ in savings on annual debt service from the feasibility study assumptions. The complex hybrid financing structure saved Harbor’s Edge $20 million in net debt service and reduced projected maximum annual debt service by approximately $1.5 million. The bonds were distributed among a diverse pool of institutional and private client investors.

Greystone secures $24 million refinancing for New Jersey assisted living facility

Greystone Vice President DJ Elefant originated a $24 million Fannie Mae loan to refinance a 138-unit assisted living and memory care community in New Jersey. Elefant, out of Greystone’s New York office, originated the loan on behalf of Sage Healthcare Partners. Greystone Managing Director Neal Raburn and his team out of the firm’s Atlanta office provided support in structuring, underwriting and closing the transaction.

The $23,995,000 Fannie Mae loan carries a 10-year term and 30-year amortization with a two-year interest-only period.

TMG completes $6.8 million sale of California independent living community

The Mogharebi Group (TMG) completed the $6.775 million sale of Bernadine Senior Independent Living, a four-story, 71-unit independent living community in Ontario, California. TMG’s Alex Mogharebi, Otto Ozen, and Bryan LaBar represented the buyer, a Los Angeles-based private investor, and the seller, an Inland Empire acquisition group.

Cambridge arranges $4.6 million loan for Texas assisted living, memory care community

Cambridge Realty Capital Companies arranged a $4.6 million HUD lean loan to refinance Traditions Senior Living & Memory Care, a 54-bed assisted living and memory care facility, in Sherman, Texas.

The fully-amortized, 30-year loan was arranged for the owner, a Texas limited liability company, using the HUD Section 232 pursuant to Section 223(f) funding program, which is used 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.

Additional reporting by Maggie Flynn.


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