Transactions & Financings: Ventas’ $490M Colony Capital Refinancing; BPM Senior Living Portfolio Sold

Ventas invests $490M in Colony Capital refinancing, announces $800M research development pipeline

Ventas (NYSE: VTR) announced four new developments, totaling $800 million in its university-based research and innovation business, all in partnership with Wexford Science & Technology (“Wexford”), the leading developer of university-focused real estate solutions. These investments are part of $1.5 billion research and innovation pipeline of expected new projects previously announced by Ventas.

These developments include:

  • The creation of a research, academic medicine and innovation hub anchored by a new relationship with University of Pittsburgh to house immunotherapy research in collaboration with the University of Pittsburgh Medical Center and co-located with UPMC’s Shadyside Hospital
  • A new development that expands the flourishing Philadelphia uCity Square Knowledge Community associated with the University of Pennsylvania
  • A state of the art College of Nursing and Health Professionals for Drexel University, also in uCity Square
  • The expansion of the Cortex Innovation Community associated with Washington University in St. Louis.

The projects are 40% pre-leased and are expected to generate over a 7% cash yield, and over an 8% GAAP yield, upon stabilization.

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Ventas also provided $490 million in financing to subsidiaries of Colony Capital (NYSE: CLNY) as part of a $1.52 billion refinancing of Colony’s prior $1.725 billion consolidated health care loan maturing in December 2019, which has been repaid and discharged in full.

The loan is supported by a diverse pool of collateral, including 158 U.S. healthcare properties comprised of medical office buildings, senior housing properties and other healthcare assets.

Entire 6-Property BPM Senior Living Portfolio Sold

Senior living pioneer Walter Bowen has sold the six-property portfolio of his company BPM Senior Living, consisting of 670 independent living, assisted living and memory care units in Oregon, California and Nevada.

Financial terms of the deal and the identity of the buyer were not publicly disclosed.

After getting his start in the burgeoning senior living industry in the 1980s, Bowen founded Portland, Oregon-based Regent in 1995. The company eventually went public and at one time was one of the 10 largest providers in the nation.

“I am proud to have played a part in the industry’s founding and development,” Bowen stated in a press release issued Tuesday. “Now, the time is right for me to leave assisted living for new opportunities. We will remain active in the development, ownership and operation of independent living communities.”

Five Star Board approves Senior Housing Properties Trust Restructuring

The Five Star Senior Housing (Nasdaq: FVE) board of directors approved the issuance of common stock to shareholders of Senior Housing Properties Trust (Nasdaq: SNH), which is a linchpin in restructuring the business arrangement between the two companies. Eighty-nine-point-two percent of Five Star’s board voted in favor of the issuance.

Five Star also secured a new $65 million credit facility. The facility was secured through Citibank, which was represented by Shearman & Sterling.

KeyBank arranges $111M financing package for Brookdale

KeyBank Real Estate Capital has secured an $111.1 million Freddie Mac loan for Brookdale Senior Living. The financing was secured in two tranches of 14 cross-collateralized senior housing properties across Arizona, Florida, Massachusetts, Maryland, Mississippi, New York, Oregon, Texas, Virginia and Washington. The portfolio totals 1,100 units and is comprised of 1,008 assisted living units and 92 memory care units.

KeyBank Commercial Mortgage Group Vice President Monique Bimler arranged the first mortgage financing under a 10-year split payment master note with a five-year interest-only period split between 40% floating rate and 60% fixed rate followed by a 30-year amortization schedule. The financing was used to refinance existing debt.

Live Oak Bank completes $17M in financing packages

Live Oak Bank’s (Nasdaq: LOB) senior care lending team completed the following loans:

  • Live Oak secured a $10 million loan for an undisclosed private investment firm to help capitalize the acquisition, renovation, and continued lease-up of a 90-unit assisted living and memory care community in a significant Texas market. The loan carries a five-year term, an interest-only period and flexible prepayment options.
  • Live Oak worked on behalf of Berengaria Development to secure a $6.9 million construction loan for the development of a 41-unit senior living project located in Mason, Ohio, which will consist of 23 assisted living units and 18 memory care units. The five-year balance sheet loan featured a 24-month interest-only period to accommodate construction and lease-up, followed by a 25-year amortization. The property will be leased to and operated by BrightStar Senior Living.

NHI provides $10.8M construction loan for Wisconsin assisted living/memory care community

National Health Investors (NYSE: NHI) is funding a $10.8 million construction loan for a 66-bed assisted living and memory care community located in Oshkosh, Wisconsin. Construction on the facility is expected to begin immediately after closing and to be completed within 12 months. The five-year loan will have an annual interest rate of 8.5% and two one-year renewals. Funding of this construction will be provided from periodic draws on NHI’s revolving credit facility. The new community will be managed by 41 Management, a growing Midwest operator which currently manages 28 buildings and has two more in development.

CBRE arranges $25M refinancing for California assisted living property

CBRE Multifamily Institutional Group Vice Chairman Andrew Behrens, CBRE National Senior Housing Vice Chairman Aron Will, First Vice President Austin Sacco and Vice President Adam Mincberg arranged a $24.5 million refinancing package on behalf of Westmont Living for The Inn at the Terraces of Chico, an 80-unit assisted living community in Chico, California.

CBRE secured the 10-year, fixed rate cash-out loan through its Freddie Mac Seller Servicer direct lending program. The loan has 72 months of interest only.

Regions Bank completes $13M acquisition financing for St. Louis assisted living facilities

Regions Bank Healthcare Real Estate Group Senior Vice President Amber Crosby and Managing Director Chris Honn arranged a $12.675 million acquisition loan for the purchase of two assisted living communities in the St. Louis metro area. The buyer is a joint venture between a Florida-based sponsor and a Missouri-based operator.

Blueprint completes sale of Phoenix senior housing portfolio

Blueprint Healthcare Real Estate Advisors Senior Associate Amy Sitzman completed the sale of two senior housing campuses totaling 384 beds/units located in the Phoenix, Arizona area. Blueprint handled the transaction on behalf of the seller, Sioux Falls, South Dakota-based The Evangelical Lutheran Good Samaritan Society. The buyer was an affiliate of The Ensign Group (Nasdaq: ENSG).

Helios Healthcare Advisors completes sale of Iowa senior housing campus

Helios Healthcare Advisors Managing Directors Bill Janis and Mario Wilson completed the sale of a 17-acre senior housing campus in southeast Iowa consisting of 91 independent living units, 51 assisted living units, and 10 memory care units. The buyer was an out-of-state investor partnering with an in-state operator to manage the property. The transaction marks the seller’s complete exit from the senior living sector.

Legend Senior Living assumes operations for former Brookdale Kansas facility

Legend Senior Living has assumed operations for a former Brookdale Senior Living (NYSE: BKD) property in Hutchinson, Kansas. The rechristened Legend of Hutchinson offers independent living, assisted living and memory care. It will become the eighth Kansas community for Wichita, Kansas-based Legend.

Toledo, Ohio-based health care real estate investment trust Welltower (NYSE: WELL) owns the real estate, and has entered into a triple-net lease structure with Legend on the community.

Cadence Living acquires Arizona site for new development

Cadence Living acquired a 7.7-acre site in Chandler, Arizona in a joint venture with Global Senior Housing. Scottsdale, Arizona-based Cadence will build a $46 million community, Cadence of Ocotillo, on the site featuring 191 new studio, one- and two-bedroom apartments for independent living, assisted living and memory care options.

Plains Commercial Leases Life Plan Campus

Plains Commercial Real Estate Principal Daniel Morris completed a lease at Davis Life Care, a five-building life plan campus in Pine Bluff, Arkansas offering assisted living, long-term care and skilled nursing that has been under operational and regulatory scrutiny.

The new tenant is a regional nonprofit operator. The deal includes long-term leases on three of the five buildings and a management agreement on the other two.

POAH adds to Chicago-area affordable senior apartment portfolio

Preservation of Affordable Housing Chicago (POAH-Chicago) expanded its portfolio of affordable senior apartments with the acquisitions of two buildings in Chicago’s West Side Austin neighborhood, and two other buildings in the Chicago suburb of Elgin.

POAH-Chicago acquired two buildings totaling 94 apartments for seniors and people with disabilities at 325 and 345 North Austin Boulevard. In Elgin, POAH-Chicago acquired Burnham Manor, a 100-unit senior apartment building, and the 27-family unit Burnham Wing Schoolhouse Apartments. The seller was the Burnham Companies.

POAH-CHICAGO’s total portfolio now totals over 1,700 affordable apartments.

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