Transactions & Financings: HCP’s $284M Oakmont Acquisition; Thrive Center-Innovators Alliance Partnership

HCP acquires 5 Oakmont properties for $284M

HCP (NYSE: HCP) announced in its second quarter 2019 earnings report on Wednesday it acquired a portfolio of five senior housing properties in California operated by Windsor, California-based Oakmont Senior Living. The purchase price was $284 million and is part of $528 million in total acquisitions the Irvine, California-based health care real estate investment trust announced in July.

Totaling 430 units, the properties are located in Huntington Beach, Los Angeles, San Jose and San Francisco, and average carry an average age of less than two years.

As part of the transaction, HCP assumed $112 million of secured debt and issued down REIT units at $32.05 per share for approximately 11% of the purchase price.

Thrive Center, Innovators Alliance form partnership

Innovators Alliance and the Thrive Center have joined forces to create Thrive Alliance, a partnership to further accomplish goals for stakeholders in the longevity and aging marketplace. Both groups share a common interest in discovery and research and scaling innovative solutions. The center will be located in Louisville, Kentucky.

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Each entity will maintain separate boards of directors, but the partnership will have an overarching board to drive overall strategy and oversight of joint ventures. Thrive will continue to focus on innovation as an educational experience center with programs and research. Innovators Alliance will focus on innovation test tracks and piloting innovative solutions.

Signature Healthcare CEO Joe Steier will serve as board chair.

Pike Properties, Thrive Senior Living awarded $26.5M of development equity

Cushman & Wakefield Senior Housing Capital Markets Vice Chairman Richard Swartz, Executive Managing Director Jay Wagner and Director Jim Dooley, acting as exclusive advisor to a joint venture between Pike Properties, Thrive Senior Living and Gallium Real Estate arranged a $26.5 million financing package from a private equity fund for a 203-unit independent living, assisted living and memory care development in Montvale, Bergen County, New Jersey.

A $54.6 million construction financing package was previously arranged with a notable senior housing lender and is expected to close in late August.

Lancaster Pollard arranges $16M financing for 2 senior living communities

Lancaster Pollard Senior Vice President Brendan Healy, Vice President Brad Competty and Managing Director Doug Harper arranged $16 million in refinancing on behalf of The Brook Retirement Communities for two of its facilities using the Fannie Mae Seniors Housing program.

The properties are The Brook of Big Rapids in Big Rapids, Michigan, and The Brook of Gaylord in Gaylord, Michigan. Both are 62-unit independent living and assisted living communities.

Beechwood Continuing Care, Presbyterian Senior Care of Western New York Merge

Getzwood-based Beechwood Continuing Care assumed ownership and management of Presbyterian Senior Care of Western New York (PSCWNY), under an affiliation between the two nonprofit senior living operators. The affiliation was first announced in May.

PSCWNY operated three companies: Ken-Ton Presbyterian Village in Kenmore; Presbyterian Village at North Church in Williamsville; and Lockport Presbyterian Home in Lockport. The communities house 250 residents.

Beechwood’s portfolio includes Asbury Pointe, an independent living community in Getzville; Blocher Homes, an assisted living community in Williamsville; Wesley Rehabilitation Center in Getzville; Beechwood Homes, a nursing home in Amherst.

An enriched housing program at Ken-Ton Presbyterian Village is also included in the merger.

CBRE secures refinancing for 2 Harrison Street joint ventures

CBRE National Senior Housing Vice Chairman Aron Will, First Vice President Austin Sacco, and Vice Presidents Adam Mincberg and Tim Root arranged a $35.7 million refinancing package on behalf of a joint venture between Harrison Street Real Estate Capital and Brightview Senior Living for two communities, Brightview Baldwin Park in Staunton, Virginia and Brightview Country Club Heights in Woburn, Massachusetts. Harrison Street and Brightview are joint venture partners on nine other successful communities.

CBRE secured two, separate five-year, floating rate loans, each with 36 months of interest only from the same national bank. Both communities have been owned by Harrison Street and Brightview since 2014.

Will, Sacco and Mincberg also arranged a refinancing of Harrison Street and Franklin Development Properties for two 76-unit assisted living and memory care communities in Boerne, Texas and Round Rock, Texas.

Franklin Apartment Management, Franklin Development’s management affiliate, will continue to operate the communities.

Dougherty Mortgage completes 2 financing transactions, totaling $9.1M

Dougherty Mortgage, a Minneapolis-based mortgage broker, completed the following financing packages:

  • A $1.8 million HUD 220/2239f) refinancing package for Lakeland Shores Apartments, a 46-unit independent living community in Duluth, Minnesota owned and operated by Ecumen
  • A $7.3 million Fannie Mae acquisition loan for Glynn Pines Apartments, an 88-unit affordable senior apartment community in Brunswick, Georgia

English Meadows acquires existing, new campuses

English Meadows Senior Living acquired one of its existing operations, English Meadows Blacksburg Campus in Blacksburg, Virginia. The Christianburg, Virginia-based owner-operator partnered with KeyBank on the $20 million acquisition.
English Meadows also completed the acquisition of its affordable assisted living and memory care community in Crozet, Virginia. The company first announced the acquisition in February.

MassHousing awards $10.2M in tax credits to Massachusetts affordable senior community

Peter Sanborn Place, a 74-unit affordable apartment community for seniors and disabled residents in Reading, Massachusetts, received $10.2 million in MassHousing affordable housing financing, through MassHousing’s Multifamily Accelerated Processing (MAP)/Ginnie Mae Joint Venture Initiative with partner lender Rockport Mortgage Corporation.

The proceeds will extend affordability through 2043, and allow for renovations to the property.

TCM Financing arranges $1.5M SBA financing for California assisted living facility

TCM Senior Vice President Jennifer Davis arranged a $1.5 million loan for the acquisition of Butterfly Gardens, a six-unit assisted living and memory care community in La Jolla, California.

The financing was secured through the Small Business Association (SBA) 504 commercial real estate loan program. The buyer was Leo Espinosa, a registered nurse and founder the community.

Heavenrich & Company sells Colorado assisted living community

Heavenrich & Company Senior Director Brian Clark brokered the $7.5 million sale of The Legacy Commons at Pueblo West, a 51-unit assisted living community in Pueblo West, Colorado. Occupancy was 96% at the time of the sale. The buyer was National Health Investors (NYSE: NHI).

Watercrest Senior Living awarded management of Florida memory care community

Watercrest Senior Living was awarded management of the former Inspired Living of Palm Bay, Florida. Rechristened as Palm Bay Memory Care, the community features 72 apartments with gracious accommodations and upscale amenities. Residents enjoy state-of-the-art wellness, enhanced culinary, and exceptional care programs, all tailored to individual resident preferences.

Hunt Real Estate Capital secures $4M refinancing for Utah assisted living property

Hunt Real Estate Capital Director Brady Johnson originated a $3.74 million Fannie Mae loan to refinance Our House of Tremonton, a 28-unit assisted living facility in Tremonton, Utah owned by SAL Management. Johnson worked with Hunt Chief Credit Officer Andy Kitts and Deputy Chief Underwriter Heath Coryell on the deal.

Our House of Tremonton recently opened 12 new units after completing an extensive renovation and expansion. The remodel included a complete update to all areas of the building, including resident suites, bathrooms, and common areas, as well as adding vaulted ceilings and natural light throughout the front entry, dining room, and hallways.


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