Transactions & Financings: Five Star Restructuring Complete; HJ Sims Arranges $219M Construction Financing

Cindat, Omega partner on $232M UK portfolio deal

Chinese investment firm Cindat Capital Management entered into a joint venture with health care real estate investment trust, Omega Healthcare Investors (NYSE: OHI), on a 49% stake in a 67-property senior housing portfolio in the United Kingdom from Irvine, California-based health care REIT, Healthpeak Properties (NYSE: PEAK). The value of the Cindat-Omega share is $232 million and includes the assumption of a development loan on a new property in the portfolio. Cindat already owned a 51% stake in the portfolio.

HJ Sims, Duncan-Williams complete $219M construction financing package

HJ Sims completed a $219.3 million financing package for the construction of The Farms at Bailey Station, a continuing care retirement community in Collierville, Tennessee. The Farms is a sister community of Kirby Pines Estates, located in Memphis. Both communities are operated by Retirement Companies of America (RCA).

Duncan-Williams served as co-manager on the financing. The Farms is 70% pre-sold.

Five Star, Diversified complete business restructuring

Five Star Senior Living (Nasdaq: FVE) and Diversified Healthcare Trust (Nasdaq: DHC) completed the previously announced restructuring of the business arrangements between the two companies, effective January 1.

In accordance with the agreement, the five existing master leases for 166 of DHC’s senior living communities — totaling 18,676 living units — that were leased to Five Star, along with existing management and pooling agreements between the two companies for an additional 77 of DHC’s senior living communities — 10,168 living units — have been terminated and replaced with new management agreements for all 243 DHC senior living communities that are operated by Five Star.

CBRE completes $18M refinancing

CBRE National Senior Housing Vice Chairman Aron Will, First Vice President Austin Sacco and Vice President Tim Root arranged an $18 million refinancing package on behalf of Focus Healthcare Partners for Bartlett Reserve, a 100-unit independent living community in Durham, North Carolina.

CBRE Multifamily Capital originated the loan through its Fannie Mae DUS Multifamily loan origination program. The real estate services company originally financed its acquisition in 2017.

KeyBank provides $18M bridge loan for Florida community

KeyBank Real Estate Capital provided an $18.1 million bridge loan to CPF Living Communities, a subsidiary of Chicago Pacific Founders, to acquire a seniors housing community in Florida. The property, Beach House Naples, includes 113 assisted living and memory care units in studio, one-bedroom and two-bedroom configurations. The property is operated by CPF Living Communities’ wholly-owned management company Grace Management Inc.

KeyBank Real Estate Capital’s Institutional Healthcare Group Vice President Peter Trazzera and Associate Patrick Gilbreath of structured the financing.

Blueprint completes 6 transactions

Blueprint Healthcare Real Estate Advisors completed the following transactions:

• Executive Managing Director Jacob Gehl, Managing Director Humair Sabir and Senior Associate Scott Frazier represented the seller in the $7.25 million sale of Cloisters of the Valley, a 70-bed assisted living facility in Mission Hills, California. The buyer is Bayside Senior Living, a growing owner-operator with three other communities in the greater San Diego metropolitan area.
• Executive Managing Director Ben Firestone, Managing Director Michael Segal, Senior Director Alex Florea and Director Amy Sitzman were the sole brokers in the sale of The Woodmark at Sun City, a 132-unit assisted living and memory care community in Sun City, Arizona. The buyer is a privately-owned, California-based owner-operator with an expanding presence in the Phoenix area.
• Firestone, Segal and Florea facilitated the sale of two private-pay assisted living communities in Oklahoma City, Oklahoma and Wichita, Kansas, on behalf of a publicly traded REIT and a national operator. The communities total 52 units. The buyer was a Kansas-based, family-owned senior living provider.
• Firestone and Segal represented Ventas (NYSE: VTR) in the sale of Las Villas Del Norte, a 185-unit assisted living and memory care community in Escondido, California. The buyer is a locally based and privately held real estate investment firm with experience repurposing senior care properties.
• Firestone, Segal, Florea and Senior Managing Director Steve Thomes represented Ventas in the sale of Atria Stratford, a 100-unit assisted living and memory care community in Stratford, Connecticut. The buyer was Woodbine Senior Living, which secured a $13.1 million acquisition loan from Coastal States Bank. Woodbine partnered with Locust Point Capital, which provided a $5 million preferred equity investment, on the acquisition.
• Sitzman, along with Senior Associates Blake Bozell and Giancarlo Riso, represented the seller in the disposition of Alexander Place, a vacant 35-unit senior housing community in Caldwell, Idaho. The buyer will renovate the property and add it to its growing Idaho footprint.

Confluent Senior Living completes sale of 3 MorningStar Senior Living communities

Confluent Senior Living completed the sale of three communities it co-developed with MorningStar Senior Living: MorningStar at Jordan Creek, a 85-unit assisted living and memory care community in West Des Moines, Iowa; MorningStar of Beaverton, a 104-unit assisted living and memory care community in Beaverton, Oregon; and MorningStar of Santa Fe, an 85-unit assisted living and memory care community in Santa Fe, New Mexico.

MorningStar will maintain its role as operator for the communities. CBRE brokered the deal on behalf of Confluent Senior Living.

ESI completes $9.2M sale of Minnesota assisted living facility

Evans Senior Investments (ESI) completed the $9.2 million sale of Coventry of Mahtomedi, a 48-unit assisted living and memory care community in St. Paul, Minnesota. The buyer, a publicly-traded REIT, will bring in a local operator to manage the community.

NorthMarq completes $800K refinancing for New York community

NorthMarq Senior Vice President/Managing Director Robert Ranieri arranged an $800,000 refinancing package for Canterbury Commons, a 20-unit senior housing property in Mount Vernon, New York.

NorthMarq arranged financing for the borrower through its relationship with The Westchester Bank.

NKF sells, finances Philadelphia senior housing community

Newmark Knight Frank (Nasdaq: NMRK) Vice Chairmen Chad Lavender and Ryan Maconachy represented Formation Development Group in the sale and financing of Solana at Doylestown, a 98-unit senior housing community in Doylestown, Pennsylvania. Originally opened in 2014, the property was 96% occupied at the time of sale. The buyer was a joint venture of LCS Senior Living and Nuveen and the price was undisclosed.

NKF Managing Director Sarah Anderson and Director Brittany Robinson secured financing on behalf of the buyer.

Helios Healthcare Advisors sells Ohio senior living community

Helios Healthcare Advisors was the sole broker in the sale of a 117-unit independent and assisted living community in Summit, Ohio. The buyer is a California-based private commercial real estate investor with a growing senior housing portfolio. The transaction allows the seller to exit the senior housing space.

LCS awarded management of Virginia community

Life Care Services assumed management of Atlantic Shores Retirement Community — a 667-unit, cooperatively-owned continuing care retirement community in Virginia Beach, Virginia — effective January 1.

Minnesota community under new ownership, name

Traditions of Harmony, a retirement community in Harmony, Minnesota, will soon be under new ownership and known by a new name – Harmony Place. Senior Housing Management, located in Cedar Rapids, Iowa, will continue operational responsibilities for this community.