Transactions & Financings: Welltower, Healthpeak Reportedly Sell South Florida Communities at Steep Discounts

Welltower sells Florida assisted living facility for $56M

Welltower (NYSE: WELL) sold Aston Gardens Assisted Living in Parkland, Florida for $55.7 million, The Real Deal Miami reports. The buyer was Kayne Anderson Capital Advisors. the property is operated by Discovery Senior Living.

The property sold for $78 million in 2015. The latest sale marks a 28.6% price drop.

Healthpeak affiliate sells Florida community at steep discount

An affiliate of Healthpeak Properties (NYSE: PEAK) sold the Meridian at Lantana, a 172-unit community in Lantana, Florida featuring independent living and assisted living apartments, for $12.35 million, South Florida Business Journal reports. The community is operated by Pacifica Senior Living.

The buyer secured a $10.4 million mortgage from Bank of the West to facilitate the transaction. The community, formerly known as Atria Meridian, last traded for $31.5 million in 2006.

CBRE arranges $58M refinancing for 3-property California assisted living portfolio

CBRE National Senior Housing Vice Chairman Aron Will, First Vice President Austin Sacco and Vice President Adam Mincberg, along with CBRE Multifamily Institutional Group Vice Chairman Andrew Behrens, arranged three refinancing packages totaling $58 million for three assisted living communities owned and operated by Carlton Senior Living: Carlton Senior Living Poet’s Corner Carlton Senior Living Pleasant Hill – Martinez, both in Pleasant Hill, California; and Carlton Senior Living Davis in Davis, California. The portfolio totals 251 Assisted Living units and 64 Memory Care units.

CBRE secured the 10-year, fixed rate loans through its Freddie Mac Seller Servicer direct lending program. Two of the loans feature full-term interest only, the other features half-term interest only.

Dougherty Mortgage closes $6.7M loan for senior housing property in Minnesota

Dougherty Mortgage closed a $6.7 million HUD 223(a)(7) loan for the refinancing of Roseville Seniors, a 127-unit affordable senior apartment building in Roseville, Minnesota. All 127 units are covered by a Section 8 Housing Assistance Payments contract and are restricted to elderly and disabled residents.

Proceeds will be used to reduce the interest rate and mortgage insurance premium, generating substantial annual savings.

Senior Housing Management adds 2 properties to portfolio

Senior Housing Management assumed management for the following properties in Iowa: Prairie Hills, a 45-unit assisted living facility in Cedar Rapids; and Prairie Hills, a community in Des Moines with 47 assisted living units and 27 memory care apartments.

The properties are owned by Healthcare Trust (HTI), a non-traded health care real estate investment trust based in Carlsbad, California, and brings the total number of assets owned by HTI under Senior Housing Management’s control to 12.

Berkadia completes $50M in transactions

Berkadia Seniors Housing & Healthcare Group completed the following transactions, totaling $50.33 million:

• Senior Director Ed Williams secured a $5.5 million refinance of a 51-unit assisted living and memory care community in Georgia for a repeat Southeast-based client. The community’s historical occupancy has average of above 90 percent. The Fannie Mae loan has a 10-year term and two years of interest-only. Proceeds were used to refinance the existing HUD debt, allowing the borrower to redeploy the captured equity across its construction and acquisition pipeline.
• Williams also secured a $11.8 million refinance of a 71-unit assisted living and memory care community in Tennessee. The Fannie Mae loan has a 10-year term and two years of interest-only. Proceeds were used to retire the existing bank debt and return equity to the sponsor to fund their construction and acquisition pipeline.
• Senior Directors Chris Cain and Rafael Nobo secured $29.2 million in financing for a seven-property portfolio with 307 units across Tennessee, Arizona, Delaware and South Carolina. The communities were financed on behalf of a repeat client through a Fannie Mae variable rate loan with a 10-year term and five years of interest only. Proceeds were used to refinance one community and fund the acquisition of six other communities.
• Managing Director Jay Healy secured $3.82 million in HUD financing in the form of a 241(a)supplemental loan for a repeat California-based sponsor. Proceeds will cover 90% of project costs associated with the construction of an additional 12-unit memory care cottage in Sumner, Washington. The memory care campus currently consists of two 12-unit cottages collateralized by a HUD 232/223(f) loan that Berkadia closed in 2018. The supplemental loan will run coterminous with the original HUD loan set to mature in 32 years. Deemed essential by the state of Washington, construction will continue despite COVID-19 related restrictions put in place by Governor Jay Inslee.

Cushman & Wakefield advises on two transactions

Cushman & Wakefield (NYSE: CWK) Senior Housing Capital Markets served as advisor for the following transactions:

• Vice Chairman Richard Swartz, Executive Managing Director Jay Wagner, Director Tim Hosmer and Associate Sam Dylag advised Confluent Senior Living on the equity and construction financing for HarborChase of South Portland, a 123-unit assisted living and memory care community planned for South Portland, Maine co-developer Harbor Retirement Associates will manage the community. Confluent placed the construction loan with M&T Bank and joint venture equity with a leading private equity investor.
• Swartz and Wagner, along with Director Tim Hosmer, Associate Chris Remeika and Analyst Jack Griffin, advised an affiliate of Sentio Investments on the $22.2 million sale of The Pointe at Ocean Boulevard, a 150-unit independent living community in Stuart, Florida, to an affiliate of Waypoint Real Estate Investments. The operator, Arrow Senior Living, will continue to manage the community.

ESI arranges $943K sale of Ohio community

Evans Senior Investments represented the $943,000 sale of Eden Springs Garden Homes, a six-unit independent living property that is a part of the Eden Springs Healthcare & Senior Living campus in Columbus, Ohio.

ESI represented Michael Flanagan, a court-appointed receiver, in the transaction. The Eden Springs campus was placed into receivership in January 2019, after the current borrower defaulted on their existing debt obligation.

Twin Light Capital acquires Florida assisted living community

Twin Light Capital completed the acquisition of Hudson Manor Assisted Living, an assisted living facility in Tampa, Florida. The community is housed in the former Palmerin Hotel. Built in 1926, the building is on the National Register of Historic Places.

Based in Red Bank, New Jersey, Twin Light will launch a capital improvement program highlighted by replacing the building’s original tile roof with a reliable, modern tile roofing system in the same Mediterranean Revival style. Resident rooms will be renovated with new windows, flooring, fixtures, and paint. Twin Light Capital is also retaining the facility’s longtime leadership team.

Evergreen Real Estate Group adds 359 senior apartments to portfolio

Chicago-based Evergreen Real Estate Group was retained to manage affordable housing communities comprising a total of 971 units across Illinois, Minnesota, Ohio, Pennsylvania and Wisconsin. Of those, 359 units are senior apartments:

• Independence Apartments – a 44-unit affordable senior community co-located with a Chicago Public Library branch in Chicago
• Northtown Apartments – a 44-unit affordable senior community co-located with a Chicago Public Library branch in Chicago
• Oakridge Village Apartments – a 90-unit affordable senior and family housing community in Antioch, Illinois
• Holmes Greenway Housing – a 54-unit affordable senior and disabled housing community in Minneapolis
• Golda Meir House – a 127-unit affordable senior housing community in Milwaukee

The assignments expand Evergreen’s management portfolio to 8,500 units throughout the U.S.

Carnegie Capital arranges $15M loan for Idaho assisted living facility

Carnegie Capital Managing partner JD Stettin sourced and structured a $15.1 million refinancing package on behalf of the owner of an assisted living, memory care and skilled nursing facility in Meridian, Idaho. Proceeds will pay off maturing construction loan, fund cost overages and fund a new reserve to see the property through stabilization.

The borrower is a regional developer with a portfolio of assisted living, memory care and nursing facilities in Idaho, Utah and Oregon.