Transactions & Financings: Midwest Health’s $84M Refinancing; MBK Acquires California Community

KeyBank secures $84M financing for 11-property Midwest Health portfolio.

A KeyBank Real Estate Capital team led by Vice President Lee Delaveris secured an $84 financing package through Fannie Mae for an 11-property portfolio consisting of independent living and assisted living facilities owned and operated by Midwest Health. The portfolio comprises 584 units with properties located in multiple locations in Kansas and Iowa. This transaction represented the first advance under a new Fannie Mae credit facility established by KBREC for Midwest Health.

MBK Senior Living acquires southern California community

MBK Senior Living acquired Kirkwood Orange, a 48-unit (59 bed) assisted living and memory care community in Orange, California. This acquisition expands the company’s portfolio to 33 owned and managed communities located throughout the Western United States. The purchase price was not disclosed.

Cushman & Wakefield Senior Housing Capital Markets Vice Chairman Richard Swartz, Executive Managing Director Jay Wagner, Managing Director Aaron Rosenzweig, Director Dan Baker, and Associate Bailey Nygard facilitated the transaction.

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PointClickCare, Family CareSpace announce partnership

Family CareSpace announced a partnership with PointClickCare. As a result of the partnership, Family CareSpace’s location engagement solution has been Integrated with PointClickCare’s electronic health record (EHR) platform, and will be listed on the PointClickCare Marketplace, an online platform that enables customers to easily evaluate authorized third-party technology partners.

The integration enables data-exchange between the platforms and seamlessly combines the clinical data and analytics captured in PointClickCare’s EHR with the real-time location data of Family CareSpace. As a result, senior care providers using the integrated solution set will be able to provide a resident’s family a more robust account of their condition and experience.

Walker & Dunlop provides $10M financing for Washington, D.C. affordable senior housing redevelopment

Walker & Dunlop structured a $10.1 million construction and permanent financing package for Spring Flats, a landmark redevelopment of a historic property known as The Hebrew Home in the Petworth neighborhood of northwest Washington, D.C. The mixed-income development caters primarily to seniors and low-income residents. The project totals 185 units, 88 of which will benefit from the adaptive reuse rehabilitation loan.

Originally constructed in 1925, The Hebrew Home served as a nursing home until 1968, when it was purchased by the District of Columbia and converted into a community health center. Vacant since 2009, the restoration will convert the building into new affordable apartment units and include energy-efficient upgrades designed to achieve a LEED certification upon completion, which is scheduled for the summer of 2020.

A team led by Senior Director Rob Rotach structured the financing with a combination of funding sources: 9% and 4% Low Income Housing Tax Credit (LIHTC) equity; loan proceeds from HUD’s 231 loan program; as well as cash-collateralized tax-exempt bond proceeds and subordinate debt from the D.C. Department of Housing and Community Development. The financing terms included a 40-year, fully amortizing, fixed rate loan for the property co-developers, Victory Housing, Brinshore Development, and Bank of America Community Development Banking.

CBRE completes 2 transactions

CBRE National Senior Housing completed the following transactions:

  • Vice Chairman Aron Will, First Vice President Austin Sacco and Vice President Tim Root arranged supplemental financing on behalf of Green Courte Partners for Arbor Square of Harleyville, a 276-unit independent living community in Harleysville, Pennsylvania. True Connection Communities, Green Courte’s wholly-owned management company, will continue to operate the property. CBRE arranged the financing through its Freddie Mac Optigo Lender program.
  • Will, Sacco and Vice President Adam Mincberg arranged acquisition financing on behalf of a joint venture of HJ Sims and Voralto Living for a 60-unit assisted living and memory care community in north Texas. CBRE secured a four-year, floating rate loan with 24 months of interest only from a national bank.

HJ Sims completes 2 financing packages

HJ Sims completed the following financing packages:

  • Lenbrook, a life plan community in Atlanta, retained Sims to manage the financing process for a $107 million expansion. Sims was able to secure entrance fee debt, which was maximized and the long-term debt amortized while permitting early repayment from turnover entrance fees. Fitch assigned a BBB- rating with a stable outlook
  • Sims arranged $14.3 million in taxable senior debt financing on behalf of a joint venture of MRC Manalapan, LV Development and Springpoint Senior Living for the development of Springpoint at Manalapan, an assisted living and memory care community in Monmouth County New Jersey. Peoples United Bank was selected to provide the financing, incorporating a construction/mini-permanent structure with a five-year balloon maturity. The loan includes tiered-interest rate pricing with reductions in loan credit spread following progression from construction, opening and stabilization. Primary security includes a revenue pledge and property mortgage.

Love Funding secures $13M loan for Missouri assisted living facility

Love Funding Senior Director Eric Forguson closed a $12.9 million FHA loan to take out bridge financing used in the refinancing of the Woodlands of Arnold, an assisted living, memory care and skilled nursing facility in Arnold, Missouri. Forguson secured the bridge loan from Love Funding’s parent company, Midland States Bank, in April and then converted to the permanent HUD loan structure. The new loan, secured through HUD’s Section 232/223(f) program, refinanced the bridge loan and provided low-rate, non-recourse financing for a 35-year term.

Grandbridge closes $11M loan for Arizona assisted living facility

Grandbridge’s Seniors Housing and Healthcare Finance Group Senior Vice President Richard Thomas and Vice Presidents Meredith Davis and Kim Huffstutler closed an $11.3 million loan on behalf of Avista Senior Living. The funds were used to provide financing for Avista North Mountain, a 132-unit assisted living and memory care community located in Phoenix, Arizona. The transaction was originated by Richard Thomas, Meredith Davis and Kim Huffstutler. Funding for the refinance was arranged through HUD’s FHA 232/223(f) program.

Cushman & Wakefield sells Hawaii lot to affordable senior housing developer

A joint venture of Cushman & Wakefield (NYSE: CWK) and Sofos Realty Corporation represented Next Realty in the sale of a 0.3 acre lot in downtown Honolulu to Coastal Rim Properties, which intends to develop a brand new 20-story affordable senior housing tower.

Sofos Realty CEO Steven Sofos handled the transaction on behalf of the seller, with Matt Davis and Terry Jackson of Cushman & Wakefield’s Land Advisory Group in San Diego providing advisory services.

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