Transactions & Financings: Healthpeak’s $600M Senior Note Offering; Resort Lifestyle Communities $36M Construction Loan

Healthpeak Prices $600M in Unsecured Senior Notes

Healthpeak Properties (NYSE: PEAK) announced a public offering of $600 million aggregate principal amount of 2.875% senior unsecured notes due 2031. The price to investors was 99.125% of the principal amount of the notes.

Healthpeak plans to use the net proceeds from the offering to fund the redemption of $300 million in outstanding 3.15% senior notes due in August 2022, as well as fund the purchase price for a previously announced cash tender offer for a portion of its 4.25% senior notes due in November 2023. Any remaining net proceeds will be earmarked for general corporate purposes, including repayment of any outstanding borrowings under its revolving credit facility.

The offering is expected to close on June 23, subject to the satisfaction of customary closing conditions. Wells Fargo Securities, Barclays, BofA Securities and Morgan Stanley are acting as joint book-running managers for the offering.

Resort Lifestyle Communities secures $36M for Lake Worth project

A Resort Lifestyle Communities affiliate secured a construction loan totaling $35.7 million for Palomino Gardens Retirement Community, a 128-unit rental senior housing property currently under construction in Lake Worth, Florida, The Real Deal South Florida reports.

The loan was secured through Truist Bank, headquartered in Charlotte, North Carolina.

Fairstead acquires Florida affordable senior housing for $30M

Fairstead, a real estate developer, owner and operator based in New York City, completed a $29.5 million acquisition of Federation Sunrise Apartments, a 123-unit Section 8 housing building for seniors in Sunrise, Florida.

The acquisition was financed through the issuance of federal low-income housing tax credits and tax-exempt bonds from the Housing Finance Authority of Broward County. Fairstead will embark on a multimillion dollar capital improvement program including a full renovation of the apartments, as well as substantial site work focusing on improving landscaping and amenities.

Fitch updates ratings on 3 CCRCs

Fitch ratings announced updates to the credit ratings of the following continuing care retirement communities:

• Fitch downgraded the ratings on the bonds issued by the Mayor and Council of Rockville, Maryland on behalf of Ingleside at King Farm (IKF), to ‘B-‘ from ‘BB-‘. Fitch also affirmed Ingleside at King Farm’s rating outlook as negative.
• Fitch affirmed the ‘A’ rating on the following bonds issued on behalf of Willow Valley Communities in Willow Street, Pennsylvania. The firm also reaffirmed Willow Valley’s ratings outlook as stable.
• Fitch affirmed the ‘BBB-‘ ratings on New Jersey Economic Development Authority (NJEDA) revenue bonds issued on behalf of United Methodist Communities (UMC). The ratings outlook is stable.

Invesque exits Royal Senior Care portfolio

Invesque exited its Royal Senior Care joint venture portfolio, consisting of six assets in Florida, Georgia and South Carolina. The Florida community was sold to a third-party buyer. Royal Senior Care bought out Invesque’s share of the Georgia community, and the South Carolina assets were transitioned to an existing portfolio partner with a footprint in the state.

Blueprint Healthcare Real Estate Advisors’ Senior Director Alex Florea and Directors Brooks Blackmon and Trent Gherardini facilitated the transaction.

ESI arranges $39M sale of 3 Michigan senior living/skilled nursing facilities

Evans Senior Investments facilitated the sale of two senior living/skilled nursing facilities and one stand-alone skilled nursing home in Michigan for $38.5 million. The portfolio consisted of 88 assisted living units, 36 memory care units, and 270 skilled nursing beds. The senior housing portion of the portfolio is 100% private pay.

Cushman & Wakefield completes 2 transactions

Cushman & Wakefield Senior Housing Capital Markets (NYSE: CWK) completed the following transactions:

• A team led by Executive Managing Director Allen McMurtry and Senior Director David Kliewer facilitated the sale of The Watermark at Trinity Independent Living, a 117-unit independent living community located within The Watermark at Trinity campus in Trinity, Florida, to Kayne Anderson Real Estate. Cushman & Wakefield represented the development group comprised of Walt Chancey of Gulf Coastal Development, Ricky Rookis of Rookis Development and Watermark Retirement Communities, in the sale.
• A team led by Vice Chairman Richard Swartz, Executive Managing Director Jay Wagner and Senior Director Tim Hosmer represented an affiliate of BridgeForth Capital on the $19.8M financing of HarborChase of Riverwalk, a recently opened assisted living and memory care community. The property is located in Rock Hill, South Carolina and is operated by Harbor Retirement Associates.

Carnegie Capital facilitates sale of 4 Oregon assisted living facilities

Carnegie Capital Managing Partner JD Stettin completed the disposition of four assisted living and memory care communities in tertiary markets across Oregon. The communities, which were underperforming, were acquired by a private investor with a multi-state portfolio that plans to use capital expenditures to upgrade the properties, and transition operations.

Symphony Care Network acquires 2 Michigan assisted living facilities

Symphony Care Network completed the transition of two assisted living facilities in Michigan: Caretel Inns of Tri-Cities in Bay City and Caretel Inns of Linden, in Linden. The communities, along with a skilled nursing facility, will be renamed Symphony Tri-Cities ans Symphony Linden.

Charter Senior Living adds Illinois assisted living facility to portfolio

Charter Senior Living acquired Citadel Estates, a boutique assisted living and memory care community in Hazel Crest, Illinois. The community, now known as Charter Senior Living of Hazel Crest, was acquired just as the coronavirus pandemic spread across the U.S. Charter executed extensive risk-mitigation actions to keep the community free of Covid-19.