Transactions & Financings: Welltower’s $300M Cash Tender Offer; Ziegler’s $45M Financing Package

Welltower announces $300M cash tender offer

Welltower (NYSE: WELL) announced a cash tender offer for up to $300 million in 3.95% and 3.75% notes, both due in 2023.

The offer will expire on July 14, 2020 at midnight Eastern. Welltower has retained BofA Securities, J.P. Morgan Securities and Wells Fargo Securities to serve as dealer managers and D.F. King & Co. to serve as tender and information agent for the offer.

Ziegler closes $156M in total financing

Ziegler closed on the following transactions, totaling $156.1 million:

• A $110.9 million financing package for Westminster, a continuing care retirement community in Austin, Texas managed by Life Care Services (LCS). The package includes $63.9 million in Series 2020 Bank Bonds with a 30-year amortization and a $47 million Series 2020B short-term loan that will be retired with initial entrance fees from the project. Additionally, LCS is providing development services for an expansion that includes a new five-story building containing 43 independent living apartments, 38 memory care units, 36 assisted living units, and additional dining, parking and amenity areas, a new five-story tower containing a wellness node with a fitness center, physical and occupational therapy space, a salon, a clinic, 15 spaces of underground parking and 18 independent living apartments; and renovation of the Windsor Building dining room, lobby, second floor therapy space, third floor assisted living units, memory care units, and conversion of an existing fitness and craft room to pool locker rooms.
• A $45.2 million financing package for The Village at Germantown, a nonprofit that is developing and will operate a continuing care retirement community in Germantown, Tennessee. Ziegler used Series 2020 bank bonds to refinance the Series 2012 Bonds using a Cinderella Refunding structure to achieve significant savings.

Keybank secures $27.5M
for Utah affordable senior community

KeyBank Community Development Lending and Investment (CDLI) Vice President Hector Zuniga and Senior Vice President Jennifer Seamons secured $17.6 million of construction and permanent financing and $9.9 million of tax credit equity on behalf of Hampstead Development Partners, a real estate company based in San Diego that specializes in creating and preserving affordable housing throughout the country, to acquire and renovate Jackson Apartments, a historic affordable housing property in Salt Lake City.

Built in 1916, the four-story, 80-unit Jackson Apartments was financed through tax-exempt bonds issued by the Utah Housing Corporation 4% low-income housing tax credit (LIHTC) equity, state historic tax credit equity, an Opportunity Zone equity investment and a loan from the Redevelopment Agency of Salt Lake City.

As part of the LIHTC, 80% of the units will be restricted to residents age 55 and older, with 20% of the units available to non-seniors. All units are restricted to 60% area median income and will benefit from a new 20-year, Section 8 project-based Housing Assistance Payment contract.

National Church Residences acquires Ohio affordable senior community for $1M

National Church Residences acquired The Woodlands on Lafayette, a 50-unit affordable senior apartment building in Middletown, Ohio, from strategic partner Volunteers for America. The purchase price was $1 million, Dayton BizJournal reports.

The acquisition expands National Church Residences’ footprint in Middletown to four rental communities.

Blueprint completes sale of Tennessee senior housing community

Blueprint Healthcare Real Estate Advisors completed the sale of a 155-unit independent living and assisted living community in Memphis, Tennessee. The transaction was placed under contract after the Covid-19 pandemic started.

Executive Managing Director and co-founder Ben Firestone and Director Brooks Blackmon facilitated the transaction.

Lenbrook closes on expansion pre-sale goal

Lenbrook, a life plan community in Atlanta, recently completed 60% of its presale goal for a $116 million expansion announced in October 2019.

The success of the pre-sale campaign helped Lenbrook acquire the necessary final financing of $106.7 million for the expansion.