Transactions & Financings: ‘Big 3’ REITs in Fed’s Bond Buying Program; Ziegler’s $278M Deal Volume

Federal Reserve’s bond-buying program includes Welltower, Ventas, Healthpeak

Welltower (NYSE: WELL), Ventas (NYSE: VTR) and Healthpeak Properties (NYSE: PEAK) are among the real estate investment trusts receiving funding as part of the Federal Reserve Bank of New York’s Secondary Market Corporate Credit Facility (SMCCF), The Real Deal reported. The program, established as part of the CARES Act, allows the Fed to buy as much as $750 billion in corporate debt issued by highly rated companies including real estate firms.

REITs account for 3.24% of the SMCCF index, weighted by sector. Welltower accounts for 0.15% of the Fed’s total buy, placing the Toledo, Ohio-based health care REIT third among real estate companies on the list. Chicago-based Ventas accounts for 0.12% of the index and Irvine, California-based Healthpeak accounts for 0.1% of the total index.

The facility began purchasing bonds in mid-June.

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Ziegler completes $278M in bond financing

Ziegler completed two bond financing packages totaling $277.25 million — the Chicago investment bank’s first transactions since the coronavirus pandemic swept across the country.

In the first deal, Ziegler placed $77.85 million in Series 2020A&B fixed rate bonds for Rose Villa, a life plan community in Portland, Oregon undergoing a six-year, multi-phase campus reinvestment project. Proceeds will support the third and final phase of the campus redevelopment.

The second deal, $199.4 million in Series 2020A-D fixed-rate bonds for Acts Retirement-Life Communities, will support a number of projects across its 26 life plan communities, including the addition of independent living units, repositioning of healthcare units, common area renovations and general infrastructure improvements.

Blueprint consults on sale of Oregon assisted living facility

Blueprint Healthcare Real Estate Advisors Senior Director Amy Sitzman and Senior Associate Giancarlo Riso consulted in the sale of an 88-unit assisted living and memory care facility in West Linn, Oregon. The buyer is Los Angeles-based boutique real estate firm Dylan Investments and the community is operated by Cadence Living. 

Carnegie Capital arranges $17M refinancing for Oregon community

Carnegie Capital Managing Partner JD Stettin arranged a $16.6 million refinancing package through Truist for a 96 unit senior housing community in Redmond, Oregon offering independent living, assisted living and memory care services. The borrower, a regional developer-operator, used the proceeds to draw cash out, and the facility features a built-in earn out feature to release more funds as the property maintains stabilization.

National Church Residences acquires Florida independent living villas

National Church Residences acquired 92 villas adjacent to the Water’s Edge of Bradenton in Bradenton, Florida, expanding the organization’s ownership and operations at the community. The provider has owned and operated 108 independent living and assisted living senior apartments at this campus since a merger in 2014. An expansion two years later added 60 new assisted living and 20 secure memory care apartments. The villas are 55-plus, independent living, free-standing condos.

K4Connect closes $21M Series B funding round

Senior living tech firm K4Connect closed a Series B funding round with a raise of $21 million, highlighted by a financing raise of $7.7 million led by Forte Ventures. The company’s outside venture funding to date stands at $31 million.

As part of the investment, Forte Ventures’ Partner Louis Rajczi will join the K4Connect board of directors.

In other K4Connect news, the Raleigh, North Carolina-based firm partnered with Pyron, a artificial intelligence company focused on augmented intelligence for enterprise solutions in the senior living industry in order to help improve the lives of older adults by empowering and augmenting caregivers.

K4Connect’s Staff Assistant, powered by Pryon Answers, enables senior living operators to provide each caregiver with an AI assistant that augments their knowledge, helps them make better decisions, and frees up time for them to spend with residents.

The firm also announced a collaboration with Bandwidth, a software company focused on enterprise communications solutions, to deliver a new critical Covid-19 communications tool to senior living communities, called K4Community Hotline. The platform is a recorded phone message feature that keeps residents, their families, and community staff constantly updated with the latest community information.

Integral Senior Living to manage Oklahoma community

Integral Senior Living was chosen to provide management services for Sooner Station, a 188-unit first-class senior living community currently under construction in Norman, Okla. The community, which sits on an eight-acre site purchased from the OU Foundation, will offer 100 independent living residences, 64 assisted living apartments and 24 memory care suites and is scheduled to open in the fall of 2021.

Lancaster Pollard completes 2 transactions

Lancaster Pollard Mortgage Company completed the following transactions:

  • A $20.8 million refinancing package for a skilled nursing and memory care facility in the Lake Highlands neighborhood of Dallas. the existing debt and reimbursed the ownership group in excess of $1 million for recent capital improvements at the community. Kyle Hemminger led the transaction.
  • Brett Murphy advised Gardant Management in a $16.9 million refinancing package using the FHA Sec. 232/223(f) program for Heritage Woods of Batavia, a 148-unit affordable assisted living community located in Batavia, Illinois. Proceeds retired a short-term bridge loan and put in place non-recourse, permanent debt at a low, fixed interest rate.

ZOM Living, Watermark acquire sites for 2 Florida communities

ZOM Living and Watermark Retirement Communities closed on two sites in south Florida that will deliver a combined 350 luxury rental apartments for seniors in Coral Gables and West Palm Beach. Construction of both projects is expected to begin later this summer.

The acquisitions pave the way for ZOM Senior Living’s second and third luxury rental senior living communities in Florida, following a 424-unit development already underway in Wellington. The company has 774 senior housing units under development.

Propel Insurance acquires senior care insurance consulting firm

Insurance agency Propel Insurance the acquisition of HealthCare Services (HCS), a boutique risk management and insurance consulting firm based in Knoxville, Tennessee specializing in serving senior care organizations. The combined agency will generate in excess of $120 million of annual revenue in 2020 and will have seven offices across the U.S.

The acquisition expands Propel’s existing senior living practice, and the two firms will consolidate their expertise as they help clients manage risk across the country.

SLIB completes sale of Oregon memory care facility

Senior Living Investment Brokerage’s Jason Punzel, Brad Goodsell and Vince Viverito were the sole brokers in the sale of a 59-unit/95-bed memory care facility in Springfield, Oregon. The seller is a local owner-operator that will stay on as a consultant post-closing. This is the seller’s only senior living community. The buyer is a regional operator with multiple communities along the West Coast.

Fitch rates McLean’s 2020 revenue bonds stable

Fitch Ratings assigned a ‘BB+’ rating to the $65 million series 2020A, series 2020B-1, and series 2020B-2 revenue bonds issued by State of Connecticut Health and Educational Facilities Authority on behalf of McLean Affiliates, Inc.

Proceeds are earmarked to fund most of the costs related to McLean’s upcoming independent living unit expansion project, to pay certain capitalized interest costs, to fund a debt service reserve fund, and to pay costs of issuance. The bonds are scheduled to sell via negotiated sale the week of July 20. Ratings outlook is stable.

Rockport Mortgage closes $36M financing for Massachusetts senior apartments

Rockport Mortgage Corporation completed a $36.4 million FHA Section 223(f) refinancing loan for Borden Place Apartments, 261 units of age-restricted housing, located in downtown Fall River, Massachusetts. The development consists of two buildings, Borden Place East (145 units) and Borden Place West (116 units), situated within a two-minute walk of one another.

Proceeds will be used to refinance existing debt, fund replacement reserves and continue ongoing maintenance and minor improvements to keep the properties well maintained. Additionally owner Peabody Properties and HUD agreed to terminate an existing Section 8 contract covering all 261 of the units and enter into a new agreement, keeping Borden Place units affordable through 2055.

SilverPoint Senior Living awarded management of Texas community

SilverPoint Senior Living was awarded management of Heritage Lakes of Pflugerville, a senior living community under construction in Pflugerville, Texas, in partnership with Heritage Lakes Development, a multi-discipline real estate development company.

The new community will feature 28 assisted living and 20 memory care residences adjacent to an existing complement of 38 independent living villas, and is scheduled for a fall 2020 opening.

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