Transactions & Financings: Brookdale Closes $250M Credit Facility; Lancaster Pollard’s $58M Deal Volume

Brookdale terminates $250M credit facility; refinances assets

Brookdale Senior Living (NYSE: BKD) secured $267 million of non-recourse mortgage debt and terminated its $250 million revolving credit facility.

The debt was obtained from Capital One, through Freddie Mac’s Capital Markets Execution Program. The financing includes $191 million of 2.89% fixed rate notes and $76 million of adjustable rate notes with an initial rate of 2.64%. The first priority mortgages were secured by 16 senior living communities, most of which had previously secured Brookdale’s revolving credit facility. At the closing, Brookdale repaid the outstanding principal amount and cash collateralized letters of credit on the credit facility without payment of any termination fee or penalty.

Blueprint completes 3 transactions

Blueprint Healthcare Real Estate Advisors completed the following transactions:

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  • Senior Director Amy Sitzman and Senior Associate Giancarlo Riso were the sole brokers in the sale of a continuing care retirement community (CCRC) in Arizona. The Ensign Group (Nasdaq: ENSG) was the buyer, and the community will be managed by Bandera Healthcare.
  • Sitzman and Riso, along with Senior Director Connor Doherty and Associate Ryan Kelly, facilitated the sale of a 133-unit assisted living and memory care facility in northeast Ohio. The buyer plans to reposition the property as an affordable facility by utilizing the Ohio Assisted Living Waiver program.
  • Executive Managing Director and Co-Founder Ben Firestone and Managing Director Michael Segal represented a state-sponsored pension fund in the sale of two assisted living and memory care campuses in the Denver market, totaling 188 units. The buyer is an Arizona-based owner-operator.

Pegasus Senior Living to manage New York assisted living facility

Pegasus Senior Living assumed management of Evergreen Place, an assisted living facility in Brockport, New York. The Dallas-based operator will implement its Connections program, which caters to seniors experiencing Alzheimer’s and other forms of dementia, using data-driven life-enrichment solutions through music therapy, boxing, brain-healthy diets, and more.

AccentCare, Fairview announce partnership

Post-Acute care provider AccentCare and Fairview Health Services announced the launch of AccentCare Fairview, a new post-acute business in which AccentCare will be the majority owner, and will be the preferred post-acute provider for home health and hospice services for Fairview, which is the parent company of senior living operator Ebenezer.

The deal will enhance home health and hospice services for Minnesotans by tapping into AccentCare’s vast network of specialized resources, technology and care professionals.

Lancaster Pollard completes 2 deals totaling $58M

Lancaster Pollard completed the following transactions, totaling $58 million:

  • A team led by Managing Director Quintin Harris closed a $25 million refinance for Chaska Heights Senior Living, a 138-unit assisted living and memory care community in Chaska, Minnesota. Chaska Heights is managed by Tealwood Senior Living, which manages over 38 skilled nursing and assisted living communities in Minnesota and Wisconsin.
  • A team led by managing director Doug Harper closed on a $33 million refinance for The Plaza at Punchbowl, a senior housing community in Honolulu, Hawaii, and owned by MW Group.

Senior Capital Advisors closes on $22M construction loan

Senior Capital Advisors closed on a $22 million construction loan for The Contemporary, a two-story, 85-unit independent living community in the Westchester submarket of Miami, along with MedSquare Place, a medical office component on the first floor.

Senior Capital Advisors sourced the loan with LiveOak Bank on behalf of MAS*AJP, a Miami-based developer. The Contemporary will be operated by Charter Senior Living.

Presbyterian Manors of Mid-America sells Missouri community

Presbyterian Manors of Mid-America completed the sale of Fulton Presbyterian Manor, a CCRC in Fulton, Missouri, the Fulton Sun reported. The buyer, Legendary Land Holdings, will rebrand the community as Kingdom Care Senior Living.

Grandbridge closes $6.5M loan for Georgia assisted living, skilled nursing facility

Grandbridge Seniors Housing and Healthcare Finance Group completed a $6.45 million loan secured by Presbyterian Home & Retirement Community, a 204-bed skilled nursing and assisted living facility in Quitman, Georgia. The transaction was financed through FHA’s 232/223(f) Interest Rate Reduction loan product.

Fitch downgrades outlook on Tennessee CCRC

Fitch Ratings downgraded the rating for the revenue refunding and improvement bonds series 2013 that were issued by the Health and Educational Facilities Board of the City of Johnson City, Tennessee on behalf of Appalachian Christian Village (ACV), doing business as Cornerstone Village to ‘D’ from ‘CC.’

The downgrade reflects ACV’s failure to pay its semi-annual interest payment on the bonds due on Aug. 15. Due to ongoing financial difficulties, ACV failed to make its payments toward debt service to the trustee, which resulted in the trustee drawing on its debt service reserve funds to make the semi-annual bond payment that was due on Feb. 15. While the remaining reserve has enough funds to cover the Aug. 15 payment, the trustee chose not to draw on the remaining trustee-held funds to make consecutive semi-annual bond payments.

In other ratings news, Fitch assigned a ‘BBB’ rating and stable outlook to Lifespire of Virginia — the first time the ratings agency conducted a financial assessment on the provider. Fitch cited LifeSpire’s strong operating profile with occupancy in each of the communities minimally affected by the coronavirus pandemic. Each community maintains a waitlist for independent living residences. Additionally, the report credited a solid financial profile and low long-term liability as key drivers for the rating.

Columbia Pacific forms JV, expands to India

Columbia Pacific Group formed a joint venture with Indian real estate developer, Nyati Group, to build senior housing in India. The JV’s first project will be a 200-unit building in Pune, Times Now News reported.

Kisco Senior Living announces partnership with Eversound

Kisco Senior Living and senior living tech company Eversound announced a partnership, where Eversound will bring the latest technology and interactive content to older adults in ways that create engagement, purpose and self-fulfillment. Eversound launched in 12 of Kisco’s 20 communities, with plans to expand in the near future.

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