Transactions & Financings: Sienna’s $175M Debt Offering; KeyBank’s $38M Financing

Greystone provides $13.9M financing for Washington senior housing property

Greystone provided a $13.9 million HUD-insured loan to refinance The Savoy at Lake City Senior Living, an 80-unit seniors housing property in Seattle. The transaction was originated by Managing Director Shana Daby and Relationship Manager Lorie Hanson, on behalf of Lake City Project Associates.

The non-recourse HUD 223 (a)(7) loan refinances the property at a low, fixed rate and 40-year term and amortization, resulting in a significant reduction in annual debt service payments.

KeyBank secures $38M financing package for Ohio affordable senior housing community

KeyBank Community Development Lending and Investment (CDLI) secured a $6 million equity bridge loan and KeyBank Real Estate Capital’s (KBREC) Commercial Mortgage Group secured $16 million of fixed-rate Fannie Mae financing for a partnership between St. Mary Development Corp. and Related Companies to renovate The Biltmore Towers in Dayton, Ohio. Additionally, the Key Community Development Corporation provided $16 million of low-income housing tax credit (LIHTC) and historic tax credit (HTC) equity combined.

Advertisement

Kyle Kolesar and Victoria O’Brien of KeyBank’s CDLI team and Tabare Borbon KBREC’s Commercial Mortgage Group structured the financing.

Built in 1929 as the Dayton Biltmore Hotel, The Biltmore Towers is an affordable 230-unit, 18-story, age-restricted (55+) mixed-use building. In addition to affordable residences for seniors, the historic landmark features more than 23,000 square feet of community space and more than 14,000 square feet of commercial space. The renovation program – which focuses on environmental sustainability, historic preservation and amenity improvements – will include upgrades to the interiors of the apartments as well as the common areas and community spaces. It’s anticipated that no tenants will be permanently displaced during the renovation, which will take about 18 months.

Sienna Senior Living prices $175M debt offering; entering $100M credit facility

Sienna Senior Living is issuing $175 million of series B senior unsecured debentures, bearing a 3.45% annual interest rate and will mature on February 27, 2026.

The offering is backed by a syndicate of agents led by BMO Capital Markets and TD Securities, as joint lead bookrunners, and CIBC Capital Markets as additional joint lead, and is expected to on October 2, subject to satisfaction of customary closing conditions.

The offering coincides with Sienna entering into a $100 million secured term credit facility with an initial term of one year, along with a one-year term option. The line of credit is expected to be secured by three retirement residences.

Sienna intends to use the net proceeds from the Offering and the Credit Facility, together with other sources of liquidity, to repay existing debt, including the redemption of all outstanding 3.474% Series B Senior Secured Debentures due February 3, 2021 of Sienna’s wholly-owned subsidiary, Leisureworld Senior Care, and for general corporate purposes.

Fitch revises one ratings outlook, affirms another

Fitch Ratings affirmed the ‘A-‘ rating on $93.4 million in senior living revenue bonds from the Industrial Development Authority of the City of Glendale, Arizona, as well as $39.8 million in Series 2019B taxable bonds from Sun Health Services, on behalf of Sun Health Services Obligated Group. The ratings outlook is stable. Key rating drivers include strong independent living performance, despite the coronavirus pandemic – occupancy for the segment is currently 92%. Additionally, operating results are adequate despite profitability lagging slightly behind expectations.

Fitch also affirmed the ‘BBB’ rating on $25.4 million in bonds issued by Hospital Facilities Authority of Multnomah County, Oregon on behalf of Terwilliger Plaza, a continuing care retirement community in Portland, Oregon. The ratings outlook was revised from stable to negative. Key rating drivers include deterioration in profitability and liquidity metrics since 2017, notably increased operating expenses, weak portfolio performance, strategic land purchases and other capital projects led to a decrease in unrestricted cash and investments in Fiscal Year 2018.

Blueprint completes 2 transactions

Blueprint Healthcare Real Estate Advisors completed the following transactions:

  • Executive Managing Director and Co-Founder Jacob Gehl, Managing Directors Humair Sabir and Dan Mahoney and Senior Associate Blake Bozett facilitated the sale of an 82-unit assisted living and memory care community in Pasco, Washington.
  • Mahoney and Bozett represented the buyer, a joint venture between a local operator and capital partner, in the acquisition of Baycrest Memory Care, a 55-unit memory care community in Coos Bay, Oregon.

Lancaster Pollard closes $9.5M refinancing for Illinois supportive living facility

A Lancaster Pollard team led by Vice President Brett Murphy closed a $9.5 million refinance for Grand Prairie of Macomb, an 84-unit supportive living facility in Macomb, Illinois. The FHA Sec. 232/223(f) refinance paid off a recent acquisition loan.

SLIB facilitates sale of Kentucky assisted living facility

Senior Living Investment Brokerage Senior Vice President Daniel Geraghty and Managing Director Brad Clousing completed the sale of Sterling Meadows, an assisted living facility in Mt. Sterling, Kentucky. The seller was a Lexington, Kentucky-based developer exiting the sector. The buyer is a regional owner-operator making its first acquisition in the Bluegrass State.

Carely acquires online care review site

Caregiving startup Carely acquired Ro & Steve, an online senior housing and care review site, Dayton Business Journal reports.

As part of the deal, Ro & Steve founder Matt Perrin will become Carely’s head of growth and will oversee the company’s sales and partner-relationship activities.