Transactions & Financings: Ziegler’s $184M Financing Deal Volume, Commonwealth Senior Living Acquires Virginia Community

Sales and operator transitions

Commonwealth Senior Living acquires Virginia assisted living facility

Commonwealth Senior Living acquired Cedar Manor Assisted Living, an assisted living facility in Chesapeake, Virginia including 60 assisted living beds and 12 memory care beds. The community will be rebranded as Commonwealth Senior Living at Cedar Manor. Immediately after the holiday season, the operator will begin a renovation and capital expenditure program which will expand its capacity to 68 assisted living and 32 memory care units.

The W Group assumes management of 6 New York assisted living facilities

The W Group, a Brooklyn, New York-based operator, submitted applications with the New York Department of Health to assume operations of six assisted living facilities in upstate New York, Albany Business Review reports. The previous operator is Adirondack Manor, an owner and operator based in Clifton Park, New York.

Financings

Ziegler closes 2 financing packages totaling $184M

Ziegler closed on the following financing packages:

• A $107.7 million Series 2020 bond offering for Cypress Cove at Healthpark Florida, a CCRC in Fort Myers, Florida. Proceeds will be used to refinance outstanding debt, reimburse and fund certain capital expenditures, fund a debt service reserve fund and pay costs of issuance.
• A $77.1 million Series 2020 bond offering for Presbyterian Village North in Dallas, Texas. The bonds are comprised of $45.1 million Series 2020A bonds sold publicly to institutional investors and $32 million Series 2020B Bonds placed with Frost Bank. Proceeds are earmarked for an expansion project, funding a debt service fund, paying capitalized interest and paying down the cost of issuance of the Series 2020 bonds.

HJ Sims arranges $78M refinancing package for John Knox Village

HJ Sims closed on a $77.6 million refinancing and capital project package on behalf of John Knox Village, a life plan community for age- and income-qualified residents in Pompano Beach, Florida. The financing gives the provider flexibility as it launches its Westlake Tower expansion

PGIM Real Estate arranges $60M for Colorado community

PGIM Real Estate arranged a $60 million Freddie Mac loan to refinance Lincoln Meadows Senior Living, a 208-unit independent living, assisted living and memory care community in Parker, Colorado. The property is owned and operated by Spectrum Retirement Communities.

Grandbridge arranged $19.5M loan

Grandbridge Senior Housing and Healthcare Finance Group closed a $19.5 million loan for Highgate Senior Living. The funds were used to provide financing for Highgate at Temecula, an 84-unit assisted living and memory care community in Temecula, California. The transaction was funded through Freddie Mac.

Ratings Outlooks

Fitch affirms ratings outlooks on 3 CCRCs

Fitch Ratings affirmed the ratings on the following CCRCs:

• Fitch affirmed the “A” issuer default rating for Lasell Village in Auburndale, Massachusetts. Key rating drivers include a strong financial profile supported by robust liquidity, solid operations, and steady occupancy levels. Lasell Village had $48.5 million in unrestricted cash and cash equivalents on hand as of the end of its fiscal year on June 30, translating into 1,020 days cash on hand and 332.4% cash to debt, both of which exceed Fitch’s ‘A’ category medians of 649 DCOH and 129.2%. This provides a financial cushion that enables it to absorb operating pressures associated with the current coronavirus pandemic, as well as mitigates risks given Lasel Village’s position as a relatively small, single-site provider. The rating outlook was upgraded from stable to positive.
• Fitch assigned a ‘BBB-‘ rating on $95.1 million in Series 2020A senior living revenue bonds expected to be issued by The Industrial Development Authority of the City of Glendale, Arizona, on behalf of Royal Oaks Life Care Community in Sun City, Arizona. Additionally, Fitch downgraded the rating assigned to the Series 2016 bonds to “BBB-” from “A.” The series 2016 bonds have been removed from rating watch negative. The rating outlook is stable. Key rating drivers inclure increased long-term permanent debt that Royal Oaks will incur for its large-scale expansion project.
• Fitch affirmed the “BBB+” rating on $88.5 million in Series 2019A, 2019B, 2013A and 2013B revenue bond issued by the Wisconsin Public Finance Authority on behalf of Fellowship Senior Living. The rating outlook is negative, which reflects higher execution risk as the provider continues to rebuild its independent living occupancy after a large construction project in the center of its Basking Ridge, New Jersey campus.

Miscellaneous

Pegasus Senior Living Engages Genesis Rehab Services for Resident Rehab Programming

Pegasus Senior Living began working with Genesis Rehabilitation Services to provide residents with on-site physical, occupational and speech therapy in all of its communities. Previously, Pegasus partnered with various rehabilitation entities across its portfolio.