Transactions & Financings: McFarlin Group Sponsors Global Investor; Greystone’s $24M HUD Loan

McFarlin Group is looking beyond the U.S. for senior housing investors.

The Dallas-based fully integrated senior housing firm became a sponsor of Private Wealth Global, an investment platform focused on core-plus and value-add opportunities in the U.S. and Europe, particularly multifamily and health care.

The move gives McFarlin access to investors in South America and Europe for its latest investment fund. Last April, the firm announced a $100 million target fund to acquire senior housing communities under operational distress from Covid-19.

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Affiliations

Health Dimensions Group to manage Illinois community

Health Dimensions Group was tapped to manage, provide oversight, and reposition the former Brookdale Burr Ridge assisted living facility in Burr Ridge, Illinois. The community was rebranded as Dimensions Living Burr Ridge.

Sales and operator transitions

Taylor Community acquires New Hampshire senior housing community

Taylor Community completed an acquisition of Sugar Hill Retirement Community, a senior housing community in Wolfeboro, New Hampshire with independent living apartments and cottages, and an assisted living wing, the Laconia Daily Sun reports.

Taylor plans to expand the assisted living wing, as well as provide services to those who need nursing or memory care. Bank of New Hampshire provided acquisition financing.

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Brookfield acquires Virginia community for $20M

Brookfield Properties acquired Sunrise Villa Tuckahoe, an assisted living facility in Richmond, Virginia, for $20 million, Richmond BizSense reports.

Sunrise Senior Living will continue to operate the community, which also offers memory care and hospice services.

Fairstead completes $60M Florida affordable senior apartment community acquisition

New York-based affordable housing developer and investor Fairstead recently acquired Goodlette Arms Apartments, an 250-unit affordable community for seniors in Naples, Florida, for $59.5 million. Additionally, the firm will spend an additional $25 million to upgrade all apartments and common areas along with energy, sustainability and property resiliency measures across the property.

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The deal will preserve affordability at Goodlette Arms Apartments for at least the next 40 years. Fairstead secured financing for the project from Berkadia Commercial Mortgage, with Regions Bank acting as the tax credit investor and the Collier County Housing Finance Authority acting as bond issuer.

SLIB completes 2 transactions

Senior Living Investment Brokerage completed the following transactions:

  • Managing Director Jason Punzel and Vice Presidents Vince Viverito and Brad Goodsell were the sole brokers in the $3.5 million sale of an independent living community in Medford, Oregon. The seller is a regional owner and operator specializing in higher acuity care. The buyer is a local owner and operator that will remodel and reposition the building.
  • Managing Directors Matthew Alley and Ryan Saul were the sole brokers in the sale of Sun Ridge of Cielo Vista, Sun Ridge of Cambria and Sun Ridge of Desert Springs, three assisted living and memory care communities in the El Paso, Texas market. The price was not disclosed. The seller is a capital provider looking to divest of non-core assets. The buyer is a local owner and operator familiar with the market. The seller closed one of the facilities while the transaction was being completed, and the buyer will re-open it with a new use.

Christian Care Communities buys Kentucky community exiting bankruptcy

Christian Care Communities is acquiring Village East, an 89-unit senior housing community in Middletown, Kentucky that is working to exit Chapter 11 bankruptcy, Louisville Business Journal reports.

The community includes 39 garden-style independent living homes, 31 independent living apartments and 19 assisted living units. The purchase was financed with two loans totaling $4.24 million from Central Bank & Trust Company.

Heavenrich & Company sells Houston memory care, skilled nursing community

Heavenrich & Company completed the sale of Pathways Memory Care, a 94-bed/60-unit memory care and skilled nursing community in northwest Houston. Heavenrich represented the seller, StoneGate Senior Living, and secured the buyer for the deal.

Financings

Newmark arranges acquisition financing for Massachusetts senior living community

Newmark arranged acquisition financing for The Residences at Watertown Square, a senior living community in Watertown, Massachusetts featuring 19 independent living apartments, 46 assisted living units and 25 memory care units.

Managing Director Sarah Anderson, Vice Chairmen Ryan Maconachy and Chad Lavender, Managing Director Ross Sanders and Senior Managing Director David Fasano represented the buyers, a joint venture partnership between Harrison Street Real Estate Capital and LCB Senior Living in the transaction.

Greystone provides $24M HUD loan for Indiana CCRC

Greystone provided a $23.8 million HUD-insured loan for the refinancing of Hubbard Hill Retirement Community, a newly expanded, 220-unit continuing care retirement community in Elkhart, Indiana. Vice President/Senior Loan originator Lisa Fischman originated the Section 232/223(a)(7) loan on behalf of the provider, which refinances the skilled nursing, assisted living and memory care portion of the campus. The loan carries a 30-year term with a fixed interest rate.

Berkadia arranges $32M financing package for Wisconsin community

Berkadia’s Seniors Housing and Healthcare Group secured $32.3 million in refinancing through Freddie Mac, for a seniors housing facility in Appleton, Wisconsin. Senior Director Chris Cain secured the financing on behalf of the Oregon-based owner and operator, Touchmark. The loan features five-years interest rate only and 70% loan-to-value ratio.

CIBC closes $7M acquisition financing package for 2 New York assisted living facilities

CIBC Bank USA closed a $6.75 million acquisition financing for two assisted living facilities in the greater New York region, which are part of the state’s Medicaid Assisted Living Program. The facilities were run by a private owner for many years, with past occupancy hovering around 80% and margins in the high 30% range.

Oxford Finance provides $23.5M credit facility to Prosper Life Care

Oxford Finance closed a $23.5 million credit facility and revolving line of credit to Prosper Life Care, an assisted living and memory care provider. Proceeds were used for the acquisition of two assisted living/memory care facilities located in Massachusetts totaling 214 units.

Lument provides $28M refinancing for California luxury retirement community

Lument provided a $28 million refinancing via the Fannie Mae Seniors Housing program for La Vida Del Mar, a 105-unit assisted and independent living community in Solana Beach, California operated by Senior Resource Group. Managing Director Doug Harper, co-lead of Lument’s western region seniors housing and healthcare production team, led the transaction.

The loan features a 10-year term, five years of interest only, and 30-year amortization. In addition to refinancing existing debt, the closing provided substantial cash-out proceeds.

HJ Sims provides $2.8M refinancing for StoneCreek Real Estate Partners

HJ Sims completed a $2.8 million PACE financing package on behalf of StoneCreek Real Estate Partners for The StoneCreek of Copperfield, a 108-bed senior housing community that will include 74 assisted living units, 22 memory care units and 12 independent living cottages currently under construction in the Copperfield area of Houston. The community will be operated and managed by Civitas Senior Living.

MassDevelopment arranges $6.4M bond for affordable senior housing conversion

MassDevelopment issued a $6.4 million tax-exempt bond on behalf of 41 N. Margin Senior Apartments, LLC, an affiliate of East Boston Community Development Corporation (EBCDC) and Affirmative Investments.

Proceeds will be used to receive a 99-year lease from Ausonia Home Association for a portion of its property at 41 N. Margin Street in Boston’s North End, to convert the property, which has been vacant for two years and was previously the headquarters for the Ausonia Council 1513, Knights of Columbus, into the Knights of Columbus Apartments that will feature 23 one-bedroom units of affordable senior housing to be rented to households earning no more than 60% of the area median income. The project includes renovating the building, adding two floors where the housing units will be located, and constructing a 1,600-square-foot addition that will serve as the new quarters for Ausonia Council 1513, Knights of Columbus. Eastern Bank purchased the bond.

Ratings Outlooks

Fitch downgrades ratings on 3 CCRCs, assigns 1 more

Fitch Ratings announced ratings on the following CCRCs:

  • Fitch downgraded the credit rating on $5.9 million in revenue refunding bonds issued by the California Statewide Communities Development Authority to Aldersly, a CCRC in San Rafael, California, to “BBB-” from “BBB.” The rating outlook is negative. Key drivers include continued deterioration of census and soft operational performance.
  • Approximately $110 million in Series 2016 and 2017A revenue improvement bonds issued by Sarasota County Health Facilities Authority, as well as 2019 revenue improvement bonds issued by the City of Venice, Florida on behalf of Village on the Isle to “BB+” from “BBB-.” The rating outlook was revised from stable to negative. Key rating drivers include continued weak operations and liquidity, and continued occupancy concerns in the campus’ assisted living and skilled nursing cohorts.
  • Series 2014 and 2016 retirement facility revenue bonds issued by Mesquite Health Facilities Development Corporation (Texas) on behalf of Christian Care Centers were downgraded to a “D” rating from “B+.” The bonds were removed from ratings watch negative. Key drivers include a failure to pay the principal payments on its bonds that were due on Feb. 15. Due to ongoing financial difficulties that have been exacerbated by the coronavirus pandemic, CCC failed to make its payments toward debt service to the trustee since November 2020. The provider made the $1.3 million interest payment due on Feb. 15 from its own funds. About $4.3 million remains in the debt service reserve accounts.
  • Fitch assigned a ‘BBB-‘ issuer default rating to Brethren Hillcrest Homes, a CCRC in La Verne, California. The rating outlook is stable.

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