Transactions & Financings: Pennant Group Expands Credit Facility; Springpoint’s $115M Refinancing

The Pennant Group (Nasdaq: PNTG) gave itself more financial flexibility a year into the coronavirus pandemic.

The Eagle, Idaho-based company amended its revolving credit facility to $150 million, of which only $18.3 million was drawn as of February 22. Coupled with strong cash flow, expands Pennant’s ability to opportunistically target senior housing, home health and hospice acquisitions throughout the year, CFO Jenn Freeman said in a release announcing the expanded facility.

The expansion was backed by a lending consortium arranged by Truist Bank.


Sales and operator transitions

Commonwealth Senior Living acquires Maryland community

Commonwealth Senior Living acquired The Village at Harbor Point, a senior housing community in Salisbury, Maryland offering independent living, assisted living and memory care services. The community, which was formerly operated by Sterling Care, was rebranded as Commonwealth Senior Living of Salisbury.

Commonwealth will launch a $6.75 million capital improvement project later this year that will expand the community’s assisted living and memory care capabilities.

ESI closes $10M sale of New York assisted living facility

Evans Senior Investments completed the $10 million sale of The Terrace at Woodland, a 46-unit assisted living and memory care facility in Utica, New York. ESI represented the seller, an independent owner/operator, in the transaction.


AHEPA assumes operations of 2 assisted living facilities

AHEPA Affordable Housing Management Company reached an agreement with Gardant Management Solutions to assume operations of two affordable assisted living facilities in Indiana: Hellenic Senior Living of Indianapolis, and Hellenic Senior Living of New Albany.

Cushman & Wakefield sells Massachusetts assisted living facility

Cushman & Wakefield Senior Housing Capital Markets Vice Chairman Richard Swartz, Executive Managing Director Jay Wagner, Director Dan Baker and Associate Jack Griffin completed the sale of The Residences at Norton, a 72-unit assisted living facility in Norton, Massachusetts. Additionally, C&W also sold a 106-bed skilled nursing facility in the deal.

The seller was a pension fund investor, exiting the senior living space. The buyer is a joint venture between Harrison Street Real Estate Capital and LCB Senior Living. The buyer plans to upgrade the existing assisted living building, and convert the skilled nursing cohort to memory care and increased common area space.

Stellar Senior Living takes over former Brookdale community in San Diego

Stellar Senior Living assumed operations for the former Brookdale Carmel Valley, a 159-bed continuing care retirement community in San Diego. The community was rebranded Torrey Pines Senior Living — a Stellar Living Community.

The campus offers independent living, assisted living, memory care, and a skilled nursing facility, and is the fourth former Brookdale community to transition to Stellar.


Springpoint Senior Living secures $115M refinancing package

Springpoint Senior Living received a $114.8 million in Series 2021 bonds, Multi-Housing News reports. Proceeds will be used to refinance existing debt for its newly formed obligated group, which includes six of its New Jersey communities.

Ziegler underwrote the transaction, and Marathon Capital Strategies served as municipal advisor for Springpoint.

CBRE arranges $60M construction financing for Oregon community

CBRE National Senior Housing Vice Chairman Aron Will, First Vice President Austin Sacco and Vice President Adam Mincberg arranged a $60.4 million construction financing package on behalf of a joint venture between The Springs Living and Harrison Street Real Estate Capital, to develop The Springs at Happy Valley, a 210-unit senior housing community in Happy Valley, Oregon. Around half of the units will be independent living, the other half will be assisted living and memory care.

Lument assists Hillcrest Health with $41.5M refinancing package

Lument closed on a $41.5 million Freddie Mac loan for Hillcrest Country Estates Grand Lodge, a 162-unit senior living community in Papillion, Nebraska including independent living, assisted living and memory care services. Managing Directors and head of Lument’s seniors housing and healthcare team, Quintin Harris, spearheaded the transaction along with Managing Directors Doug Harper and Casey Moore.

The loan will be used to refinance existing bank debt, as well as provide cash-out proceeds.

Bank Leumi funds $23.5M refinancing for Prestige Care

Bank Leumi arranged a $23.5 million refinancing package for Prestige Care, a third-generation family operator of 80 senior living and rehabilitation centers across eight states in the western U.S. The package refinances one of Prestige Care’s ABL revolvers and a real estate term loan, which will enable it to support a portfolio of 356 operating beds across four skilled nursing facilities in Oregon and Washington and one assisted living facility in Arizona. It also allows Prestige to restore its liquidity and continue on its growth trajectory.

Merchants Capital secures development funding for Chicago affordable senior apartments

Courtesy of Worn Jerabek Wiltse Architects
A rendering of Montclare Senior Residences of Calumet Heights, an affordable senior apartment building to be built in Chicago.

Merchants Capital secured funding for the development of Montclare Senior Residences of Calumet Heights, a 134-unit affordable senior apartment community in Chicago’s Pill Hill neighborhood. The building will serve seniors 62 and older, with 104 units reserved for extremely-low, very-low and low-income households earning no greater than 60% of the area median income (AMI). Within this cohort, 34 units will be subject to a project-based Section 8 HAP contract administered by the Chicago Housing Authority and 21 units will have tenants who were referred by the statewide referral network. The property will also have 30 market rate units with no income restrictions, 14 accessible (Americans with Disabilities Act-compliant) units and three units with special accommodations for persons with seeing and hearing impairments.

Merchants Capital is the senior lender on the project.

Carnegie Capital arranged $16.5M refinancing package

Carnegie Capital Managing Partner JD Stettin secured a $16.5 million refinancing package for a 95-unit assisted living and memory care facility in Pennsylvania. The client is a national health care development fund, and the operator is a national operator. The lender is a regional bank.

Ratings Outlooks

Fitch affirms ratings on 2 CCRCs, revises outlook on 1 more

Fitch Ratings announced the following bond ratings

  • Fitch affirmed the “BBB-” rating on approximately $108 million in Series 2015B and 2018A bonds issued by the Wisconsin Health and Educational Facilities Authority on behalf of Saint John’s Communities. The rating outlook is stable. Key rating drivers include strong historical demand in its market, a $124 million expansion project that is nearing completion, and operations under pressure from Covid-19 expected to improve.
  • Fitch affirmed the “BB” rating on $86.2 million in Series 2018 first mortgage revenue bonds issued to Southminster, a CCRC in Charlotte, North Carolina. The rating outlook is stable. Key drivers include the completion of a $140 million, multi-phase campus repositioning plan, a planned $25 million repurposing of some skilled nursing units into independent living units moving forward, and continued strong demand for independent living.
  • Fitch affirmed the “B” rating on $157.5 million in economic development revenue and revenue refunding bonds issued by the Mayor and Council of Rockville, Maryland, to King Farm Presbyterian Retirement Community, aka Ingleside at King Farm. The rating outlook was revised to stable from negative. Key drivers include an improved liquidity position, and strong lease-up velocity for the community’s independent living garden-style apartments. However, the community’s debt load remains elevated, with approximately $142 million in long-term debt on the books as of December 30, 2020. Additionally, Ingleside at King Farm risks violating its debt service coverage and days cash on hand covenants.


GlynnDevins acquires Bluespire

GlynnDevins acquired Bluespire Strategic Marketing, an integrated marketing company with a proprietary scalable services platform. This is the second marketing and technology company the Kansas City, Missouri-based senior living marketing and advertising firm acquired in the past four months.

Bluespire has office locations in Minneapolis, Minnesota, and Hartford, Connecticut, and will now be branded as Bluespire – a GlynnDevins company.

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