Transactions & Financings: Focus’ $165M Portfolio Acquisition; Sabra’s $29M Transaction

Focus Healthcare Partners is adding more independent living to its senior housing portfolio.

The Chicago-based health care real estate investor acquired four independent living communities in the metro Atlanta market, totaling 559 units, for $164.5 million. The communities are operated by Edmond, Oklahoma-based owner and provider, Mansions Senior Living. Focus purchased the portfolio through its discretionary investment vehicle, Focus Senior Housing Fund I LP.

The sale was facilitated by real estate services firm Walker & Dunlop (NYSE: WD). Managing Directors Brett Gardner, Josh Jandris and Mark Myers, along with Senior Director Jordyn Berger. In conjunction with the sale, Walker & Dunlop Seniors Housing Finance Director Russell Dey arranged three loans through Freddie Mac on behalf of the buyer. 

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Sales and operator transitions

Welltower acquires New York senior apartment complex for $23M

Welltower (NYSE: WELL) acquired Carlton Hollow Apartments, a 126-unit senior apartment complex in Milton, New York, Albany Business Review reports. The purchase price was $23 million. The seller was Amedore Group, an Albany, New York-based developer, and Sunrise Management & Consulting, a property management company based in Latham, New York.

Sabra Acquires 2 senior housing facilities for $28.5 million

Sabra Health Care REIT (Nasdaq: SBRA) completed two deals, totaling $28.5 million.

In the first transaction, the Irvine, California-based health care REIT acquired The Clairborne at West Lake, a 100-unit assisted living and memory care facility in Augusta, Georgia. Sabra entered into a new management agreement with the existing operator, Claiborne Senior Living.

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Sabra also acquired a vacant senior housing facility in Gulf Breeze, Florida, and plans to convert it into a 60-bed addiction treatment center. The facility was added to an existing master lease between the REIT and Landmark Recovery, which leases five other addiction treatment centers from Sabra.

United Church Homes assumes management of 2 communities

United Church Homes signed management agreements with two senior housing communities: Community Care of Rutherford County (Tennessee) to operate a 131-bed skilled nursing facility in Murfreesboro, Tennessee; and Mansfield Memorial Homes, a senior living campus in Mansfield, Ohio providing a full continuum of residential and healthcare services including skilled nursing, short-term rehabilitation, assisted living and affordable independent living.

As part of the three-year agreement, Mansfield Memorial Homes CEO Miles Parsons is now an employee of UCH.

Recommended SHN+ Exclusives

JLL closes $26.8M Florida portfolio sale

JLL Capital Markets (NYSE: JLL) completed the $26.8 million sale of two senior housing properties in Florida: HarborChase of Naples, and HarborChase of Venice. The communities total 243 units/277 beds in assisted living, memory care and skilled nursing. JLL worked on behalf of the seller, Prime Care One, to complete the sale to the buyer, Pointe Group Care.

The team representing the seller was led by Managing Directors Cody Tremper and Mike Garbers and Associate Dean Ferris.

Blueprint completes sale of Georgia assisted living, memory care facility

Blueprint Healthcare Real Estate Advisors Senior Director Amy Sitzman, Director Brooks Blackmon and Associate Giancarlo Riso were the sole brokers in the sale of a 160-unit assisted living and memory care facility near Atlanta. The buyer has an extensive background of acquiring and operating distressed communities across the country, making its entry into the Georgia market.

SLIB completes sale of Georgia community

Senior Living Investment Brokerage Senior Vice President Dan Geraghty, Vice President Dave Balow and Managing Director Brad Clousing facilitated the sale of Mulberry Grove Senior Living, a 46-unit community in Statham, Georgia. The seller is a local owner-operator looking to retire and exit the industry. The buyer is looking to strategically expand its footprint across the Southeast.

Financings

CBRE arranges $85M refinancing package for Anthology Senior Living

CBRE National Seniors Housing arranged an $85 million refinancing package on behalf of a joint venture between CA Ventures and Partners Group for three senior housing properties operated by CA’s in-house senior living arm, Anthology Senior Living: Anthology of Grayslake, Anthology of Wheaton, and The Sheridan at Overland Park. CBRE Vice Chairman Aron Will, First Vice President Austin Sacco and Vice President Adam Mincberg led the transaction.

Regions Bank completes 2 transactions

Regions Bank Healthcare Real Estate completed the following financing transactions:

  • Regions completed a two-part financing package on behalf of Trilogy Health Services. Proceeds were used to facilitate the acquisition of four assisted living and nursing facilities in Kentucky, Michigan and Ohio. The first part of the package was a bridge loan underwritten by Regions for the acquisition in mid-2018. The full principal balance and costs to finance each of the four communities by way of Region’s HUD team was completed in late December 2020. The full principal balance plus much of the cost of closing for the bridge and HUD loans was funded by the HUD mortgages. The HUD mortgages provide non-recourse, fixed rate 35-year fully amortizing assumable loans.
  • Regions closed a $36.8 million new construction and permanent loan on behalf of a joint venture between a Colorado-based developer-operator and a West Coast-based private investor. Proceeds will fund construction of a community in a submarket of Portland, Oregon consisting of 83 assisted living and 32 memory care units. Managing Director Chris Honn originated the loan.

Ziegler closes 2 transactions totaling $58 million

Ziegler completed the following financing transactions:

  • Ziegler placed $38 million in Series 2021AB revenue bonds on behalf of Christian Retirement Homes, doing business as Eastmont, life plan community and hospice facility in Lincoln, Nebraska. Proceeds will be used to finance an expansion project including a new four-story, 50-unit independent living building, The Stratford; the conversion of 10 assisted living apartments in an existing building into five penthouse independent living units, and construction of new, modern amenities.
  • Ziegler closed $20 million in bonds issued through the Butler County Port Authority (Ohio) on behalf of Community First Solutions, a nonprofit providing a range of health and wellness services in Butler County, Ohio. The package consists of $15.31 million in tax-exempt Series 2021A bonds, which will partially fund the addition of 14 new independent living units and routine capital expenditures, refund a portion of outstanding debt, terminate an existing swap agreement and pay specific issuance costs associated with the financing. Additionally, proceeds from $4.69 million in federally taxable Series 2021B bonds will be used refund a portion of existing debt.

Lument completes 2 packages totaling $21M

Lument completed the following transactions:

  • Managing Director Steve McGee facilitated a $12.3 million bridge-to-agency loan for Market Street East Lake, a 64-unit memory care community developed by Watercrest Senior Living. The loan refinances construction debt and positions the property for permanent agency financing.
  • Vice President Miles Kingston originated an $8.3 million FHA Sec. 232/223(f) refinancing package on behalf of The Gardens by Morningstar, a 106-unit assisted living facility in Oswego, New York also offering select healthcare services and support for its residents. Proceeds will retire an existing bridge loan and reimburse the borrower for previous capital expenditures.

JLL arranges financing for California community

JLL Capital Markets represented Blue Mountain Enterprises and Calson Management in arranging financing for The Lodge at Piner Road, a 92-unit assisted living and memory care community under development in Santa Rosa, California. The value of the financing was not disclosed, but the loan was secured at a 75% loan-to-cost ratio through a private lender.

The team representing the borrower was led by Director Bercut Smith.

Eastern Union arranges $57M bridge financing package

Eastern Union’s Healthcare Group arranged a $57 million bridge financing package encompassing two skilled-care facilities in Florida and two more in Massachusetts. The four facilities carry an overall count of 544 beds.

The Florida communities represent $26 million of the overall transaction. The first is a 133-bed facility in Naples providing skilled nursing and assisted living services. The second community is a 146 bed center in Venice providing assisted living, memory care, and skilled nursing services. Both transactions were secured in cooperation with Eastern Union’s “President’s Team” consisting of President Ira Zlotowitz and Capital Markets Specialist Michael Wyne.

Ratings Outlooks

Fitch affirmed United Methodist Retirement Homes’ bond rating; outlook positive

Fitch Ratings affirmed the “BBB” Rating for $105 million in Series 2016A and 2017A bonds issued by the North Carolina Medical Care Commission on behalf of United Methodist Retirement Homes. The rating outlook was revised from stable to positive. Key rating drivers include consistently strong operations, an expansion project that is nearing completion, an improved financial profile in spite of pandemic-induced headwinds, and robust census across multiple locations.

Miscellaneous

Perkins Eastman, Pfeiffer announce merger

Global architecture and design firm Perkins Eastman announced that it will merge with Pfeiffer Partners Architects, a firm based in Los Angeles and New york known for its expertise in the arts, libraries, historic preservation, renovations, adaptive reuse, and interior design as well as creative design solutions.

Pfeiffer, now known as Pfeiffer—a Perkins Eastman Studio, will lead key practice areas in the combined firm, including in the arts, libraries, and renovation/preservation/adaptable reuse, joining Perkins Eastman leaders in HEST (higher education/science & technology), health care, senior living, large scale mixed-use, K-12, hospitality, and workplace design. The firms’ New York studios will co-locate, while their respective studios in Los Angeles, which are close to one another, will physically remain where they are, while being technologically connected.

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