Transactions & Financings: Welltower Closes $750M Note Offering; Boston Financial’s $173M LIHTC Fund

Welltower (NYSE: WELL) is improving its liquidity debt maturities situations.

The Toledo, Ohio-based health care real estate investment trust closed a $750 million offering of 2.8% senior unsecured notes, due in June 2031.

Welltower will use the net proceeds to redeem $340 million of outstanding 3.75% senior notes due March 2023, and $335 million of outstanding 3.95% senior notes due September 2023. This will be completed on April 15. The remaining proceeds will be earmarked for general corporate purposes, including paying down a portion of a two-year unsecured term loan due in 2022, and investing in health care and senior housing properties. Following the completion of the redemption of the 2023 Notes, Welltower will have no unsecured senior note maturities until 2024.


J.P. Morgan, Barclays and MUFG served as representatives for the offering.

Sales and operator transitions

Juniper Communities expands Texas footprint

Juniper Communities assumed operations for Juniper Village of Preston Hollow, an assisted living and memory care facility in Dallas, Patch reports. The community was formerly managed by Brookdale Senior Living (NYSE: BKD).

Battery Group affiliate sells Florida community for $14M

An affiliate of Brooklyn, New York-based Battery Group sold Grand Court, an assisted living and memory care community in Pompano Beach, Florida, to the operator, an affiliate of Brooklyn-based The W Group, for $14 million, South Florida Business Journal reports.


JLL advises Claiborne Senior Living on 2 transactions

JLL Capital Markets (NYSE: JLL) advised CR Properties and Claiborne Senior Living on the sale of The Claiborne at West Lake, a 100-unit assisted living and memory care community in Augusta, Georgia, and secured $9 million of construction financing for The Claiborne at Brickyard Crossing, a development underway in the Charleston, South Carolina metropolitan area.

The Claiborne at West Lake was sold to Sabra Health Care REIT (Nasdaq: SBRA). Claiborne will continue to manage the community.

JLL secured mezzanine financing for the development of The Claiborne at Brickyard Crossing through Locust Point Capital.The representing team CR Properties was led by Senior Managing Director Brian Carlton and Managing Director Charley Bissell.

Recommended SHN+ Exclusives

Bridgewood acquires land for Nashville senior housing community

Bridgewood Property Company acquired land in the Green Hills section of Nashville for the development of a mid-rise, luxury retirement community offering independent living, assisted living and memory care services. The community will be convenient to the neighborhoods of Bell Meade, Forest Hills and Hillwood.

The property received zoning approval in February. Architecture and design firm ESa will be the architect of record for the project. Catalyst Design Group will provide civil engineering services.


Boston Financial closes $173M LIHTC fund

Boston Financial closed a $173 million low income housing tax credit fund, Boston Financial Institutional Tax Credits 54 Limited Partnership, composed of 16 multifamily and three senior housing communities totaling more than 1,500 affordable housing units. The fund will provide capital for new construction and rehabilitation of multi-family properties in 12 states: Arkansas, Arizona, California, Florida, Illinois, Kentucky, Louisiana, Massachusetts, North Carolina, New Hampshire, Pennsylvania, and Virginia.

HJ Sims arranges $102M financing for New York independent living community

HJ Sims arranged a $102.1 million financing for Fountaingate Gardens, an independent living community to be located in Commack, New York that is part of the Gurwin Healthcare System.

The tax-exempt bond issue was divided into two short-term entrance fee principal redemption bonds series and a long-term bond series: $31 million in Series 2021C bonds will be repaid when occupancy reaches 48%. $32.5 million in Series 2021B bonds will be repaid when occupancy reaches 86%, expected to occur in 2023. The balance, $38.613 million in Series 2021A bonds, has a final maturity of 2056.

NorthMarq completes $31M refinance of Merrill Gardens California community

NorthMarq Capital arranged a $31 million refinance of Merrill Gardens Rancho Cucamonga, a 112-unit senior housing community offering independent living, assisted living and memory care services in Rancho Cucamonga, California. Senior Vice President/Managing Director Stuart Oswald and Senior Director-Debt and Equity Gordon Mickelson arranged the permanent-fixed loan for the borrower through its relationship with a correspondent life insurance company.

The loan, structured prior to stabilization, was structured with a five-year term on a 30-year amortization schedule. The property performed is now approaching stabilized occupancy.

KeyBank arranges $23M for affordable senior housing property in Pennsylvania

KeyBank Community Development Lending and Investment provided a $23 million financing package for MVAH Partners, LLC, an affordable housing developer based in West Chester, Ohio, to develop an affordable senior housing project in Canonsburg, Pennsylvania. The package consists of an $11 million loan, and $12 million in 9% low income housing tax credit equity from Key Community Development Corporation.

Canonsburg Senior Lofts will consist of the adaptive reuse and new construction of an addition to a vacant former elementary school. The project, which is estimated to cost $14.8 million and be completed by the spring of 2022, will include 50 units of mixed-income senior housing – 42 units restricted to between 20% and 60% of the area median income and eight market rate units.

The project is being developed through a partnership between MVAH and Blueprints, which will provide all residents with enhanced supportive services, including health-related programming and an on-site service coordinator. Blueprints is a 501 (c)(3) nonprofit organization that mobilizes resources to help low-income individuals become and remain self-sufficient.

David Lacki and Laura Janosko of KeyBank’s CDLI team structured the financing. Ryan Olman, structured the equity.

Capital Funding Group Closes $89M bridge loan

Capital Funding Group closed an $88.9 million bridge-to-HUD loan to refinance a 239-bed assisted living facility in Queens, New York and a 184-bed assisted living facility in Brooklyn, New York. Both facilities are licensed assisted living program facilities by the State of New York.

Director Craig Casagrande and Senior Associate Andrew Jones originated the transaction.

Meridian Capital arranges financing for 8-property Southeast portfolio

Meridian Capital Group’s senior housing and healthcare team recapitalized and arranged financing for an eight-property senior housing portfolio in Kentucky, South Carolina and Tennessee. The package is part of a new joint venture between Harrison Street Real Estate Capital and the operator, Dominion Senior Living.

The portfolio comprises 296 independent living units, 172 assisted living units, and 79 memory care units. Senior Managing Directors and co-heads of Meridian’s senior housing and healthcare team, Ari Adlerstein and Ari Dobkin, Managing Director Josh Simpson, Vice President Matt Lesnik, and Associate David Gottlieb negotiated the transaction.

Scribner Capital provided a construction mezzanine loan for the development of Ativo Senior Living of Prescott Valley, sponsored by Link Senior Development. Ativo Senior Living of Prescott Valley will be a 136-unit senior living community consisting of a central building with 25 independent living units, 75 assisted living units and 30 memory care units, as well as six independent living cottages. The community will open in the summer of 2022.

Ratings Outlooks

Fitch announces bond rating updates on 6 CCRCs

Fitch Ratings announced the following bond ratings updates:

  • Fitch affirmed the “BBB” rating on $31.6 million in Series 2019 senior living revenue bonds issued by the California Municipal Finance Authority on behalf of Mt. San Antonio Gardens, a CCRC in Pomona, California. The rating outlook was revised to negative from stable. Key rating drivers include weak profitability and manageable leverage, and a potential debt issuance in 2021 that would likely result in a significant weakening of leverage metrics that pressure the current rating. Management’s expectation is to pursue a financing by the end of 2021.
  • Deerfield Episcopal Retirement Community, a CCRC in Asheville, North Carolina, had its “A” rating reaffirmed on $40 million in Series 2016 first mortgage revenue refunding bonds issued by the North Carolina Medical Care Commission. The rating outlook is stable. Key rating drivers include robust demand driving strong occupancy trends, sufficient core operations, and strong entrance fee cash flows which continue to grow liquidity.
  • Fitch affirmed the “BBB-” rating on $106 million in Series 2017 senior living community revenue bonds issued by the Tulsa County Industrial Authority on behalf of Montereau, a life plan community in Tulsa, Oklahoma. The rating outlook is stable. Key rating drivers include adequate operations despite pressures brought on by Covid-19, strong core operations, and operating performance driving liquidity growth.
  • East Ridge Retirement Village, a CCRC in Cutler Bay, Florida, remains on ratings watch negative on the “B-” rating assigned to $69 million in Series 2014 health facilities revenue bonds issued by the Aluch County Health Facilities Authority. Key rating drivers include East Ridge being a single-site community with weak demand, and limited capital investment in recent years and weak profitability.
  • Fitch affirmed the “BB+” issuer default rating on $80 million in Series 2017 A and B revenue refunding bonds issued by the Colorado Health Facilities Authority on behalf of Frasier Meadows, a life plan community in Boulder, Colorado. The rating outlook is stable. Key rating drivers include strong demand and pricing characteristics for a single-site community in the market, stable core operations and significant capital improvements in the works, stable liquidity and elevated leverage.
  • Fitch assigned a “BB+” rating to John Knox Village’s Series 2021A tax-exempt revenue bonds series issued by The Industrial Development Authority of The City of Lee’s Summit, Missouri. The agency also assigned a “BB+” issuer default rating, and affirmed JKV’s “BB+” revenue bond rating on approximately $114 million in outstanding bonds, previously issued by The Industrial Development Authority of The City of Lee’s Summit, Missouri. Key rating drivers include stable independent living occupancy, sufficient core operations, and new projects supporting stable liquidity.


United Church Homes announces $18M fund for older adults

United Church Homes announced the creation of the “Fund for Growth” in conjunction with the receipt of the largest single gift in the 105-year history of the organization — a $17.5 million anonymous donation through the nonprofit provider’s Campaign for Abundant Life.

The Fund for Growth will support continued innovation in programming and services for more older adults. Specifically, it will:

  • Expand UCH’s use of innovative technology and connectivity for current and future residents
  • Provide service coordination and personal care programs to UCH owned and client communities and the public at large
  • Support capital renovation and enhancements to UCH communities over the next five years and fund construction of new older adult communities
  • Provide the resources for strategic acquisitions of middle-market independent living communities for active, older adults.

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