Transactions & Financings: Healthpeak’s $550M Cash Tender Offer; Bankruptcy Court Approves $76M Henry Ford Village Sale

Healthpeak Properties (NYSE: PEAK) continues to shore up its financial position.

The Denver-based health care real estate investment trust (REIT) announced cash tender offers for up to $550 million in senior notes due in 2025.

The offerings consist of $250 million in senior notes carrying a 3.4% interest rate, and $300 million in senior notes at a 4% interest rate. The offers will expire at 5pm Eastern on June 2, unless otherwise terminated.

Sales and operator transitions

Henry Ford Village sale approved by bankruptcy court

The United States Bankruptcy Court in the Eastern District of Michigan approved the sale of Henry Ford Village, a continuing care retirement community in Dearborn, Michigan, to HFV OPCO, LLC, an affiliate of Sage Healthcare Partners (“Sage”), for $76.3 million. The transaction remains subject to regulatory approvals and customary closing conditions, and all parties anticipate the sale will be completed in approximately 90 to 120 days.

Sage plans to incorporate Henry Ford Village into its existing network of senior living communities, and increase programmatic activities for residents and employees while investing to improve the campus. Sage has also pledged to uphold the CCRC’s current commitments to maintain the health, safety and lifestyle of its residents.

Boncrest Resource Group, ER Senior Management assume operations of 2 CCRCs

Subsidiaries of Boncrest Resource Group acquired operation of two CCRCs, Foxwood Springs in Raymore, Missouri, and Robin Run Village in Indianapolis, Indiana, from Brookdale Senior Living. The campuses will be managed for Boncrest by ER Senior Management, following a brief transition period from Brookdale.

The acquisitions are the first for Boncrest, a mission-driven, nonsectarian, nonprofit charitable organization based in Atlanta, Georgia. The group was formed in 2017 to address the challenges of providing quality services, activities, and programs that serve public and charitable interests in a rapidly changing healthcare environment. This change in leadership will bring Foxwood Springs and Robin Run Village back to their original not-for-profit roots.

Blueprint sells Texas CCRC

A Blueprint Healthcare Real Estate Advisors team of Executive Managing Director and Co-Founder Jacob Gehl, Senior Director Amy Sitzman, Managing Director Humair Sabir, and Senior Associate Giancarlo Riso completed the sale of The Parks, an entrance fee-based CCRC in Odessa, Texas. Terms of the deal, and the identities of the buyer and seller, were not disclosed.

Cushman & Wakefield completes $116M Florida portfolio sale

Cushman & Wakefield’s (NYSE: CWK) Senior Housing Capital Markets group completed the portfolio sale of The Addington at Wellington Green and The Institute for Healthy Living at Jupiter, two skilled nursing and assisted living communities located in Palm Beach County, Florida.

The Addington at Wellington Green is a 120-bed skilled nursing and 52-unit assisted living community built in 2011. The Institute for Healthy Living at Jupiter is a 129-bed skilled nursing, 62-unit assisted living, and 30-unit memory care campus that just completed construction and received licensure.

Vice Chairman Richard Swartz, Executive Managing Director Jay Wagner, Managing Director Aaron Rosenzweig, and Directors Dan Baker and Sam Dylag, were involved in the transaction.

SLIB completes $18M sale of Texas active adult community

Senior Living Investment Brokerage Managing Directors Matthew Alley and Bradley Clousing completed the sale of Legacy Park, an 81-unit active adult retirement community for residents age 55 and up in Granbury, Texas. The buyer is a Utah-based investor with other senior housing communities in Texas. The seller is a local owner/operator looking to exit the industry.

Chicago Pacific Founders acquires Texas community

Chicago Pacific Founders acquired The Shores at Clear Lake, a 100-unit senior housing community offering assisted living and memory care services in Houston. The seller was Meridian Realty Advisors.

JLL Capital Markets advised Meridian in the transaction, and arranged $21.3 million in acquisition financing through Freddie Mac. Managing Director Charley Bissell and Senior Managing Director Brian Carlton represented the seller. Financing was led by Managing Director Allison Holland.

Financings

Berkadia completes 2 financings totaling $133 million

Berkadia Seniors Housing & Healthcare secured financing packages for two senior housing facilities in Portland, Oregon. The total loan volume was $132.6 million.

Touchmark in the West Hills, which offers independent living, assisted living and memory care services, received an $82.4 million refinancing package through Freddie Mac. The seven-year loan was secured with 53% loan-to-value.

An unnamed 232-unit senior housing facility will receive a $50.2 million HUD 232/223(a)(7) loan, which will refinance existing HUD debt associated with the community.

CBRE completes $78M refinancing for Florida community

CBRE National Senior Housing Vice Chairman Aron Will, First Vice President Austin Sacco and Vice President Adam Mincberg arranged a $78 million refinancing package for an upscale senior housing community in early stage lease up in the Miami market.

CBRE secured the three-year, floating-rate loan with full term interest only through a debt fund.

14 Ohio senior apartments receive affordable housing tax credits

The Ohio Housing Finance Authority awarded more than $31.5 million in 10-year federal housing tax credits to 31 developments across the Buckeye State, including 14 developments serving seniors.

Among the recipients were Karam Senior Housing in Cleveland; Resolution Senior Apartments in Ashtabula Township; The Senior Village at Kettering Town Center in Kettering; and Trotwood Senior Lofts in Trotwood.

MassDevelopment issues $9M bond for affordable housing development

MassDevelopment issued a tax-exempt bond worth $9.143 million to St. Therese 4% LLC, an affiliate of The Neighborhood Developers. Proceeds will be earmarked to buy, clear and prepare a site in Everett, Massachusetts, on which the group will build a 33-unit affordable rental community for seniors. Boston Private Bank purchased the bond.

The development, St. Therese, will include 30 one-bedroom units and three two-bedroom units; 19 units will be rented to households earning no more than 60% of the area median income, and 14 units will be rented to households earning no more than 30% of the area median income.

Additionally, MassDevelopment assisted the Massachusetts Department of Housing and Community Development (DHCD) with the approval of federal low-income housing tax credits, which will provide approximately $5.5 million in equity for the project. DHCD also awarded subsidy funds in support of the development, as well as the adjacent 44-unit rental development.

Ratings Outlooks

Fitch announces bond rating updates on 3 CCRCs

Fitch Ratings announced the following bond ratings updates:

• Fitch assigned a “BB+” issuer default rating to, and affirmed the “BB+” rating on series 2016 revenue bonds issued by the town of Alhambra, California on behalf of Atherton Baptist Homes, a CCRC in Alhambra. The rating outlook is stable. Key rating drives include consistent demand in a stable market, and a solid balance sheet to provide financial stability in the face of future extreme events.
• Fitch assigned an “A+” issuer default rating to, and affirmed the “A+” rating on approximately $11 million in first mortgage revenue bonds issued by the Massachusetts Development Finance Authority on behalf of Berkshire Retirement Community, Inc., doing business as Kimball Farms, a CCRC in Lenox, Massachusetts. The rating outlook is stable. Key rating drivers include strong market position supporting robust demand for services, and a strong financial profile.
• Fitch assigned an “A” issuer default rating to, and affirmed the “A” rating on $42.3 million in Series 2016 revenue and refunding bonds issued by the East Hempfield Township Industrial Development Authority Health Center, and $37.2 million in Series 2019 revenue bonds issued by the Lancaster Industrial Development Authority on behalf of Willow Valley Communities, a retirement campus in Lancaster, Pennsylvania. The rating outlook is stable. Key rating drivers include being a single-site CCRC in the market, with a national reach for tenants; and a resilient financial profile that made it through moderate stress.

Miscellaneous

Front Porch merges three philanthropic foundations

Front Porch has merged three foundations — Pacific Homes Foundation, FACT Foundation, and Sunny View Foundation — into a single philanthropic foundation, the Front Porch Communities Foundation. The new foundation will be governed by a newly organized nine-member board of directors and supported by local community philanthropic committees.

Katharine Miller, who led the Covia Foundation for nine years, was named FPCF’s new Executive Director, working closely with Front Porch’s existing foundation executives, Keith Church, Jill Hammer and Bill Penrod.

The consolidated foundation will work to decrease administrative expenses, increase fundraising opportunities, and extend the culture of philanthropy throughout Front Porch communities, programs, and relationships. All past gifts made under the previous foundations will be honored and used for the community and purpose contributors designated.

KKR acquires Therapy Brands

Private equity firm KKR acquired Therapy Brands, a practice management and electronic health record software platform based in Birmingham, Alabama. Terms of the deal were not disclosed. KKR financed the deal through its Americas XII Fund. PSG, a private equity firm focused on investing in software companies and an existing investor in Therapy Brands, remains a minority shareholder.

myLifeSite launches new site to match seniors with CCRCs

myLifeSite, an online resource for consumers evaluating continuing care retirement communities, expanded its free online search and filtering capabilities to help consumers better analyze and compare the often-confusing options.

Consumers can narrow down and compare CCRCs based on what’s important to them, including:

• Type of floor plan
• Region and sub-region
• Community tax status (for-profit or non-profit)
• Type of residency contract (lifecare, fee-for-service, rental, equity, etc.)
• Services and amenities
• Hobbies and interests.