Transactions & Financings: Lifespace Sells 2 CCRCs; Cano Health Completes $4.4B SPAC Deal

Lifespace Communities continues to make progress in its efforts to streamline its portfolio for growth.

The West Des Moines, Iowa-based nonprofit continuing care retirement community operator announced it is turning over ownership and management of two campuses — Deerfield, in Des Moines, Iowa; and Grand Lodge at the Preserve in Lincoln, Nebraska — to Immanuel Communities.

Omaha, Nebraska-based Immanuel owns and operates 16, 55+ active living, independent living, assisted living and long-term care retirement communities on nine campuses. Additionally, its Immanuel Pathways line operates three PACE (Program of All-Inclusive Care for the Elderly) centers in Iowa and Nebraska.

Terms of the deal were not disclosed. Lifespace did not return a request for comment from Senior Housing News.

Affiliations

Cano Health, Jaws Acquisition completes affiliation; will begin trading on New York Stock Exchange

Cano Health, a value-based primary care provider for seniors and underserved communities, completed a business combination with Jaws Acquisition Corp. (NYSE: JWS). The affiliation, which was approved by Jaws’ stockholders at a special meeting on June 2, will enable Cano Health to achieve its vision of becoming America’s leader in primary care and accelerate the company’s growth.

Beginning June 4, Cano Health’s shares of Class A common stock will trade on the New York Stock Exchange under the symbol “CANO.” The company announced the deal with Jaws in November 2020, valuing the company at around $4.4 billion and providing $935 million to grow and pay down debt.

Dr. Marlow Hernandez will continue to lead Cano Health as CEO and chairman of the board, alongside the company’s executive team: Chief Clinical Officer Dr. Richard Aguilar; Chief Financial Officer Brian Koppy; Chief Compliance Officer and General Counsel David Armstrong; Chief Strategy Officer Dr. John McGoohan; Chief Population Health Officer Pedro Cordero; Chief People Officer Jennifer Hevia; President of Cano Medical Centers Gina Portilla; President of Healthy Partners Bob Camerlinck; SVP of Acquisitions Joel Lago; and Chief Brand Officer Barbara Ferreiro.

As a result of the business combination, Cano Health received approximately $1.49 billion of gross proceeds, including approximately $690 million of cash held in Jaws’ trust account and $800 million from private placement (PIPE) investors including Barry Sternlicht and funds affiliated with Fidelity Management & Research Company LLC as well as funds and accounts managed by BlackRock, Third Point and Maverick Capital.

Sales and operator transitions

NewCourtland acquires Philadelphia senior apartment building

NewCourtland Senior Services, a Philadelphia-based nonprofit dedicated to providing services and care for seniors, acquired Burholme Senior Apartments, a 62-unit independent living apartment building where each resident’s rent is capped at 30% of their monthly income. The property was previously under the management of Wesley Enhanced Living.

Cushman & Wakefield completes 3 transactions

Cushman & Wakefield’s (NYSE: CWK) Senior Housing Capital Markets team completed $250 million in senior housing and long-term care sales volume in April 2021.

This activity included advising Lytle Enterprises on the sale of Broadway Proper, a 232-unit, independent and assisted living community located in Tucson, Arizona. The property was acquired by a joint venture between Harrison Street Real Estate and Stellar Senior Living. This team also advised the buyer on its acquisition financing, procuring non-recourse bridge financing from a national bank.

Additionally, Cushman & Wakefield advised a large public REIT on the disposition of two assets. The first asset, Brookdale West Bay is an assisted living and memory care community located in the Providence Rhode Island market and was acquired by an east-coast private equity firm. The second asset, Sienna at Otay Ranch, is a 111-unit, assisted living and memory care community that opened in 2018.

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 sale of Oregon assisted living community

Senior Living Investment Brokerage Managing Directors Jason Punzel, Brad Goodsell and Vince Viverito completed the sale of a 95-unit/107-bed assisted living and memory care facility in Ashland, Oregon. The buyer is a Utah-based investor with other senior housing communities in Texas. The seller is a regional owner/operator looking to exit or focus on its core assets. The buyer is planning improvements to the community.

Financings

Sienna Senior Living completes $125M senior debt offering

Sienna Senior Living (TSK: SIA) completed its previously announced offering of $125 million of series C senior unsecured debentures. The offering was led by TD Securities, BMO Capital Markets and CIBC Capital Markets, as joint lead agents and bookrunners. The debentures carry a coupon rate of 2.82% annually and will mature on March 31, 2027.

Sienna will use the net proceeds from the offering to repay existing indebtedness and for general corporate purposes.

BAW Development Secures $94M construction financing for New Jersey redevelopment

BAW Development closed on a $94 million financing package for the redevelopment of the Hinchliffe Stadium Neighborhood Restoration Project (HSNRP), in Paterson, N.J., which includes Hinchliffe Stadium, one of just two remaining stadium structures that was home to a Negro League baseball team. The redevelopment includes the construction of a six-story, 75-unit affordable senior housing building.

The financing comes via a combination of private loans, tax credits and other vehicles, including a $60 million construction loan from Goldman Sachs and $10 million in new market tax credit and federal historic tax credit equity from U.S. Bancorp Community Development Corporation, U.S. Bank’s tax equity and community development subsidiary.  

The financing also includes $21 million of new market tax credit allocation from four community development entities (CDE): Community Loan Fund of New Jersey, Consortium America, RBC Community Development and USBCDE. The Passaic County Improvement Authority also issued a bond in support of the project, purchased by Goldman Sachs through its construction loan, which serves as a bridge loan for the New Jersey Economic Redevelopment and Growth (ERG) credits.

All financing was managed by BAW’s partner on the redevelopment, RPM Development Group.

Cushman & Wakefield arranges $61M in construction financing

Cushman & Wakefield’s Senior Housing Capital Markets team procured two construction loans totaling $61 million.

The first transaction was a $32 million construction loan for the development of The Waters of Pewaukee, a 161-unit, independent living, assisted living and memory care community located in Pewaukee, Wisconsin. The loan was provided by a national healthcare lender and the borrower was a joint venture between The Waters and a private equity partner.

Cushman & Wakefield also closed on a $29 million construction loan on behalf of a joint venture between Avenida Partners and LaSalle Investment Management for a Class-A, 154-unit active adult project located in the Denver metro area.

CBRE secures $43M construction financing package

CBRE National Senior Housing Vice Chairman Aron Will, First Vice President Austin Sacco and Vice President Matthew Kuronen partnered with Executive Vice Presidents John Parrett and Peter Marino from CBRE Chicago’s Debt and Structured Finance team on a five-year, $43 million construction loan for an active adult community being built in the Chicago market.

The loan is floating-rate with 42 months of interest only through a national bank.

Ratings Outlooks

Fitch announces bond rating updates on 2 CCRCs

Fitch Ratings announced the following bond ratings updates:

• Fitch downgraded the ratings on $29.6 million in series 2013 revenue bonds, and $19.4 million in series 2014A revenue bonds issued by the New Jersey Economic Development Authority (NJEDA) on behalf of United Methodist Homes of New Jersey, now doing business as United Methodist Communities, to “BB+” from “BBB-.” The rating outlook was revised from stable to negative. Key rating drivers include poor revenue defensibility driven by weak independent living occupancy, declining liquidity and operations, and a moderate debt burden.
• Fitch affirmed the “A-” issuer default rating on Maine Life Care Retirement Community, Inc., doing business as Piper Shores. The rating outlook is stable. Key rating drivers include being a destination retirement community with a national sales draw supporting strong demand, an ongoing expansion project, and consistent cash flow offsetting weaker operations.

Miscellaneous

WellSky Foundation awards $50K grant to nonprofit

The WellSky Foundation gifted $50,000 to Second Wind Dreams, a nonprofit organization recognized worldwide for its Virtual Dementia Tour sensitivity training program, and its dedication to changing the perception of aging through the fulfillment of dreams. Second Wind Dreams will use the funding to provide educational scholarships and training to caregivers in underserved elder care communities.

VDT is an evidence-based program that allows caregivers to step directly into the viewpoint of their patients by temporarily altering their physical and sensory abilities, and mimics changes associated with cognitive deterioration.