Transactions & Financings: Diversified Announces Management Agreement With Stellar Senior Living; Sagora Assumes Management of Embark Texas Community

Diversified Healthcare Trust (Nasdaq: DHC) made further progress on its transition of 108 communities operated by Five Star Senior Living (NYSE: FVE).

The Newton, Massachusetts-based health care REIT on Monday announced a management agreement with Stellar Senior Living for nine skilled nursing communities and one continuing care retirement community totaling 1,152 units in Colorado, Texas, and Wyoming. Stellar is based in Midvale, Utah.

Diversified now has new management agreements in place for approximately 70% of the communities it is transitioning from Five Star. Other operators include Charter Senior Living, Phoenix Senior Living and Oaks Senior Living.


Sales and operator transitions

United Church Homes acquires Ohio age-restricted independent living community

United Church Homes acquired The Polaris Retirement Community, a 136-unit independent senior living community for ages 55 and up in Columbus Ohio, from Polaris Retirement Living Properties, LP – a joint venture between Graziano Construction and Development Company, Inc., and Sweetbay Senior Living.

The property will be rebranded as United Church Homes, The Polaris Community, and is the nonprofit’s first independent living senior community in central Ohio.

Sagora Senior Living named new operator of Embark Texas community

Sagora Senior Living is now the operator for Embark at Willowbrook Park, an independent living community in Houston, Texas. The community was rebranded as Elison Independent Living at Willowbrook.


The addition expands Fort Worth, Texas-based Sagora’s portfolio to 45 communities in Alabama, California, Florida, Oklahoma, and Texas.

Blueprint sells Ohio independent living community

Blueprint Healthcare Real Estate Advisors Managing Director Connor Doherty and Associate Ryan Kelly facilitated the sale of a 100-unit, villa-style independent living community within the Canton-Massillon, Ohio market. The buyer is a private owner-operator looking to expand its footprint in the market.

Blueprint also supported the buyer in sourcing equity capital to complete the transaction.

Bloom Senior Living sells assisted living communities in Florida, Ohio

Kandu Capital and its operating company, Bloom Senior Living, completed the sale of two assisted living and memory care facilities: The Bloom at Lakewood, a 91-unit assisted living facility in Lakewood, Ohio, for $11.8 million; and Bloom at St. Petersburg, a 94-unit assisted living and memory care community in St. Petersburg, Florida, for $12.5 million.

Alex Vice of Walker Dunlop and Ross Sanders of Newmark represented Bloom on the Ohio and Florida transactions, respectively.

Senior Living Investment Brokerage completes 2 transactions

Senior Living Investment Brokerage completed the following transactions:

  • Managing Director Jason Punzel, along with Senior Vice Presidents Brad Goodsell and Vince Viverito, were the sole brokers in the sale of a 27-unit/35-bed memory care community in Maupin, Oregon. The seller is a regional owner-operator now focusing on larger communities in major West Coast metropolitan areas. The buyer is an Idaho-based owner-operator specializing in smaller communities.
  • Punzell, Goodsell and Viverito facilitated the sale of a 129-unit independent living community in Glendale, Arizona. The seller was a regional developer, leasing the community to the operator. The buyer is a real estate investment trust, which will keep the operator in place.


Trez Capital provides $48M loan for Florida active adult community

Private real estate lender Trez Capital provided a $48 million new construction loan to fund construction of The Alloro at University Groves, a 183-unit, 55-plus rental community in Sarasota, Florida. Construction is underway, and the project is expected to be delivered in approximately two years. Scott Mehlman, vice president, originations at Trez Capital,originated the loan on behalf of US Senior, Inc., a developer and manager of independent senior living communities with properties in Colorado, Florida, Georgia, Illinois, and New York. This is the company’s entry into Sarasota.

Oxford Finance closes $28M credit facility with AvantGarde Senior Living

Oxford Finance closed a $28 million senior credit facility on behalf of AvantGarde Senior Living, an operator of two assisted living facilities in California. Proceeds will be used to refinance existing debt on the AvantGarde’s Tarzana facility

CBRE arranges $15.2M acquisition financing for Solera Senior Living Florida community

CBRE National Senior Housing Vice Chairman Aron Will, First Vice President Austin Sacco, and Vice President Matthew Kuronen arranged a $15.2 million acquisition financing package on behalf of Berkshire Residential Investment for Preserve at Clearwater, an 82-unit luxury senior housing community in Clearwater, Florida operated by Solera Senior Living.

The 10-year, floating rate loan comes with five years of interest only through CBRE’s Fannie Mae DUS Multifamily loan origination program. Solera will continue to manage the community.

Ratings Outlooks

Fitch announces bond rating updates on 4 CCRCs

Fitch Ratings announced the following bond ratings updates:

  • Fitch removed from “under criteria observation’ and affirmed the “BBB” ratings on $87 million in Series 2017 revenue refunding bonds issued by Montgomery County Higher Education and Health Authority on behalf of Philadelphia Presbytery Homes, Inc. (PPHI) obligated group (OG), doing business as HumanGood Pennsylvania (HGPA). Additionally, Fitch has assigned a “BBB” issuer default rating (IDR) to HGPA. The rating outlook remains negative, reflecting ongoing pandemic-related pressures on operating and financial profiles, which have experienced softening census and weaker net entrance fee receipts over the past 18 months. However, the rating affirmation rating reflects HGPA’s solid balance sheet with approximately 65% cash to adjusted debt in fiscal 2020, strong historical maximum annual debt service coverage levels that have averaged 1.9x over the past four fiscal years, and the ongoing Rydal Waters independent living unit expansion project, which is expected to significantly boost operations and coverage levels once completed.
  • Fitch assigned an “A-” issuer default rating to HumanGood California Obligated Group (HGCOG), and affirmed the “A-” ratings on $142 million in Series 2019A revenue and refunding bonds issued by the California Municipal Finance Authority on behalf of HGCOG, as well as $23 million in Series 2019B HGCOG taxable bonds. Additionally, Fitch has affirmed the “A-” ratings on $43 million in Series 2013A and Series 2015 revenue bonds series issued by California Statewide Communities Development Authority (CSCDA) on behalf of American Baptist Homes of the West (ABHOW), which is now known as HumanGood Norcal (NorCal). The rating outlook is stable, reflecting HGCOG’s diverse operating platform with 14 life plan communities in operation across the state of California, solid historical demand indicators, consistent operational performance, and improving financial profile. Despite pressures from the pandemic, HGCOG further improved its unrestricted reserves in fiscal 2020 while maintaining core operations consistent with historical levels.
  • Fitch assigned an “AA” issuer default rating to Immanuel Obligated Group (Immanuel OG) and affirmed the “AA” rating on approximately $160 million of revenue bonds issued by Nebraska Educational, Health, Cultural, and Social Services Finance Authority on behalf of Immanuel. The rating outlook is stable, reflecting strong consolidated credit quality due to the resource base of Immanuel OG’s parent, Immanuel, which guarantees the bonds. The guarantee is supported by all resources available at the parent, and Immanuel has ample unrestricted liquidity relative to expenses and liabilities.
  • Fitch assigned a “BB” issuer default rating to Heritage Community of Kalamazoo Obligated Group (HCK OG). Fitch also affirmed the “BB” ratings assigned to approximately $51 million of limited obligation revenue bonds issued by the Economic Development Corporation (EDC) of the City of Kalamazoo, Michigan on behalf of HCK OG. The rating outlook is stable, reflecting modest financial profile in the context of its midrange revenue defensibility and operating risk profile assessments. Cash-to-adjusted debt is sound for a below investment grade LPC, and Fitch expects the ratio to improve in the forward-looking scenario analysis, including over time in a stress case.