Transactions & Financings: NHI’s Completes 8-Property, $115M Holiday Portfolio Sale; Bridge Sells Community for $15M

National Health Investors (NYSE: NHI) completed a sale of eight communities operated by Holiday Retirement. The total price was $115 million.

The communities total 909 units, and NHI expects to realize a gain on the sale of up to $2 million. To date, the company announced $203.4 million in dispositions and expects to end 2021 closer to the high end of a goal to sell $250 million to $400 million in assets.

These communities were among nine previously announced by NHI as being on the market. The Murfreesboro, Tennessee-based real estate investment trust (REIT) is weighing its options on the other 18 Holiday properties in its portfolio.

Sales and operator transitions

Bridge Investment Group sells Georgia senior living community for $18M

Bridge Investment Group sold Summer Breeze, a senior living community on Wilmington Island in Savannah, Georgia, to a 1031 investor. The closing price was $18 million.

Summer Breeze consists of 28 independent living, 39 assisted living and 12 memory care units. Bridge was represented by JLL Capital Markets (NYSE: JLL) Managing Directors Mike Garbers and Cody Tremper and assisted by Michael Sivewright in the sale.

Aegis Living, Blue Moon Capital acquires California community

Aegis Living and its investment partner, Blue Moon Capital Partners, acquired Aegis Living Corte Madera after leasing the building for 16 years. This acquisition brings the Bellevue, Washington-based operator’s wholly-owned portfolio to 33 buildings, or 80% of its total portfolio.

Previously, Aegis and Blue Moon partnered on a $350 million acquisition of 10 communities formerly owned by Healthpeak Properties (NYSE: PEAK).

Innovation Senior Living acquires Florida community for $10M

Innovation Senior Living acquired Wellington Elder Care, a senior housing community in Wellington, Florida offering assisted living services. The purchase price was $10 million.

This is Innovation’s third community under ownership and management, and the property was rebranded as The Club at Wellington. The new acquisition is part of the company’s five-year plan to add 12 to15 properties to its portfolio.

Financings

HJ Sims secures $45M taxable credit facility for human services nonprofit

HJ Sims closed a $45 million refinancing package for Elwyn, a Media, Pennsylvania-based nonprofit provider of support, treatment and education to children and adults with intellectual and developmental disabilities, autism and related behavioral health issues in the U.S. Elwyn delivers education, residential and community-based treatment, and vocational training programs to more than 20,000 individuals in California, Delaware, New Jersey, Pennsylvania, Rhode Island, Maine, Massachusetts, North Carolina, and Virginia. Elwyn generates approximately $400 million in annual revenue and employs over 3,500 people.

Sims conducted a comprehensive bank solicitation seeking a $45 million taxable credit facility, comprised of a $30 million line of credit and letters of credit for up to $15 million. The facility is secured by a pledge of gross revenues and a mortgage on Elwyn’s main campus on parity with Elwyn’s $56 million of outstanding tax-exempt bonds and tax-exempt/taxable bank debt.

CBRE arranges construction financing for Anthology Florida community

CBRE National Senior Housing Vice Chairman Aron Will, First Vice President Austin Sacco and Vice President Tim Root arranged a construction financing package for a joint venture between Anthology Senior Living and Harrison Street Real Estate Capital. The loan value was not disclosed. Terms include five years at a floating rate and 42 months of interest only, and originated from a regional bank.

Proceeds will fund the development of Anthology Boynton Beach, a 130-unit community in Boynton Beach, Florida offering assisted living and memory care services.

Marcus & Millichap arranges $4.6M acquisition financing for 2 Arizona communities

Marcus & Millichap (NYSE: MMI) Capital Corporation assisted the buyer, a senior housing operator and limited liability company, with securing a $4.6 million acquisition financing package. Proceeds were used to acquire two 30-bed assisted living and memory care facilities in Tucson, Arizona.

First Vice President Volt Migrino and Associate Alex Snyder assisted the buyer with the loan placement, which represents a 125% loan-to-value ratio and provides the buyer with working capital for improvements.

BH Properties provides Nevada owner/operator with $5M DIP financing

BH Properties California Nevada Methodist Homes (CNMH), an owner and operator of senior housing and continuing care retirement communities, with $5 million in debtor-in-possession (DIP) financing to fund day-to-day operations until regulatory approvals are obtained to sell two communities in Oakland and Pacific Grove to the highest bidder in a pending bankruptcy sale.

CNMH filed for Chapter 11 protection in the Northern District of California in March 2021 due to financial challenges created by Covid-19. The communities total 351 units, and collectively were 64% leased at the time of the filing. BH Properties originated the 13-month facility through its $200 million DIP platform.

Valley National Bank arranges refinancing for Florida operator

Valley National Bank completed a refinancing package on behalf of Vivant Senior Living. The package carries a valuation of $1.1 million. Proceeds will be used to refinance existing debt for Vivant at Versailles, which opened in December 2019 and dealt with operational pressures from Covid-19. The new loan carries lower interest and extends maturity to 2026.

Ratings Outlooks

Fitch announces bond rating updates on 3 CCRCs

Fitch Ratings announced the following bond ratings updates:

• Fitch assigned a “BBB-” issuer default rating, assigned a “BBB-” rating on $24 million in Series 2021A and B bonds, and affirmed the “BBB-” rating on $60.7 million in Series 2010, 2016 and 2018 bonds issued through various authorities to Christian Horizons, a nonprofit senior living provider in St. Louis. The rating outlook is stable, reflecting the advantages of a larger multi-site system balanced against the challenged rural markets in which Christian Horizons operates. The operator’s performance has been stable outside of expected pandemic fluctuations, and it continues to improve independent living and assisted living occupancy to eventually reduce its reliance on skilled nursing. Proceeds from the sale of Series 2021A tax-exempt bonds will be used to refund series 2010, fund $8 million in miscellaneous capital projects throughout the obligated group, and pay the costs of issuance. Series 2021B taxable bonds will be issued concurrently with the series 2021A, as permanent debt and will refinance a taxable corporate loan. There will be no changes in covenants or legal provisions.
• Fitch assigned a “BBB-” issuer default rating to United Methodist Retirement Communities and Porter Hills. Fitch also affirmed the “BBB-” rating applied to limited obligation revenue bonds issued on behalf of the operator by the Michigan Strategic Fund and the Economic Development Corporation of Grand Rapids. The rating outlook was revised from negative to stable, reflecting United Methodist-Porter Hills’ sound financial profile in the context of its midrange revenue defensibility and operating risk profile assessments. The outlook revision considers Fitch’s expectation that the operator should continue to benefit from the synergies generated from the group’s 2019 affiliation,
• Fitch affirmed the “A” issuer default rating for Lasell Village in Auburndale, Massachusetts, and removed the operator from under criteria observation. The rating outlook is stable, reflecting Lasell Village’s strong financial profile through Fitch’s forward-looking scenario analysis, in the context of the community’s robust demand profile. The community’s unique market position as a provider of educational senior living services in a socioeconomically favorable service area has helped support strong independent living occupancy and a robust waiting list. Operating performance has slightly deteriorated due to pandemic-related disruptions but is expected to fully recover in Fiscal Year 2022.

Technology

Element5 completes $15M Series A funding round

Element5, a post-acute care AI and robotic automation-based platform for post-acute and long-term care, closed a Series A funding round with $15 million in commitments, led by New York City-based venture capital firm Insight Partners. Jared Rosen, vice president at Insight, will join Element5’s board of directors.

Also subscribing in this round of financing is Maxwell Investment Partners, an investment firm specializing in technology investments.

Element5 will use the proceeds to accelerate its growth and scale global operations.

Miscellaneous

– Longmont Regent, a senior housing community in Longmont, Colorado, sold for $16.7 million.
– Greystone provided a $22.5 million bridge loan on behalf of Spring Creek Holdings to refinance Aspen Creek Senior Living, an assisted living facility in Anchorage, Alaska.