Transactions & Financings: United Church Homes & Services Rebrands; Capital Bay’s $590M European Senior Housing JV

United Church Homes and Services has a new name.

The Newton, NC-based nonprofit provider is rebranding as EveryAge, in conjunction with the organization’s 50th anniversary.

“While our name is changing, our mission and vision remain steadfast,” EveryAge President and CEO Lee Syria said in a statement. “EveryAge is committed to enriching lives by providing the right services, at the right time, in the right setting. We are honoring our legacy while broadening the role we play in helping individuals live life to the fullest.”

EveryAge serves over 2,000 older adults in North Carolina and Virginia via three retirement communities, seven affordable senior apartment buildings, and PACE (Programs of All Inclusive Care for the Elderly) programs. It ranks 92nd on the 2020 list of the 200 largest nonprofit providers, compiled by investment bank Ziegler and industry association LeadingAge.

Sales and operator transitions

Veritas adds 2 communities

Veritas Senior Living added two communities to its operating portfolio: Vantage Pointe Village, an assisted living and memory care facility in Ashland City, TN; and Gaines Park Senior Living, a personal care community in Kennesaw, GA.

These additions bring Veritas’ total operating portfolio to six communities. The Signal Mountain, TN-based operator has added three new communities in 2021, to date.

SLIB completes 2 sales

Senior Living Investment Brokerage completed the following transactions:

– Senior Vice President Patrick Burke and Vice President Dave Balow facilitated the sale of two identical 87-unit assisted living and memory care facilities in highly competitive markets in Tennessee. The seller is an independent owner/operator. The buyer is a joint venture between a REIT and an operator committed to building scale across the Volunteer state. Each site has adjacent land which enables future expansion or development.

– Balow was the sole broker in the $8 million sale of Manor Hills Assisted Living, an 87-unit, 137-bed assisted living and memory care facility in Wellsville, NY. The seller is a private owner exiting the industry. The buyer is an Albany, NY-based owner/operator looking to expand its footprint in the area.

Standard Communities acquires New Jersey affordable senior apartments

Standard Communities acquired New York Avenue Apartments, a 151-unit affordable senior apartment building in Atlantic City, NJ. Standard led a public-private partnership on the deal, with a total capitalization of $35.9 million.

Standard completed this transaction in partnership with the U.S. Department of Housing and Urban Development and the New Jersey Housing and Mortgage Finance Agency. The transaction was financed with Low Income Housing Tax Credits arranged in partnership with PNC Bank, with additional financing provided by Citibank. The firm will also launch a $10 million capital improvement project to modernize the building.

Capital Square 1031 acquires Florida manufactured housing community

Capital Square 1031 acquired Midway Estates, a 55-plus manufactured housing community consisting of 183 homes in Vero Beach, FL. The firm plans to invest $3.8 million in capital improvements to enhance quality and compete with surrounding communities obtaining significantly higher rents. 

Financings

Gulf Islamic Investments, Capital Bay announce $590M European senior housing JV

The Capital Bay Group, a Berlin-based fully integrated investment and asset manager, is entering a joint venture with Gulf Islamic Investments, a financial management firm based in the United Arab Emirates, to establish a platform of Shari’ah-compliant investments in European senior living. The platform will launch in September with an initial €500 million investment ($589.9 million U.S.), focusing on core plus and value-add opportunities.

The platform’s debut offering is slated for a first closing in the fourth quarter of 2021, funded by both debt and equity.

CBRE provides $10M acquisition financing for Seattle community

CBRE National Senior Housing Vice Chairman Aron Will, First Vice President Austin Sacco and Vice President Adam Mincberg arranged a $10 million bridge loan on behalf of a joint venture between Capitol Seniors Housing and a large university endowment. Proceeds funded the acquisition of Emerald Senior Living, a purpose-built, 119-unit assisted living and memory care community in Seattle. The operator, Integral Senior Living, will remain.

The two year bridge loan originated through CBRE’s proprietary multifamily bridge lending program, MF1 Capital.

Ratings Outlooks

Fitch announces bond rating updates on 6 CCRCs

Fitch Ratings announced the following bond ratings updates:

– Fitch assigned an “A-”rating to $48.3 million in retirement facilities revenue bonds to be issued on behalf of Givens Estates, a CCRC in Asheville, NC. Fitch also affirmed the provider’s “A-” issuer default rating. The rating outlook is stable, reflecting Givens Estates’ high consolidated independent living occupancy, solid demand indicators and low debt burden prior to the debt issuance that provides the organization sufficient capacity to absorb the additional debt from the new issuance at the current rating level. Proceeds from the pending issuance will fund the construction of 66 new independent living unit apartments, a new kitchen, dining room, assembly room and common space at Givens Highland Farms, and fund routine capital improvements and pay costs of issuance. Additionally, Givens Estates has approximately $59 million in direct bank purchase debt outstanding that is not rated by Fitch, but is incorporated into the analysis.

– Fitch affirmed the “BBB” issuer default rating and affirmed the “BBB” rating on Series 2013A, Series 2016 and Series 2020B health care facilities improvement revenue bonds issued by the County of Franklin, OH, on behalf of Ohio Living. The rating outlook is stable, reflecting the expected resilience of Ohio Living’s financial profile through Fitch’s forward-looking scenario analysis, midrange revenue defensibility as a multi-campus, diversified life plan community provider with adequate demand for independent living, and mid-range operating risk, with stable operations even through the stress of Covid-19.

– Fitch removed from under criteria observation, assigned a “BBB-” issuer default rating, and downgraded the rating on $45 million in Series 2012 revenue refunding bonds and $37 million in Series 2018 revenue bonds issued by the Hospital Facilities Authority of the City of Salem, OR on behalf of Capital Manor, to ‘BBB-‘ from ‘BBB.’ The rating outlook is stable, reflecting Capitol Manor’s strong demand in a strong market, solid operating profile, strong revenue defensibility and midrange operating risk assessments. 

– Fitch downgraded the rating on $162 million of revenue bonds issued by the New Mexico Hospital Equipment Loan Council and Oklahoma Development Finance Authority on behalf of members of the Haverland Carter Obligated Group , to “BB+” from “BBB-.” Fitch also downgraded to “BB+” from “BBB-” the rating on $6 million in Series 2017B subordinate senior living revenue bonds issued by the Colorado Health Facilities Authority on behalf of Haverland Carter Ralston Creek, and assigned a “BB+” issuer default rating. The rating outlook was revised from negative to stable, reflecting weaker occupancy and profitability due to COVID-19 operating pressures as well as the continual pressure from increased expenses resulting from management’s decision to relocate some of La Vida Llena’s health care residents to allow for the health care repositioning project to be completed one year ahead of schedule. HCRC is not in the OG, but its weak operations have required the OG to provide continual financial support that has inhibited the OG’s ability to improve its balance sheet.

– Fitch assigned a “BB” issuer default rating, and affirmed the “BB” rating on Series 2016 bonds issued by the Industrial Development Authority of the County of Prince William, Virginia issued on behalf of Westminster at Lake Ridge in Lake Ridge, VA. The rating outlook is negative, reflecting continued concern around management’s ability to sustain operational improvements and maintain cash at current levels while continuing to fund capital and debt obligations. Covid-19 continues to pressure occupancy at the campus health center, which has caused a drain on operations. If occupancy does not improve liquidity metrics deteriorate further from current levels, a downgrade is possible.

– Fitch assigned a “BBB-” issuer default rating to Friends Homes in Greensboro, NC, and affirmed the “BBB-” rating on $48.8 million in Series 2019 fixed rate Public Finance Authority revenue bonds, and $53.1 million in Series 2020A, Series 2020B-1 and Series 2020B-2 North Carolina Medical Care Commission revenue bonds. The rating outlook is stable, reflecting expected resilience of Friends Homes’ financial profile. Despite the pandemic, the provider continues to generate solid demand through its phased independent living expansions and renovations. New move-ins on Friends Homes’ Guilford Campus, consisting of 20 independent living units, are slated to be completed by Oct. 31. Presales on the west campus are slower – 45 of 55 new independent living units have been sold – but management anticipates the market will respond once they are constructed given their apartment-style cottage design.

Miscellaneous

DAC Acquisition LLC has entered into a merger agreement with Diversicare Healthcare Services (OTCQX: DVCR) for $10.10 per share in a deal announced on Aug. 27, Skilled Nursing News reports.