Transactions & Financings: LTC Settles With Senior Care Centers and Abri Health Services; Terwilliger Plaza’s $155M Bond Issuance

The relationship between LTC Properties (NYSE: LTC) and two of its bankrupt tenants has come to an end.

The Westlake Village, California-based real estate investment trust (REIT) announced it reached settlement agreements with Senior Care Centers and Abri Health Services. LTC agreed to pay the skilled nursing providers $3.25 million in exchange for their assistance and cooperation in transitioning 11 skilled nursing facilities to a new operator, HMG Healthcare.

The properties will be added to a master lease already in place between LTC and HMG, and carry a 12-month term with rent based on cash flows, and payment subject to a six-month deferral. Additionally, LTC will provide HMG with a working capital loan, and will indemnify the operator for expenses incurred during the transition period, which is expected to be completed on Oct. 1, 2021.


With this settlement with the bankrupt Lessee behind us, we look forward to growing our association with HMG Healthcare and having these properties leased to an operator of our choice. We have had a long-standing relationship with the principals of HMG for over a decade and their involvement in reaching the settlement was instrumental,” LTC President and CEO Wendy Simpson said in a statement.

Sales and operator transitions

Asbury Communities acquires Pennsylvania community

Asbury Communities acquired Chandler Estate, a senior housing community in Pen Argyl, Pennsylvania offering independent living and personal care services for 127 seniors.

The acquisition brings the Frederick, Maryland-based company’s portfolio to nine communities in Maryland, Pennsylvania and Tennessee. Asbury’s Pennsylvania footprint encompasses five properties.


SLIB sells Oregon community for $15.5M

Senior Living Investment Brokerage Managing Director Jason Punzel, along with Vice Presidents Brad Goodsell and Vince Viverito, facilitated the $15.5 million sale of a 72-unit, 90-bed assisted living and memory care facility in Hillsboro, Oregon.

The seller was a local developer/operator. This was their only senior housing asset and the sale marks their exit from the industry. The buyer is a Texas-based private equity real estate firm, which appointed an operator based in the Pacific Northwest to manage the building.


Ziegler Completes $154.6M Financing for Oregon retirement community

Ziegler closed a $154.62 million bond issuance on behalf of Terwilliger Plaza, a retirement community in Portland, Oregon currently consisting of 246 independent living apartments, 43 assisted living apartments and 22 residential care beds. The Series 2021A, Series 2021B and 2021C bonds were issued through the Hospital Facilities Authority of Multnomah County, Oregon. The Series 2021A and 2021B bonds are exempt from federal and state income tax, while the 2021C bonds are exempt from State tax only. The bonds are rated “BB+” by Fitch Ratings.

Proceeds will fund an independent living expansion consisting of 127 independent living units: 106 two-bedroom units and 21 one-bedroom units ranging in size from 1,125 square feet to 2,305 square feet.

CBRE provides $19.5M refinancing for Seattle community

CBRE National Senior Housing Vice Chairman Aron Will, First Vice President Austin Sacco and Vice President Adam Mincberg arranged a $19.5 million refinancing package on behalf of a joint venture between Capitol Seniors Housing and a large university endowment. Proceeds will recapitalize the debt on harbor Pointe Senior Living, a purpose-built, 106-unit assisted living and memory care community in Seattle. The operator, Integral Senior Living, will stay on.

The seven-year, floating-rate loan carries four years of interest only, and originated through CBRE’s Freddie Mac Optigo lending program.

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