Transactions & Financings: New Senior Approves Ventas Merger; Five Star Update; Front Porch’s $306M Refinancing

Five Star Senior Living (Nasdaq: FVE) this week offered a business update, covering its transition of 108 communities to new operators, as well as occupancy improvements for the communities it will continue to operate for Diversified Healthcare Trust (Nasdaq: DHC).

Occupancy across the Diversified portfolio ended August at 74.7%, a 100 basis point improvement over July’s numbers. Occupancy across Five Star’s wholly owned communities ended August at 73.7%, a 320 basis point increase over the previous month.

To date, Five Star completed transitioning 62 of 108 smaller communities to other operators, and will complete the remaining communities by year-end. Additionally, all employees who work in its communities and Ageility clinics are fully vaccinated against Covid-19, with only 4.3% of its workforce resigning.


Sales and operator transitions

New Senior shareholders approve $2.3 billion Ventas acquisition

New Senior stockholders have approved the previously announced transaction with real estate investment trust Ventas (NYSE: VTR).

Under the terms of the deal, New Senior will become a subsidiary of Ventas. About 99.8% of the votes cast were in favor of the agreement, New Senior announced Tuesday.

“We are excited about our progress toward completing the transaction that enables Ventas to capture the powerful senior housing upside at a cyclical inflection point and complements our high quality diversified portfolio benefitting from demographic demand,” said Debra A. Cafaro, Ventas Chairman and CEO.


The merger is expected to close on or around Sept. 21, 2021.

National Church Residences acquires Georgia affordable senior housing community

National Church Residences expanded its affordable housing footprint in Georgia with the acquisition of McFadden Place, a 30-unit affordable senior housing community in Pembroke, Georgia for low income older adults age 62 and over.

National Church Residences acquired McFadden Place, an affordable senior housing community in Pembroke, Georgia.

The addition brings the providers total affordable footprint in the Peach State to 13 communities totaling 1,612 apartments, From Atlanta to Savannah.

Livingston Street acquires 2 Texas active adult communities

Livingston Street Capital acquired two 55+ active adult communities totaling 402 units in the Dallas-Fort Worth metropolitan area.

The properties include a 162-unit community in Fort Worth, which was rebranded as The Spring at Silverton; and a 240-unit property in Denton, Texas, rebranded as Sunstone Village. Livingston Street’s active adult and independent living portfolio now totals more than 1,500 units nationally – almost 600 units are centered in the Dallas-Fort Worth area.

SLIB brokers sale of Florida assisted living facility

Senior Living Investment Brokerage Senior Vice President Daniel Geraghty and Managing Director Bradley Clousing facilitated the sale of The Legacy at Highwoods Preserve, an 82-unity assisted living and memory care facility in Tampa, Florida. The seller developed the property in 2015, and disposed of the asset as it is looking to consolidate its portfolio within the central and southwest U.S. The buyer is Alta Senior Living, which is looking to strategically scale its Florida footprint.


Front Porch closes $306M refinancing package

Nonprofit provider Front Porch successfully refinanced the majority of its outstanding debt. The Glendale, California-based provider completed a Series 2021B tax-exempt bond issuance totaling nearly $305.6 million.

The issuance received over 50 participants, and was rated “A” by Fitch Ratings and “A-” by S&P. Both agencies affirmed Front Porch’s rating outlook as stable. The bond issuance reduces the provider’s aggregate debt service by $5 million annually, locks in long term committed capital, and levels overall aggregate debt service.

Ziegler closes 3 transactions totaling $109M

Ziegler completed the following financing packages:

— Ziegler closed an $80 million Series 2021 bond issuance for The Mayflower Retirement Center obligated group, owner and operator of Mayflower Retirement Community in Winter Park, Florida. The obligated group is undertaking a two-phase campus repositioning project consisting of a new health care center consisting of 24 private memory care units and 60 private skilled nursing rooms. Phase 2, which this issuance will cover, consists of 50 new independent living units, a clubhouse that will provide dining and social spaces, and the renovation of existing space currently used to house the skilled nursing beds into 21 assisted living units. Both the Series 2020A Bonds and the Series 2021 Bonds are rated BB+ (stable) by Fitch Ratings. Sawgrass Partners, LLC, is serving as the development consultant for the repositioning.

— Ziegler closed a $20.65 million Series 2021 bond issuance on behalf of Lifecare, Inc., doing business as Friendship Village Kalamazoo. The issuance consists of $8.685 million limited obligation revenue refunding bonds issued through the Michigan Strategic Fund and $11.965 million in limited obligation revenue and revenue refunding bonds issued through the Economic Development Corporation of the City of Kalamazoo. Proceeds, along with other available funds, will be used to refund the outstanding Series 2010 EDC Bonds and Series 2014 MSF Bonds, terminate an interest rate swap associated with the Series 2010 EDC Bonds, refinance other outstanding indebtedness incurred by the obligated group, finance or reimburse the costs of certain improvements to the community, fund a debt service reserve fund, and pay costs of issuance associated with the financing.

— Ziegler closed a $8.52 million Series 2021 bond issuance for Otterbein Homes Obligated Group, aka Otterbein SeniorLife. In 2020, the group acquired Sunset Retirement Communities, a CCRC with two locations in Ohio. Proceeds, along with other available funds, will be used to refund Sunset’s Series 2011 Bonds and to pay certain costs of issuance. Sunset will also be brought into Otterbein’s Obligated Group with this financing. The bonds are rated “A” by S&P.

Capital Funding Group closes $263M loan for multi-state long-term care portfolio

Capital Funding Group closed a $262.6 million refinancing package for a 29-property long-term care portfolio in California, Colorado and Wyoming.

The portfolio includes 28 skilled nursing facilities and one joint skilled nursing and assisted living facility, with a total of 3,140 beds. The portfolio is owned by a privately owned real estate investment group. Managing Director Erik Howard and Director Tim Eberhardt originated the transaction for Capital Funding Group.

Greystone closes 2 financing packages totaling $55M

Greystone closed the following financing transactions, totaling $54.7 million in volume:

— A $35.9 million construction financing package for a 150-unit senior housing development in Chesterfield, Missouri. The property will include 96 independent living, 37 assisted living and 17 memory care units. Managing Directors Matt Miller and Tyler Armstrong facilitated the deal, on behalf of a joint venture between Shelbourne Healthcare and Cedarhurst Senior Living.

— An $18.8 million financing package for a 136-unit independent living community in Warren, Michigan, operated by American House Senior Living Communities. Miller and Armstrong originated the package on behalf of the owners, a joint venture between AEW Capital Management and REDICO, a national real estate development and investment firm.

Bellwether Enterprise closes $11.4M refinancing package

Bellwether Enterprise Real Estate Capital Executive Vice President Victor Agusta originated an $11.4 million FHA insured loan to enable Catholic Charities of Baltimore to refinance DePaul House and Joachim House, two adjacent affordable housing developments for seniors in Baltimore, totalint 199 one- and two-bedroom units.

As part of the transaction, DePaul House renewed its Section 8 contract, and Joachim House received a new Section 8 Housing Assistance Payments (HAP) contract through the recently established Rental Assistance Demonstration (RAD) notice for the Project Rental Assistance Contract (PRAC) program, which allows Section 202 properties to be converted to Section 8 to maintain affordability and nonprofit ownership over the long-term. Additionally, $7 million of the proceeds are earmarked for capital improvements.

Ratings Outlooks

Fitch downgrades John Knox Village to ‘BBB+’; outlook negative

Fitch Ratings assigned a “BBB+” issuer default rating to John Knox Village, and downgraded the rating on $106 million in debt issued by the city of Pompano Beach, Florida, on behalf of John Knox Village. The rating outlook remains negative, reflecting the potential credit impact of Westlake, a 146-unit independent living expansion currently in progress, on the operator.

The rating downgrade factors in good demand supported by competitive pricing in the market, heavy capital expenditures, and operating metrics that are thin for a Type “A” provider.


CareTrack Health partners with athenahealth’s Marketplace program

CareTrack Health, a provider of patient adherence systems, partnered with athenahealth. through the company’s Marketplace program. As part of the athenahealth Marketplace, this newly integrated application is now available to athenahealth’s growing network of healthcare providers to help enable primary care physicians monitor critically and chronically ill patient care plan adherence and proactively identify and escalate earlier interventions in between appointments.

Presbyterian Senior Living, Linked Senior announce partnership

Presbyterian Senior Living and Linked Senior announced a partnership, where the nonprofit provider is rolling out Linked Senior’s resident engagement software platform across its communities.

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