Transactions & Financings: Solera Senior Living Expands; Harrison Street, Revera JV Acquires Portfolio

Berkadia and Solera Senior Living announced the acquisition of the Edgeworth Park at New Town assisted living and memory care community in early November.

Berkadia announced the deal on behalf of Connecticut-based Wheelock Street Capital from sellers Jon Liebler, Derek Robertson, and Scott Wise.

Solera will partner with Wheelock Street Capital and serve as the new operator of the community.

Edgeworth Park, located in Williamsburg Virginia, consists of class-A assisted living and memory care and includes 83 units.

The units include memory care suites with the studio, one-bedroom, and two-bedroom options.

Acquisitions and operator transitions

Berkadia announces another sale

Berkadia announced the sale of Homestead Village Retirement Community to Twin Light Capital on Oct. 12, according to a release. The community, located in Pensacola, Florida has 176 units and consists of independent living, assisted living, and memory care.

Based in New Jersey, Twin Light Capital’s reported goal for the purchase is to create value through capital improvements and by improving operations.

The sale was made to refocus the owner’s efforts closer to home, according to Berkadia Director, Brooks Minford.

Berkadia closed the deal on behalf of the seller, an Alabama-based non-profit.

REIT sells Indiana community

Evans Senior Investments helped a publicly-traded REIT sell an Indiana-based assisted living community with a negative margin.

The community had stable occupancy levels as recently as 2018, but at the time of the sale, the occupancy was at 60%.

According to a press release, the issues were competition in the surrounding submarket.

The buyer is a regional player with an existing presence in the state of Indiana.

Memphis active adult community trades

A Memphis-area active adult community with a refurbishment upside has been sold, facilitated by Senior Living Investment Brokerage.

The seller is a regional owner with various real estate investments and the buyer is a multi-family group from Southern California that is looking to increase its footprint in the active adult space.

The community, called Hickory Hills, is more than 160,000 square feet and includes 150 units. The upside opportunity comes by way of a fire that damaged 10 units. Rebuilding those units can increase the total to 160.

First-time buyer for Bluegrass Assisted Living

SLIB also facilitated the sale of Bluegrass Assisted Living to a first-time buyer in the seniors housing space.

Bluegrass Assisted Living includes two separate Kentucky locations, one in Bardstown and the other in Elizabethtown. Combined there are 84 units between the sites.

The seller, a California-based owner/operator, is exiting the seniors housing space.

Harrison Street and Revera acquire portfolio in joint venture

Investment firm Harrison Street and owner/operator Revera Inc. announced a joint venture to acquire a portfolio of four luxury retirement living communities in Ontario, Canada.

The JV will share ownership of four of Revera’s luxury communities, which Revera will continue to operate.

The portfolio has 537 senior apartments, independent and assisted living and memory care units across the properties, which are located in the Toronto and Cambridge areas.

For Harrison Street, this acquisition is the third investment in its Canada Alternative Real Estate Fund. The fund has an initial investment capacity of more than $550 million to invest in a number of sectors including senior living.

Revera is based in Canada and owns or operates more than 500 properties across Canada and the U.S., and is the majority owner of McLean, Virginia-based Sunrise Senior Living.

The Goodman Group adds to portfolio

The Goodman Group recently made the Discovery Care Centre the seventh Montana community in its portfolio and the 36th nationwide.

The Discovery Centre offers skilled nursing, assisted living, and memory care in the Bitterroot Valley area of Montana, a short drive from Missoula.

The Goodman Group, based in Chaska, Minnesota, plans to add several programs and services to those already in place at the Discovery Care Centre including restaurant-style healthy dining, fitness routines, and military appreciation.

Assisted living, memory care community trades in Idaho

Streamside Assisted Living and Memory Care in Nampa, Idaho, has traded hands.

The buyer is an “emerging group in the Pacific Northwest,” according to the transaction announcement from Blueprint, which marketed the deal. The sellers are locally based, have been in the senior living industry for over two decades and will focus on their remaining operations.

The buyer plans to make limited capital improvements, and also acquired adjacent land in the purchase.

The community includes 54 assisted living units and 25 secured memory care units.

Financings

Greystone’s Freddie, bridge activity

On Oct. 26, Greystone provided $28.2 million in a Freddie Mac Optigo loan to refinance a senior living housing property in Texas, operated by Civitas Senior Living.

The non-recourse loan carries an adjustable rate with a 10-year term and a 30-year amortization with five years of interest-only payments, according to a press release.

Greystone’s Managing Director on its Senior Housing Capital Markets Team, Tyler Armstrong, originated the loan on behalf of Stone Creek Real Estate Partners in order to refinance the property.

Armstrong said that the execution provides a permanent exit from construction financing so that they can focus on providing care.

The property, built in 2019, consists of 96 units and includes Class A+ independent living, assisted living, and memory care. It is located close to Medical Center North Hills.

In early November, Greystone announced it provided $13.6 million in a bridge loan that it hopes will transition to permanent HUD-insured financing for the acquisition of a senior housing campus in West Palm Beach, FL.

Gold Standard of Care, a long-standing player in the sector, chose Greystone to finance the deal.

The campus, purchased from National Healthcare Investors (NYSE: NHI), is a 144-bed senior housing campus that includes assisted living, memory, care, and skilled nursing. It combines two senior living communities — Savannah Court and Savannah Cove.

Harrison Street also closed with Greystone for the acquisition of four properties in the second tranche of financing in Harrison Street’s portfolio.

The properties have 465 units and are a portion of a portfolio that includes 24 senior housing communities that Harrison Street acquired for about $1.2 billion. Greystone closed financing for 16 of those properties earlier this year.

Ziegler works with Christian Living, other nonprofits

Specialty investment bank Ziegler announced a series of financing moves.

First, the specialty investment bank secured $32.5 million in series 2021 bonds for Christian Living Neighborhoods.

Christian Living Neighborhoods is made up of three separate communities located south of Denver, providing housing, health care, and community outreach for more than 1,000 seniors.

CLN is owned and operated by non-profit Christian Living Communities.

According to a press release from Ziegler, this decision saves CLN about 50 bps in yield which is more than $150,000 of annual debt service.

Secondly, Ziegler announced the closing of more than $47 million in series 2021 bonds for the Pennsylvania non-profit Redstone Presbyterian SeniorCare Obligated Group.

Redstone operates about 500 senior living units on three separate campuses that are referred to as Redstone Highlands which are located in Westmoreland County, Pennsylvania, near Pittsburgh.

Redstone partnered with Ziegler to conduct a full-market bank search because its $47 million capital structure, comprised completely of bank debt, was set to expire in 2021.

The EveryAge Obligated Group also secured a closing with Ziegler. EveryAge (formerly United Church Homes and Services), a North Carolina non-profit, closed with Ziegler on more than $76 million in series 2021 A-D Bonds.

EveryAge Obligated group includes three life plan communities in North Carolina and Virginia with about 1,000 units.

The financing comes as part of a 2021 plan that is comprised of fixed-rate bonds and direct bank-held bonds.

HJ Sims aids Clark Lindsey repositioning

Private investment bank HJ Sims announced an $8.8 million taxable note on behalf of life plan community Clark-Lindsey Village in September of this year.

The note is the first step in a long-term repositioning plan for the non-profit which has been around since 1978.

Located in Urbana, IL, Clark-Lindsey Village includes 147 units for independent living, and units dedicated to memory care, assisted living, and skilled nursing.

JLL Capital Markets helps Monarch refinancing

Monarch Senior Living secured $15 million from JLL Capital Markets (NYSE: JLL) to refinance its Monarch Cottages property.

Monarch Cottages is a two-story, Class A luxury memory care community that includes 25 units in La Jolla, California, near San Diego.

The area surrounding Monarch Cottages has a median housing value of nearly $2 million within a one-mile radius with a median household income of more than $200,000.

According to a press release from JLL, more than 6,500 seniors reside in the La Jolla area, a number that is expected to grow by more than 13% over the next five years.

Cedarwood Homes secures LIHTC

The Pittsburgh area will be getting more affordable senior housing thanks to the 9% low-income housing tax credit (LIHTC) awarded to the Cedarwood Homes project from real estate firm Tryko Partners.

Tryko last year went through a competitive bid process to develop the former Fairwood School site in the city’s west end.

In addition to the LIHTC awarded through the Pennsylvania Housing Finance Agency, the project has received a commitment for about $1.6 million in gap financing funding from the Housing Authority of Pittsburgh.

Plans call for 46 total units, 39 of which will be available for residents with incomes up to 60% of the median area income. The project also will feature:

— Covered porches

— Walkable green space

— A community building with health and wellness programming

— Energy efficient, sustainable design, including rain gardens