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Category: Berkadia

SQLC Completes $119 Million Financing for Ind. CCRC

Senior Quality Lifestyles Corporation and its affiliate Mayflower Communities, working in partnership with St. Vincent Health, announced last week they had completed financing for The Barrington of Carmel, a 501(c)3 nonprofit continuing care retirement community (CCRC). 

Financing was completed through the sale of $119,020,000 in Series 2012 revenue bonds, with B.C. Ziegler and Company serving as bond underwriter for the transaction. Proceeds of the tax-exempt bonds will be used to pay for certain costs of acquiring, constructing, developing, and equipping the Barrington; fund a debt service reserve fund; pay interest for a period of approximately 20 months; and pay certain costs relating to the issuance of the bonds.

“We are pleased to complete the successful financing of The Barrington and excited to have construction of the new community already underway,” said Brewer. 

Prudential Provides $42.3 Million Loan for Calif. Assisted Living Community

Prudential Huntoon Paige, the FHA-insured lending business of Prudential Mortgage Capital Company, the commercial mortgage lending business of Prudential Financial, Inc. (NYSE:PRU), recently announced that it closed a $42.3 million blended rate loan to both refinance and construct a new addition on Palo Alto Commons in Palo Alto, Calif.

The loan for the 117-unit assisted living community was closed with a 457-month fully-amortizing term and a fixed interest rate of 3.28%. The loan refinances an existing FHA-insured loan and also finances the construction of an additional 44 assisted living units. 

Upon completion, the development will be a 161-unit, 185-bed facility licensed for an additional 90 beds in a new wing. 

The existing building will not be structurally affected by the new addition; rather, the new construction will be connected via walkways to the existing structure and remain a standalone building. 

“The growing demand for high quality senior housing in this region along with the ongoing success of this property makes Palo Alto Commons an attractive transaction for Prudential Mortgage Capital Company,” said Martin Herz, a principal with Prudential Huntoon Paige. “We are pleased to have been able to provide the borrower with the unique blended rate financing needed to make this project a reality.”

Ziegler Closes $150 Million Financing for Covenant Retirement Communities

Specialty investment bank Ziegler recently closed a $150,170,000 Series 2012 financing for Covenant Retirement Communities, a multi-site system with 12 continuing care retirement communities located across eight states.

Proceeds of the Series 2012 Bonds will be used to refund, on a current basis, seven series of outstanding bonds (1998-Ill., 1999-Minn., 2001-Ill., 2011A&B-Ill., 2002A&B-Colo.); provide approximately $20 million for general campus improvements throughout the system,; fund a debt service reserve fund; and pay the costs of issuance. 

The bonds have been rating BBB+ for FitchRatings and BBB= from Standard & Poors. 

“This financing completes CRC’s refundings and debt restructurings initiated in 2011,” said Don Carlson, senior managing director and vice chairman at Ziegler. “These 2012 Bonds will improve the System’s cash flow from taking advantage of record low interest rates and reimburse themselves from prior capital expenditures with new money. This transaction completes the restructuring of their aggregate debt that was begun in 2011, providing CRC with a very conservative capital structure.”

Love Funding Secures $5.14 Million Refinancing for Calif. Memory Care Community

Love Funding recently announced the closing of a $5.14 million loan refinancing for Autumn Years at Newport Mesa, a 40-bed memory care community in Costa Mesa, Calif. 

Artin Anvar, a director out of Love Funding’s Washington office, obtained the financing through the Department of Housing and Urban Development’s Section 232/223(a)(7) LEAN loan program, enabling the borrower to reduce the interest rate and extend the loan term by five years, which saved approximately $135,000 in annual debt service costs.

Autumn Years was built in 1999 and specializes in memory care services delivered in a “home-like” environment. 

Berkadia Originates $35 Million Loan for Two Senior Housing Properties

Berkadia Commercial Mortgage recently originated a total of $34.9 million in loans for two senior housing properties, one located in Virginia and the other in Ohio. 

Heidi Brunet, a vice president and member of Berkadia’s Senior Housing Group, worked with borrower Smith/Packett to originate $25 million in financing for The Crossing at Falls Run, a 173-unit senior housing community in Fredericksburg, Va. The loan has an 18-month term with a floating interest rate an was made through the Berkadia-BBVA Compass Joint Bridge Loan program in order to refinance an existing construction loan. 

The Crossing at Falls Run is located on 22.7 acres and has 115 independent living units, 42 assisted living units, 16 memory care units, and is approximately 60% occupied. Smith/Packett developed and built the property, which opened in November 2011.

Berkadia also originated a $9.9 million financing through Fannie May for a senior living community in Pickerington, Ohio. The loan has a 20-year, fixed-rate term and was used to refinance an existing mortgage on Amber Park Assisted Living, an 86-unit community that is currently 100% occupied. 

Lisa Lautner, a senior vice president who is also part of Berkadia’s Senior Housing Group, worked alongside Brunet with borrower Hawthorne Retirement Group to originate the loan, which has a 65% loan-to-value ratio and 20-year amortization. 

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Berkadia Arranges $40 Million Financing for Va. Senior Housing Property

Berkadia Commercial Mortgage LLC recently originated $39.7 million in financing through Fannie Mae for a senior living community located in Richmond, Va. 

Heidi Brunet, vice president at Berkadia, worked with the borrower, Smith/Packett, to secure a 10-year, fixed-rate financing with features including a 70% loan-to-value ratio and 30-year amortization.

Smith/Packett is using the loan to refinance an existing mortgage on The Crossings at Bon Air, which it developed in 2009 as part of a joint venture with CJSP Healthcare Holdings. The property is located on a 17.6 acre campus and has 108 independent living units, 59 assisted living units, and 28 memory care units, all of which are more than 90% occupied. 

“It is always a pleasure to work with Smith/Packett, as they are one of the premier senior housing and healthcare companies in the country,” said Brunet. “With occupancy rates increasing across the seniors housing market and more growth expected, we anticipate the need for financing on these types of properties to continue.”  

Back in March, Brunet worked with Smith/Packett to originate $35 million in financing to acquire the property with a loan made through the Berkadia-BBVA Compass Joint Bridge Loan program. 

Prudential Mortgage Capital Closes $10.9 Million financing for N.J. Senior Property

Prudential Mortgage Capital Company recently closed a $10.9 million Fannie Mae loan for Arlington House Senior Residences, a project-based Section 8 housing property located in East Orange, N.J. 

Rose Investments, of Jonathan Rose Companies, acquired the property using financing originated and underwritten by Prudential Mortgage Capital’s affordable housing team, which provides financing through the Fannie Mae DUS, Freddie Mac Seller/Servicer and FHA MAP lending programs.

The loan term is for eight years and will amortize on a 30-year schedule. Evan Williams, a director with Prudential Mortgage Capital Company, was the lead on the transaction. 

Love Funding Closes $26 Million Loan for Colo. Senior Community

Love Funding recently closed a $26 million loan refinancing for Concordia on the Lake, a market-rate, age-restricted apartment community in Littleton, Colo.

Leonard Lucas, a senior director out of the financing firm’s Boston office, secured the loan through the Department of Housing and Urban Development’s Section 232/223(f) loan insurance program. The borrower was able to lock in a low, fixed interest rate over a 35-year term and fund the replacement reserve. 

The refinanced property is comprised of two adjacent senior apartment communities, Concordia on the Lake and The Cottages at Concordia. Concordia on the Lake was built in 2001 with financing secured through HUD’s Section 221(d)(4) loan insurance program. Cottages on the Lake was built in 2008 and has 10 one-story duplex and triplex buildings. 

All together, the property has 217 units offered at market-rate rents. 

Love Funding Closes $3.82 Million Refinancing for Wash. Assisted Living Community

Love Funding also recently announced the closing of a $3.82 million loan refinancing for Fred Lind Manor, an 82-bed assisted living community in Seattle, Wash.

Joshua Hausfeld and Artin Anvar, directors out of the firm’s Washington office, secured the financing through HUD’s Section 232/223(a)(7) loan program. The property’s owner was able to lock in a low, fixed interest rate and extend the loan term by 12 years, producing more than $122,000 in annual debt service savings.

The mortgagor for Fred Lind Manor is Fairview Ministries NorthWest, a nonprofit corporation. 

Love Funding Secures $8.03 Million Loan for Va. Assisted Living Community

Love Funding recently announced the closing of an $8.03 million loan refinancing for Commonwealth Assisted Living at Kilmarnock, an assisted living community in Kilmarnock, Va. Joshua Hausfeld, a director at the financing firm, secured the loan through HUD’s Section 232/223(f) program. The property’s owner was able to lock in a low, fixed interest rate for a 35-year term, generating “significant” debt service savings.

Commonwealth Assisted Living was built in 1998 with an addition built in 2004. A dining room was added in 2009, and one of the community’s wings was converted to memory care use. The property currently has 71 operating beds in 59 units, with 18 beds dedicated to memory care. 

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