Senior Living News Wire

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. 

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. 

Berkadia Originates $25.8 Million in Supplemental Loans for Capital Senior Living

Berkadia Commercial Mortgage LLC’s Lenox, Mass. office recently closed on $25.8 million of supplemental financing on a portfolio of loans for affiliates of Capital Senior Living Corporation. 

Christopher Fenton, a vice president at Berkadia, worked with lenders at Fannie Mae and Freddie Mac to secure the financing on 11 properties belonging to two separate portfolios that had been originally financed through Berkadia. Capital Senior Living plans to use the supplemental loans to help fund future acquisitions. 

“This financing represents just some of the great work that we’ve been able to do with Capital Senior Living over the years, and we are grateful for the confidence they show in Berkadia with each transaction,” said Fenton.  “It’s a pleasure to work with a company that excels at providing essential services to seniors and takes pride in the stewardship of their assets.”

Capital Senior Living is headquartered in Dallas, Tex. and is one of the nation’s largest operators of senior living communities, which offer a continuum of care. 

Beech Street Capital Closes $9.9 Million Loan for Pa. Skilled Nursing Facility

Beech Street Capital, LLC announced on Wednesday it has provided a $9.9 million HUD Section 232/223(a)(7) loan to refinance Sterling Healthcare and Rehabilitation Center, a 164-bed skilled nursing facility in Media, Pa. 

Working out of Beech Street’s Chicago office, executive vice president Joshua Rosen originated the transaction. 

The financing structure arranged by Beech Street allows the borrower to take advantage of “tremendous” debt-service savings, says the mortgage banking company. 

 “The package held up wonderfully during HUD processing,” said Rosen. “The Beech Street team was able to issue a commitment quickly, speeding up the entire process for the borrower.” 

Beech Street provided a 31.5-ear term with an attractive interest rate, allowing the borrower to keep the same term and amortization period as the existing loan. Sterling Healthcare and Rehabilitation Center was built in the 1950s but is in very good condition as the owner has invested in the property with updates and upgrades. It is more than 93% occupied. 

Health Care REIT Completes $811 Million Equity Offering

Health Care REIT Inc. (NYSE:HCN) announced on Monday it had completed its secondary offering of 13.8 million common shares at $58.75 each, for a total gross proceeds of about $811 million. The offering including 1.8 million shares sold to underwriters exercising their option to purchase additional shares. 

HCN has previously said it plans to use the net proceeds of the offering to repay advances under its unsecured lines of credit; repay other outstanding indebtedness; and for other general corporate purposes, including investing in healthcare and senior housing properties.

BofA Merrill Lynch, Morgan Stanley, UBS Investment Bank, Barclays, J.P. Morgan, and Wells Fargo Securities acted as joint book-running managers for the offering. 

Cambridge Processes More than $2.02 Billion in Loan Requests in First Half

Cambridge Realty Capital Companies has experienced a 10% rise in senior housing and healthcare mortgage loan origination requests in the first half of 2012 compared to the same period in 2011.

The company has processed 155 loan requests totaling more than $2.02 billion. In June alone, Cambridge processed 31 loan origination requests totaling $368.1 million.

Not every loan request is closed, the company notes, but tracking this data can indicate market trends, and at this time, borrower interest remains strong. 

“With HUD making dramatic improvements in its ability to process loan applications more swiftly, a higher percentage of borrowers have been able to move into popular, low-cost, FHA-insured mortgage loans at bargain rates,” says Cambridge. 

Summer is starting to heat up along with the job opportunities and movement in senior housing. This week’s movers and shakers are a veritable list of jalapenos, hopping and hot.

Interested in a change of scenery? SHN’s job board is chock-full of opportunities for new adventures. For employers, SHN’s senior living jobs (link SLJ to jobs board) board is a bargain…..for less than a dollar a day, you can post a job opportunity that will garner national attention. Post your job today (link today to Job board).

Got some new announcements? Send them our way to movers-shakers@seniorhousingnews.com.

Lancaster Pollard Hires Lacki as Managing Director for Affordable Housing

Lancaster Pollard has announced the hiring of David Lacki as managing director of the firm’s affordable housing group. Lacki will lead a national effort to expand the firm’s investment banking and mortgage banking finance activities for income restricted and subsidized rental properties. He previously served as a director in the Housing Capital Markets Group at RBC.

“We now have national coverage by our health care and senior living groups and are looking to accomplish the same in affordable housing,” said Brian Pollard, Senior Managing Director with the firm. “Our firm’s growth has been largely through our efforts in health care and senior living finance but our affordable housing group, based out of our Columbus, Ohio home office, has been a consistent contributor to our deal flow.”

Assisted Living Concepts Appoints Executive to Lead Health Care Delivery and Regulatory Compliance Programs

Assisted Living Concepts, Inc. (NYSE:ALC) announced Sara Elizabeth Hamm, a 30-year veteran nursing executive with experience as a clinician and educator, has joined the company’s senior leadership team to assume primary responsibility for the delivery of health care and regulatory compliance. Hamm worked at ALC from 2005-2011 as Corporate Vice President of Quality and Clinical Services, has joined the organization as Senior Vice President of Quality Services & Risk Management.

Ms. Hamm earned her Bachelor of Science in Nursing from Marquette University and her Master of Science in Educational Psychology and Community Counseling from UW-Milwaukee.

Omnicare Appoints John L. Workman as Interim CEO

Omnicare, Inc. (NYSE:OCR) announced recently that its Board of Directors has appointed President and CFO John L. Workman as interim CEO. Mr. Workman’s appointment follows the Board’s acceptance of John Figueroa’s resignation as CEO and a director of the Company. Mr. Workman will also maintain his current responsibilities as President and CFO.

Omnicare also has appointed Nitin Sahney, Executive Vice President and President, Specialty Care Division, to the additional position of Chief Operating Officer. Sahney’s appointment is effective immediately. Sahney’s new position will include responsibility for the Long Term Care Division.

ProMatura Expands Team at Oxford location

ProMatura Group, LLC, recently announced an expansion of its Oxford, MS offices.

Bill Gulledge has joined the firm as Senior Market Analyst performing statistical analysis and analyzing economic and demographic data. He is also responsible for survey programming and survey results analysis. Gulledge earned a bachelor’s degree in industrial and systems engineering with a minor in mathematics from Mississippi State University. He has a Master of Business Administration from the University of Mississippi.

Judith Isacoff joins ProMatura as Vice President, Communications overseeing external communications and for the quality of ProMatura’s written products, including reports, articles, proposals, newsletters and collateral materials. She has experience as a reporter, copy desk chief and city editor at various U.S. daily newspapers, and won a Scripps Howard Foundation award for Distinguished Service to the First Amendment. Isacoff has a Bachelor of Journalism degree from the University of Missouri.

Cherry Watkins comes to ProMatura as an Executive Administrator whose responsibilities include collecting economic, demographic and industry data that describe or impact the housing market. Watkins joined ProMatura after retiring from the University of Mississippi, where she worked for 26 years in various departments, including five years in the National Center for Justice and the Rule of Law and 16 years in the Department of Physics and Astronomy. She attended the University of Mississippi, where she studied business.

GE Capital, Healthcare Financial Services Appoints Al Aria as Commercial Leader of its Corporate Finance Team

GE Capital, Healthcare Financial Services has announced the appointment of Al Aria as senior managing director and commercial leader of its corporate finance lending team.

Aria will report directly to Darren Alcus, president and CEO of GE Capital, Healthcare Financial Services. Al will lead a team focused on providing U.S. middle market healthcare companies with critical financing including asset-based and cashflow loans. Aria joined GE Capital, Healthcare Financial Services in 2006 and has held various roles within the commercial organization. Most recently he served as team leader of the healthcare sponsor finance team, providing financing to private equity firms for leveraged transactions including buyouts, acquisitions, growth funding and recapitalizations.

Executive Chairman of ISL Sue Farrow Named Finalist for Ernst & Young Entrepreneur Of The Year 2012

Integral Senior Living (ISL) has announced that Sue Farrow, executive chairman of Integral Senior Living, has been named a finalist in the Ernst & Young Entrepreneur Of The Year 2012 program in San Diego.

Farrow is the Executive Chairman and Owner of Integral Senior Living. She began working at ISL as a single employee in 2002 and has overseen the company grow to management of over 50 communities with over 2,000 employees in ten states. She has been in key leadership positions at senior living companies including Aegis Living, Sunrise Assisted Living and Transamerica Senior Living. Farrow is a Founding Board member and past President of California Assisted Living Association (CALA) and a Board Member of the Assisted Living Federation of America (ALFA). Her education includes a Bachelors Degree in Business Administration from National University and successful completion of the CPA exam.

Berkadia Expands Senior Housing Presence in Colorado

The Denver office of Berkadia Commercial Mortgage LLC recently announced the hiring of Joe Brill as a Senior Vice President with the companyʼs Federal Housing Administration (FHA) division. With more than 20 years of mortgage banking experience, Brill will assist in the origination of FHA-insured loans for both multifamily and seniors housing properties.

Brill, a licensed Mortgage Assistance Program (MAP) underwriter, most recently served as senior vice president at Johnson Capital Huntoon Hastings for five years, working in the FHA and government-sponsored enterprise (GSE) lending group. Prior to his work with Johnson Capital, Brill spent time as an underwriter at Berkadia predecessors GMAC/Capmark, and was Director of Acquisitions at ARC REIT in Denver where he oversaw the acquisition of $1.5 billion in manufactured housing assets. Earlier in his career, Brill worked at General Electric in their Astro-Space division, where he was the lead power systems engineer on the Mars Observer interplanetary spacecraft.

New Senior Vice President of Operations for Aegis Living

Aegis Living has announced the hiring of Michael Grisar, Senior Vice President of Operations. Grisar will have operational responsibility for one of Aegis Living’s three west-coast regions and will lead the operations of the multiple senior living communities in his region, overseeing the communities’ Executive Directors and staff.

Grisar spent nine years with Starwood Hotels & Resorts Worldwide included the role of Director of Six Sigma/Black Belt, overseeing multiple properties in the practices of Six Sigma. Most recently Michael served as Corporate Vice President of Operations for Stations Casinos where he was responsible for the daily hotel operations of 11 hotels in the Las Vegas Valley.

Home Health International, Inc. Announces New CEO

Home Health International, Inc. (PINKSHEETS:HHII) recently announced that it has named Elizabeth Velozo, BSN, MSNH, COS-C as the President and Chief Executive Officer of the Company.
 Velozo is the founder of Integrity Health Advisors, a health care consulting firm specializing in highly complex AHCA, Medicare and Joint Commission surveys.

Previously, she was the founder/CEO of Angeles Visitantes, Inc., a Medicare-certified home health agency in Puerto Rico with a 200 patient census, and Trinity Senior Care, Inc., a Medicare/Medicaid certified and Joint Commission accredited home health agency with a 150 patient census. In addition, she served as the CEO of Mi Farmacia, Inc. a compounding pharmacy and DME company serving the entire island of Puerto Rico, Vieques and Culebras with a range of 600-2000 patient census.

Oak Crest Hires Chris Giesler as New Sales and Marketing Director

Oak Crest, an Erickson Living retirement community in Baltimore, announced the hiring of Chris Giesler as the new Director of Sales and Marketing. In this leadership position, Giesler will be responsible for day-to-day supervision of the community sales operation.

Giesler volunteers his time with Young Life ministries in Baltimore. Prior to joining Oak Crest, he served as Director of Site Development for Site Link Wireless in Columbia. A resident of Cockeysville with his wife and three children, Giesler earned his bachelorʼs degree in business from James Madison University.

Covenant Solutions Adds Senior Vice Presidents

Covenant Solutions, a retirement community planner and developer, recently announced the addition of Steve Anderson and Paul Aigner as senior vice presidents.

Before joining Covenant Solutions, Anderson was senior vice president of Covenant Retirement Communities where he was responsible for all phases of community operations, reconstruction and master planning for 15 communities nationwide. He has a bachelor’s degree from California State University, Los Angeles and a master’s in senior services from Nova Southeastern University, Florida. He has completed several master’s level courses in business administration at Pepperdine School of Business, Malibu, Calif.

Aigner comes to Covenant Solutions from Cogdell Spencer ERDMAN, a national health care real estate investment trust. As president of the northwest region, he managed all client relationships, directed new business development and was responsible for executive oversight. Cogdell Spencer ERDMAN is now part of Lillibridge Healthcare Services Inc. Aigner also owned and operated a project management company for 14 years, helping project owners’ bring their visions to reality. Aigner has a bachelor’s degree in environmental science-architecture from the University of Washington.

Integral Senior Living Announces a New Regional Director of Operations

Integral Senior Living has announced that Mike Zeug has joined the management team as a Regional Director of Operations. In this newly created position, Mike will oversee efforts for a number of ISL communities in California and Nevada. Zeug brings over 13 years of senior living executive management experience to the position.

Prior to joining ISL, Zeug was with Atria Senior Living for seven years, as Regional Vice President, Senior Executive Director and Executive Director for the company. Prior to his time with Atria, he was with Sunrise Senior Living. Zeug has an MBA in Health Care Management from the University of Phoenix and a Bachelor of Science degree from California State University, Northridge.

ELS Announces Promotions for Seavey, Linders

Equity LifeStyle Properties, Inc. (NYSE:ELS) recently announced the appointment of
 Paul Seavey to Senior Vice President of Finance and Treasurer. Seavey has worked for the Company since 1994 serving in various roles within finance and accounting. He will oversee all finance and accounting activity, and he most recently led the effort to raise debt and equity capital associated with the Hometown America transaction.

Additionally, ELS has appointed Martina Linders has been named Vice President of Investor Relations and Financial Planning. Linders has worked for the Company since 1993 serving in various roles, and will now oversee investor relations and will be responsible for budgeting. Furthermore, effective May 10, 2012, Marguerite Nader was appointed President in addition to her current role as Chief Financial Officer reporting to Chief Executive Officer Thomas Heneghan.

Fleegle joins Asbury Communities System as Executive VP of Mission Development

Asbury Communities has appointed Douglas J. Fleegle to the position of Executive Vice President of Mission Development. In addition, Fleegle will serve as President of The Asbury Group, Inc., a consulting arm of Asbury Communities, Inc. The announcement was made by Ed Thomas, President & CEO of Asbury Communities.

Fleegle served 10 years as president and CEO of United Church Homes and Services, a not-for-profit organization which operates, among other interests, three continuing care retirement communities and seven HUD 202 programs. During that period, Fleegle oversaw the establishment of a four-county, Medicare and Medicaid-accredited Program of All-Inclusive Care (PACE) system, which delivers care to seniors in their homes. Prior to that, Fleegle was an executive director of two senior living communities operated by Presbyterian Homes, Inc., and Homewood Retirement Centers, Inc.

Fleegle holds a masterʼs in business administration from St. Francis College in Pennsylvania, earned his bachelorʼs degree in community health from Slippery Rock University, and is a licensed nursing home administrator in North Carolina, Pennsylvania and Virginia.

Lifespace Communities Names New Foundation Director

Ganesh Ganpat has joined Lifespace Communities, Inc. as foundation director. Ganpat’s newly created position will work with each of Lifespaceʼs 12 senior living communities to maximize their charitable effortsGanpat has 23 years of management experience with not-for-profit organizations and 17 years of professional fundraising experience with museums and higher education institutions.

Throughout his career he has focused his efforts on financial management, marketing, fund development, public relations, audience development, employee and volunteer management, and establishing partnerships. Ganpatʼs fundraising experience includes capital campaigns, annual giving programs, major gifts campaigns, special event fundraising and planned giving programs.

Most recently, he served as the executive director of the Des Moines Area Community College Foundation, where he was involved with several capital campaigns, and significantly increased the collegeʼs endowment and scholarship funds. Ganpat began his career with the Science Center of Iowa in museum operations and fundraising.

Love Funding Secures $8.56 Million Construction Loan for Fla. ALF

Love Funding recently closed an $8.56 million loan for the construction and permanent financing of Viera Manor Assisted Living Facility, a new senior living center in Viera, Fla., meant to provide housing for U.S. veterans.

Laura Saull-Smith, a senior director at Love Funding out of its Washington office, secured the loan using HUD’s Section 232 loan insurance program.

Berkadia Arranges $26 Million Financing for Texas Senior Housing Portfolio

Berkadia Commercial Mortgage LLC recently arranged $26.1 million in financing for Capital Senior Living’s four-property portfolio of senior housing communities, located across Texas.

Lisa Lautner, a senior vice president with Berkadia, worked with Fannie Mae to obtain 10-year, fixed-rate financing for Capital Senior Living’s property acquisition. 

The portfolio consists of communities offering independent, assisted, and Alzheimer’s services; they are located in Arlington, College Station, Conroe, and Stephenville, Texas. All four properties were renovated between 2010 and 2011, and have an average occupancy rate of 92%.

Berkadia completed the loan 60 days after the origination, meeting the borrower’s timeframe. 

“We are pleased to once again assist Capital Senior Living with its financing needs as it continues to acquire quality assets and expand its regional presence,” said Lautner. “They are a premier operator in our industry and we are proud to be one of their financial partners.”

Cain Brothers Completes $14.2 Million Bond Refinance for Elder Care Alliance

Long-time Cain Brothers’ client, Elder Care Alliance of Camarillo. Ca., recently closed a $14.2 million loan to refinance its outstanding Series 2000 variable rate demand bonds. Cain Brothers structured the new loan as a conventional taxable loan insured through FHA’s Section 232/223(f) program, used to refinance debt of licensed levels of senior care facilities, including assisted living, memory care, and skilled nursing. 

Elder Care Alliance of Camarillo operates 60 assisted living apartments and 18 memory care units that were built using tax-exempt, variable rate bonds, supported by a bank letter of credit with further support for a third-party guarantor. Even with this guarantor, says Cain Brothers, the operator had to periodically revisit the bank letter of credit’s renewal, and the situation became “even more severe” in the past two years thanks to the global debt crisis.

The refinancing loan allows Elder Care Alliance of Camarillo’s debt structure to lock in at a fixed, all-time low rate of 3.00% for 35 years.

Cambridge Realty Capital Arranges $11.3 Million of Financing for Chicago SNF

Cambridge Realty Capital Companies recently closed on a $11.3 million HUD Lean loan to refinance Columbus Park Nursing and Rehabilitation Center, a 216-bed skilled nursing home located in Chicago, Ill.

The fully-amortized, 30-year term loan was arranged for the property’s owner, an Illinois limited liability company, said Cambridge Chairman Jeffrey Davis. The loan was underwritten by Cambridge Realty Capital Ltd. of Illinois; its interest rate was not disclosed. 

KeyBank Provides $15.7 Million to Refinance REIT Acquisition Portfolio

KeyBank Real Estate Capital recently closed on a $15.7 million, 10-year fixed-rate Freddie Mac loan to Care Investment Trust, a healthcare real estate investment trust based in New York, to repay an interim bridge loan used to acquired three Virginia assisted living communities.

The transaction allowed Care Investment Trust to refinance the loan and lock in an attractive interest rate for a 10-year term for the following communities, all of which are operated by Greenfield Senior Living through a triple-net lease:

• Greenfield of Berryville, a 48-unit assisted living community located in Berryville, Va.
• Greenfield of Fredericksburg, a 26-unit assisted living community located in Fredericksburg, Va.
• Greenfield of Stafford, a 44-unit assisted living community located in Stafford, Va.

Beech Street Capital Closes $4.3 Million Refinance for Ill. SNF

Beech Street Capital, LLC recently provided a $4.3 million loan to refinance an Illinois skilled nursing facility using HUD’s Section 232/223(f) program.

Joshua Rosen, executive vice president of Beech Street Capital, worked on the transaction out of the firm’s Chicago office.

“This deal highlighted the tremendous strength of our underwriting team – our submission package held up wonderfully to HUD’s review during processing, and it was only a matter of days before our loan received approval,” said Rosen.  “The new debt service payments will have an immediate positive effect on the facility’s bottom line, something that is especially important here in Illinois, where the state is currently several months behind in its payments.” 

Evanston Nursing & Rehabilitation Center is a 57-bed facility located in Evanston, Ill.

RED CAPITAL Closes $125.8 Million of Seniors Housing Loans in March

RED CAPITAL GROUP, LLC’s Seniors Housing Group completed 15 seniors housing transactions for a total of more than $125.8 million in closed loan proceeds in the month of March. Loan types ranged from Ginnie Mae/FHA new construction, refinances, and acquisition/refinances, to Fannie Mae MBS/DUS refinances provided by mortgage banking arm Red Mortgage Capital, LLC and Red Interim loan financing by principal lending arm Red Capital Partners, LLC.

Five Star Quality Care Enters $150 Million Credit Facility

Five Star Quality Care, Inc. (NYSE:FVE) recently entered into a new $150 million secured revolving credit facility. This comes in addition to the senior living owner/operator’s existing $35 million secured revolving credit facility that has a maturity date of March 18, 2013 with the option of extending the facility up to April 13, 2017.

Drawings under the new credit facility will bear interest at LIBOR plus a spread of 250 basis points. The facility is secured by 15 senior living communities owned by Five Star that have a total assessed value of approximately $230 million. The owner/operator also owns an additional 12 senior living communities unencumbered by debt.

Citigroup and RBC Capital Markets were the joint lead arrangers and bookrunners for the new facility, with participating banks including administrative agent Citibank, N.A.; syndication agent Royal Bank of Canada; co-documentation agents CIT Bank, Compass Bank, PNC Bank: National Association, and The Huntington National Bank; and lenders Comerica Bank, RBS Citizens, N.A., and UBS Loan Finance LLC.

Housing Investment Trust Provides $6.6 Million for Low-Income Senior Housing Projects

The AFL-CIO Housing Investment Trust is providing $6.6 million in financing for two existing low-income senior housing projects in Shrewsbury, Missouri, according to the St. Louis Business Journal.

The money will go toward renovation the St. Joseph and Holy Infant apartments in Shrewsbury, and will also allow the properties to refinance their existing debt.

The investment trust says that the investment of union pension capital in the combined $13 million projects will provide the two properties with capital to continue operations for another 20 years. St. Joseph and Holy Infant provide a combined 157 units of housing for low-income seniors. The rehab work that HIT is financing will convert most of the existing efficiency apartments into one-bedroom units and will also go toward renovating kitchens and bathrooms to make them more accessible, and expanding community spaces.

Cardinal Ritter Senior Services own and manage both properties.

Berkadia Originates $46 Million for Two LeisureCare Senior Housing Properties

Berkadia Commercial Mortgage LLC recently closed a $46.4 million loan for two LeisureCare-operated seniors housing properties in Portland, Ore.

Russellville Park East and West are two senior housing properties located next to each other and operated as one combined campus. The East property was built in 2004 and has 154 independent living units. By 2008, the property was stabilized at 99% occupancy, at which point construction began on the West property, located on an adjacent parcel of land. Russellville West opened in 2009 and has 27 independent living, 95 assisted living, and 16 memory care units.

The Russellville community also features three restaurants, a bar, a coffee shop, a salon, a spa, and a gym.

The loan, originated by Berkadia’s Heidi Brunet, vice president in the company’s Senior Housing Group, was funded through Berkadia’s bridge loan program along with BBVA Compass and was used to refinance existing mortgages on these two properties.

Cambridge Realty Capital Arranges $13.3 Million Refinance for Nevada SNF/ALF

Cambridge Realty Capital Companies recently closed a $13.3 million refinancing using HUD’s Lean program for Highland Manor of Elko, a senior care facility located in Elko, Nevada.

The 147-bed skilled nursing and assisted living facility was able to refinance to a fully-amortized, 35-year term mortgage using HUD’s Section 232/223(f) program. Cambridge Realty Capital Ltd. of Illinois underwrote the transaction for the facility’s owner, a Nevada limited liability company. The loan’s interest rate was not disclosed. 

Love Funding Closes $5.02 Million Refinancing for Ohio SNF

Love Funding recently announced the closing of a $5.02 million loan refinancing for a Minster, Ohio senior care facility. Heritage Manor Skilled Nursing and Rehabilitation Center, built in 1977, is operated by a subsidiary of Vrable Healthcare Inc. and has 109 beds in 61 units.

Robert Smallwood, a senior director in Love Funding’s Cleveland office, secured the loan through HUD’s Section 232/223(f) program, and was able to lock in a low fixed interest rate over a 33-year term. This will generate approximately $215,000 of additional cash flow each year, plus $215,000 for repairs and replacement reserves. 

Last September, Smallwood secured financing for two loans for a total of $12.3 million to help Vrable, based in Columbus, Ohio, to acquire two in-state skilled nursing facilities. 

Berkadia Originates $13 Million in Refinancing for San Antonio Nursing Facility

Berkadia Commercial Mortgage LLC announced on Jan. 3 that it had originated $12,958,000 in permanent refinancing through its Department of Housing and Urban Development/Federal Housing Administration program for a nursing facility located in San Antonio, Texas.

Stone Oak Care Center, a 152-bed facility built in 2002, features updated amenities such as rehabilitation areas and a private dining area. It is close by to several major healthcare facilities, including North Central Baptist Hospital and Methodist Stone Oak Hospital.

“The Stone Oak Care Center is a best-in-class nursing facility that also benefits from being centrally located near several major hospitals and health care facilities,” said Steve Mentesana, the senior vice president of Berkadia’s Plano branch who originated the refi. “With such strong fundamentals to go along with our solid underwriting, Berkadia was able to smoothly close this loan within 30 days of HUD Commitment.”

The 35-year loan features a 78% LTV with a fixed interest rate of 3.88%, and closed on Nov. 29, 2011 following the completion of a previous bridge loan through Berkadia predecessor Capmark.

Oxford Finance Provides $15 Million in Debt Financing to Healthcare Provider

Oxford Finance LLC, a finance firm that provides senior debt to life sciences and healthcare services companies, announced on Jan. 17 that it closed a $15 million senior secured credit facility to a private equity-backed healthcare services company, which plans to use the funds for the recapitalizations of its business.

“Oxford welcomes the opportunity to foster the growth of an outsourced hospital services provider that is backed by a strong equity sponsor,” said Christopher Herr, managing director for Oxford Finance, in a statement. “The company is well-managed and offers a service that enables hospitals to contain costs while improving patient care.

Lancaster Pollard Facilitates a $4.7 Million Refinance for Iowa Skilled Nursing Facility

Lancaster Pollard recently announced its role in obtaining $4.7 million in refinancing for an Iowa skilled nursing facility. The 69-bed Oskaloosa Care Center wanted to take advantage of current low interest rates, and Lancaster Pollard’s Quintin Harris recommended the FHA’s Section 232/223(f) program.

It took just five business days to get an FHA commitment for the facility, much quicker than average processing times, thanks to low leverage on the project and the thoroughness of the underwriting. This quick turnaround helped minimize the interest rate risk associated with the project, says Lancaster Pollard, and the care center successfully obtained a low interest rate refinance with a 35-year term.

“This was a smooth transaction due to the high quality of the operator and the low leverage on the project, which made HUD comfortable,” said Harris. “Also, our underwriting team did a great job updating information so there were no holes in the package when the project came out of the queue, resulting in the remarkably fast closing.”

Oxford Finance Provides $8.5 Million in Senior Debt Financing to Benchmark Healthcare

Oxford Finance LLC announced on Jan. 26 that it had provided $8.5 million in senior debt to affiliates of Benchmark Healthcare, in a financing package that included a $7.5 million senior secured term loan and a $1 million revolving line of credit.

Benchmark will use the proceeds from the term loan to refinance existing debt and fund capital improvements at its skilled nursing facilities, while the revolving line of creit will be used for working capital.

“Oxford is pleased to provide financial support to Benchmark,” said Christopher A. Herr, managing director to Oxford, in a statement. “The company has an experienced management team with a longstanding reputation for providing quality skilled nursing services in the Midwest and Southeast.”

Creative Health Capital served as Benchmark’s financial advisor.