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Category: Cain Brothers

Contemporary Healthcare Capital Provides Acquisition Financing

Contemporary Healthcare Capital, LLC has provided a $6,850,000 senior mortgage loan, a $1,250,000 mezzanine loan, and a $800,000 preferred equity loan to finance the acquisition of a 120 bed licensed assisted living and memory care facility located in Sumter, S.C.

The funds will also be used for the renovation of the facility, working capital and closing costs.

Johnson Capital Arranges $5M Loan for Senior Care Center

Johnson Capital has arranged a $5 millii loan to refinance Copper Ridge Health and Rehabilitation Center, a 101-bed skilled nursing facility in Butte, Montana. 

The 35-year fully amortizing loan was arranged using the HUD Section 232/223(f) LEAN program and carries a low interest rate. Brett Patric, managing director of Johnson Capital’s FHA Division, led the transaction. 

Grandbridge Finances $28M Senior Housing Development in Minn.

Grandbridge Real Estate Capital recently closed a $27,820,000 first mortgage construction/permanent loan secured by The Waters on Mayowood, a senior living community anticipated to open in late 2014 in Rochester, Minn.

The development loan, originated by Minneapolis-based Tony Carlson, was funded through one of Grandbridge’s banking relationships and featured a construction term, interest only component, permanent term, and closed with a very low interest rate.

Located near the world-renowned Mayo Clinic and adjacent to the Apache Mall, the 175-unit community is being developed by a local Rochester developer and will be operated and managed by The Waters Senior Living, an owner and operator of senior living communities in the Twin Cities.

Cain Brothers Advises Issuance of $50M PRS Refinancing

Cain Brothers served as investment banking advisor in connection with the issuance of $50 million Revenue Refunding Bonds, Series 2013B for Rogue Valley Manor, a Pacific Retirement Community-managed CCRC located in Medford, Oregon. 

The financing strategy consisted of a direct purchase with a commercial banking entity to refinance RVM’s Series 2007 variable rate demand bonds supported by a direct-pay letter of credit and reimburse RVM for a portion of prior capital expenditures. PRS worked with the purchaser in securing a 10-year capital commitment.

While the Series 2013B Bonds do not carry a rating, a public rating on RVM’s operations was solicited from Fitch Ratings. Cain Brothers assisted RVM throughout the rating review process, and Fitch affirmed the existing rating of “A-” with a Stable Outlook. The 10-year commitment resulted in a low cost of capital based on interest rates as of the date of transaction closing, exclusive of RVM’s corresponding interest rate swap.

Berkeley Point Capital Closes $6.1M Senior Care Refinancing 

Berkeley Point recently closed the refinancing of Willow Springs Alzheimer’s Special Care Center, a 30-unit, 56-bed community in Redding, Calif. The cash-out refinancing was arranged through the Fannie Mae DUS program and structured as a fixed-rate loan with a 10-year term.

Willow Springs opened in 2003 and is the only standalone memory care community in the local market. The borrower is Churn Creek LP, led by Jerry Erwin, who has developed, owned, and managed nursing homes and other senior living care centers for more than 40 years. JEA Senior Living, Inc., founded by Erwin, operates Willow Springs.

Prudential Mortgage Capital Provides $64M Loan for Spectrum Retirement

Prudential Mortgage Capital Company recently announced providing a $64.2 million loan to refinance two Spectrum Retirement Communities properties in Colorado.

Both senior housing properties were built in 2009 and are located in Lakewood and Parker. The Lakewood property is an independent living community, while the Parker property specializes in independent living, assisted living, and memory care. 

The loan term is seven years and was originated and underwritten by Prudential Mortgage Capital’s senior housing team. Casey Moore, a principal at Prudential Mortgage, and Trace Wilson, an associate, led the transaction. 

Beech Street Capital Closes $8 Million Loan for Conn. SNF

Beech Street Capital announced recently it has provided a $7.9 million loan to refinance Laurel Woods Health Care Center, a 120-bed skilled nursing facility in East Haven, Conn.

The borrower had 21 years left on an existing $9 million FHA loan, and Beech Street was able to secure an increase in the loan term to 33 years, which produced a decrease in annual payments of more than $270,000 with a significant reduction in interest. HUD’s Section 232/223(a)(7) program was used for the transaction. 

Ziegler Closes $30M Financing for Calif. Senior Living Community

Ziegler recently announced the closing of a $29.97 million tax-exempt, Cal-Mortgage insured fixed-rate Series 2013 Bonds for The Redwoods, a Community of Seniors.

The Redwoods operates a retirement community that offers independent living, assisted living, and skilled nursing in Mill Valley, Calif. and has a key mission of providing affordable housing. 

The community began planning for a revitalization project in 2006 to respond to the challenges of an aging physical plant and  expand affordable housing options for the area’s growing senior population. The revitalization plan focuses on updating the 40-year old community’s infrastructure, including renovating apartments and adding a wellness center, café, and a new entrance.

The Series 2013 Bonds are being issued to currently refund the Series 1997 Bonds, with $2,965,000 outstanding; establish a debt service reserve fund; fund a small portion of interest; and pay costs of issuance for the Series 2013 Bonds and the refunding of the prior bonds. 

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Capital One Bank Announces $115 Million in Financial Transactions

Capital One Bank recently announced it acted as a joint bookrunner for an $85 million, seven-year senior secured term loan to subsidiaries of Parkwood Properties, Inc. and a $30 million revolver loan to Palm Garden Healthcare Holdings, LLC. Parkwood Properties will use the term loan to refinance existing debt and to finance upgrades and renovations to long term care facilities collectively owned by Florida Convalescent Centers, Inc. and Springdale Health Centers, LLC. Palm Garden and its subsidiaries will use the revolver to fund ongoing working capital requirements of the skilled nursing and assisted living facilities they now operate through the transaction closing.

Florida Convalescent Centers, Inc. and Springdale Health Centers, LLC collectively own 14 skilled nursing facilities (SNFs) and one assisted living facility in Florida, with a total of 1,921 licensed and available beds. Florida Convalescent Centers and Palm Garden also will expand their banking relationship with Capital One Bank to include deposit and treasury management services.

NHI Prices Offering, Aims at Net Proceeds of $245M

National Health Investors, Inc. (NYSE:NHI) announced the pricing of its underwritten public offering of 4.5 million shares of its common stock at $57.00 per share for net proceeds of approximately $245.3 million after related expenses. Underwriters have also been granted a 30-day option to purchase up to an additional 675,000 shares. 

NHI plans to use the net proceeds from the offering to fund a portion of the purchase price of its pending acquisition of 25 independent living communities from an affiliate of Holiday Retirement for $491 million. If the pending acquisition is not completed, the REIT will use the proceeds for general corporate purposes, including other possible future acquisitions.

Wells Fargo Securities, BofA Merrill Lynch and BMO Capital Markets acted as joint book-running managers and KeyBanc Capital Markets, Stifel, JMP Securities, BB&T Capital Markets, Credit Agricole CIB, Raymond James, RBS Securities Inc. and SMBC Nikko acted as co-managers for the offering.

Newcastle Closes Common Stock Offering, Raises $304M

Newcastle Investment Corp. (NYSE:NCT) announced on Nov. 22 the sale of 57,950,952 shares of its common stock, with gross proceeds of approximately $304.2 million.

Newcastle intends to use the net proceeds from the offering to fund a portion of the purchase price for a portfolio of senior housing properties the company has agreed to acquire from Holiday Retirement affiliates for about $1 billion.

Ziegler Closes $50 Million Ohio Presbyterian Retirement Services Financing

Ziegler, a specialty investment bank, has successfully closed the $50.6 million fixed-rate Series 2013A Bond issue for Ohio Presbyterian Retirement Services, an Ohio 501(c)(3) corporation founded in 1922. OPRS, headquartered in Columbus , owns and operates 11 communities throughout the state of Ohio.

Nine of the 11 campuses are full-service continuing care retirement communities. The organization also offers home and community based services through its senior independence practice that assists more than 85,000 adults.

The $50,550,000 Series 2013A Bonds were issued in concurrence with the 2013B Bonds, which total $25 million resulting in an aggregate amount of $75.6 million for OPRS’ 2013 financing. The 2013A and 2013B Bonds are being issued to retire a loan from PNC in the outstanding principal amount of $11 million; pay or reimburse OPRS for the payment of certain costs of acquiring, constructing, installing and equipping various capital expenditures; establish a debt service reserve fund for the Series 2013A Bonds; and pay cost of issuance for the Series 2013A and 2013B Bonds.

“The bond markets have been challenging for several months and Ziegler had been anticipating these challenges continuing through Thanksgiving and December. We were able to successfully price OPRS’ 2013A Bonds in advance of heightened year-end bond supply and we were able to add a slice of attractively priced bank capital with the 2013Bs to allow for a great overall financing for our client,” said Tom Meyers, managing director in Ziegler’s senior living practice. “OPRS will use this capital to pursue several meaningful new money projects at its Westminster Thurber, Rockynol and Breckenridge Village campuses to further support its mission of serving Ohio’s seniors.”

Cambridge Arranges $13.5 Million in Loans for 3 Calif. ALFs

Cambridge Realty Capital Companies has arranged $13.5 million in loans to refinance three assisted living facilities owned by a California limited liability company.

The fully amortized loans were arranged for the owner using the HUD Section 232/223(f) program and were underwritten by Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-insured HUD loans.

Coordinating the transaction for the company was Hymie Barber, National Originations Manager and Managing Director of Catalyst/Cambridge Healthcare Finance in Los Angeles, the company’s West Coast affiliate.

The facilities included in the transaction are Glen Park West Retirement Community, a 98-bed assisted living facility in Glendale, Calif., with a $5.2 million loan; Glen Park East Retirement Community, a 97-bed assisted living and memory care facility also in Glendale with a $4.4 million loan; and Laurel Canyon Retirement Community, a 68-bed assisted living facility in North Hollywood, Calif. with a $3.9 million loan. 

Lancaster Pollard Arranges Senior Living Transactions in 5 States

Samaritan Village

Lancaster Pollard recently helped Samaritan Village refinance $23.3 million to convert a portion of their independent living units into assisted living units to meet resident demand. Samaritan Village is a long-term care community located in Hughson, Calif. and operated by Hughson Samaritan Village.

Lancaster Pollard worked with HUD to appraise the facility at levels above historical performance. In addition, the firm negotiated a discounted payoff with existing bond holders and obtained a letter of credit with a local bank that covered the debt service reserve cash requirement. The $23.3 million loan is insured by the FHA Sec. 232/223(f) program and will allow Samaritan to rid itself of the onerous covenants imposed by the old indebtedness and benefit from approximately $560,000 in annual debt service savings. In addition, the refinance will fund $580,000 in repairs, the majority of which facilitated the unit conversion. 

Park Place Senior Living

Lancaster Pollard recently assisted Leo Brown Group, LLC, with the refinance of Park Place Senior Living, a long-term care community located in Fort Wayne, Ind. The firm financed the original construction of Park Place in 2009 using the FHA Sec. 232 program. Due to the drop in interest rates since 2009, ownership sought to refinance its existing HUD debt to lower its interest rate and achieve debt service savings.

The firm was able to structure a $14.2 million loan insured by the FHA Sec. 232/223(a)(7) program with a competitive fixed interest rate that will provide significant debt service savings for the borrower. 

Claremont Care Center 

Lancaster Pollard recently refinanced a 118-bed skilled nursing facility, Claremont Care Center of Point Pleasant. N.J., for Hoosier Care, Inc., an Indiana nonprofit organization. The firm recommended using the FHA Sec. 232/223(a)(7) program and was able to reduce the interest rate on the property’s existing FHA-insured mortgage by nearly 1.5 percentage points, resulting in combined annual savings of more than $94,715 for the owner. In addition, the firm was able to extend the maturity to 30 years. 

Parkhaven Retirement and Assisted Living Community

Lancaster Pollard was engaged to assist in financing the acquisition of Parkhaven Retirement and Assisted Living Community by Parkhaven Investors, LLC, the operator/minority partner along with other local investors. Parkhaven, located in Manhattan, Mont., offers eight units of independent living and 36 units of licensed assisted living to residents of this bedroom community of Bozeman.

The firm recommended using the HUD Sec. 232/223(f) program for its low fixed-rate, higher loan-to-value and non-recourse features. The new long-term debt structure eliminated the new owners’ personal guarantees as well as funded over $400,000 in replacement reserves from the mortgage’s proceeds.

Resthave Home of Whitesound County

Lancaster Pollard assisted Resthave Home of Whiteside County, located in Morrison, Ill., with financing a $14.2 million expansion and renovation. The firm advised on the structuring of the financing, which combined USDA funds for permanent funding and a construction loan for a portion of the construction funding. It also underwrote $7 million of tax-exempt, bank-qualified, investment-grade-rated bond anticipation notes (BANs) for a two-year term, which were used to partially fund construction.

Resthave Home was able to fund its expansion and renovation with a blended interest rate of 3.30% for construction financing and 4.43% for permanent financing. The cost of capital includes a mix of 60% fixed rate and 40% variable rate capital. The term and amortization of the loan is 40 years. The larger, updated facility will feature additional parking, a large chapel and an open-air courtyard. Steve

Cain Brothers Reworks Front Porch Communities’ Capital Structure

Cain Brothers worked closely with Front Porch Communities and Services Senior Management to create and execute a strategic re-engineering of the FPCS’s capital structure.

The first phase of the plan came to fruition in July 2013 with the closing of two new loans that funded the August 2013 refinancing of $50 million of existing tax-exempt Series 1999 Certificates of Participation with a fixed interest rate of 5.375% and final maturity of 2030. The two new loans are FHA-insured taxable loans at fixed interest rates of 2.73% and 2.80% and have final maturities of 2039 and 2045. They are secured by first deeds of trust on the refinanced properties.

The second phase of the plan came to fruition in September 2013 with the closing of a third loan that funded the redemption of an additional $29.9 million of existing tax-exempt Series 1999 Certificates of Participation. The third FHA-insured taxable loan has an interest rate of 3.74% and is secured by a deed of trust on the refinanced property.

The three new loans will reduce the annual debt service on the refinanced debt by 32% and will reduce overall annual debt service for FPCS by 13%. In addition to funding the partial prepayment of Series 1999 Certificates of Participation, the three loans include funding of approximately $5 million capital expenditures and the costs of issuance for the transactions at these very favorable rates. In addition to the economic benefit of reducing overall debt service of FPCS by $2.3 million annually, this transaction also improves the financial ratios of the Obligated Group by reducing its debt by $79.7 million and annual debt service by $7.2 million. 

FPCS owns and operates 10 multi-level retirement communities in California, including five rental and five entrance fee communities, and manages 25 affordable housing communities as well as three market rate retirement communities. The rental properties were refinanced through the FHA Section 232/223(f) program. 

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Housing & Healthcare Finance Closes $160 Million of Loans

Housing & Healthcare Finance has closed $159,414,800 worth of HUD loans in the past two months in 12 transactions across six states. Eleven of the loans were for skilled nursing facilities, located in Missouri, Illinois, New York, Ohio, New Jersey, and Florida, while the twelfth transaction was a HUD new construction loan for an assisted living community in New York. The average interest rate on all the transactions was in the mid-3s. 

The loans range in size from a $6.6 million skilled nursing facility loan in Ohio to a $30.8 million loan for a New York skilled nursing facility.

The $29 million new construction loan in New York is noteworthy as it will be the only assisted living community in Scarsdale. The planned facility went through years of negotiations with the various municipal entities involved, says HHCF’s director of business development Charles Dabich, along with conservation easements that had to be resolved. Construction has begun on the project, which will have 138 beds in 115 units. 

Town and Country Manor Closes $7.7 Million Bonds

Cain Brothers served as placement agent for the $7.7 million Town and Country Manor Series 2013 Tax-exempt Bonds that were structured as a direct bank purchase. Town and Country Manor, a nonprofit CCRC in Santa Ana, Calif., used the proceeds of the direct purchase to refinance its existing Series 1990 variable rate demand bonds that were backed by an expiring letter of credit.

The transaction involved a tender and redemption of $8.7 million Series 1990 Bonds, as well as the release of the Series 1990 debt service reserve fund to fund the reduction in the outstanding debt and a new debt service reserve fund and the issuance of Series 2013 Bonds. Cain Brothers worked with Town and Country Manor to secure release of the previous trustee-held debt service reserve fund, establishment of new non-trustee held debt service reserve fund, and favorable five-year principal amortization.

The Series 2013 Bonds have a final maturity of 2038 compared to the 2020 final maturity of the Series 1990 Bonds, and the underlying documents reflect current market terms and conditions, which allow the interest rate and principal to be reset in future years without reissuance of the Series 2013 Bonds. The new capital structure enables Town and Country Manor to maintain its variable rate capital structure, which is currently resulting in an annualized cost of capital of less than 2%.

Ziegler Closes $35.8 Million Financing for Magnolia Manor

Ziegler recently announced the closing of the Series 2013A $35,840,000 tax-exempt, non-rated, fixed-rate Bonds for Magnolia Manor Obligated Group. Magnolia Manor, Inc. is a Georgia not-for-profit which is affiliated with the South Georgia Conference of the United Methodist Church.

The Obligated Group for the Series 2013A Bonds consists of the Corporation and Magnolia Manor of Columbus, Inc. The Bond proceeds together with other sources of funds will be used to refund the outstanding Series 1999 Bonds and two corporate loans. The Series 2013A Bonds are tax-exempt, non-rated, fixed-rate bonds with a 30-year final maturity.

“The Series 2013A financing enables Magnolia Manor to secure permanent financing for a recent acquisition and pursue strategic opportunities than will further enhance the strength of the organization,” said Tad Melton, Director in Ziegler’s Senior Living practice.

Berkadia Originates $172 Million Loan for 4 Brookdale Properties

Berkadia Commercial Mortgage LLC recently originated $172.1 million in financing for a portfolio of four Brookdale Senior Living senior living communities  Vice Presidents Christopher Fenton and Heidi Brunet worked with the borrower to refinance the maturing portfolio through Freddie Mac’s Capital Markets Execution (CME) program.

The individual loans were structured as seven- and 10-year adjustable-rate mortgages with 30-year amortization schedules and loan-to-value ratios ranging between 59-75 percent. The four communities, located across Illinois, Missouri, New York and Ohio, consist of 716 independent units and 157 assisted living units, with an average occupancy of 92% at the time of closing.

Ziegler Closes $22 Million BHI Senior Living Financing

Ziegler recently closed the $22,015,000 tax-exempt, fixed-rate BHI Senior Living, Inc. Series 2013A Bonds. BHI Senior Living, Inc. is a not-for-profit corporation and along with the BHI Foundation, Inc. is a member of the Obligated Group.

BHI Senior Living, Inc. owns and operates three continuing care retirement communities  and is the managing agent for two separately incorporated HUD subsidized apartment complexes for older adults and those requiring the features of a specially designed living unit. 

Proceeds from the Series 2013A Bonds will be used to fund various capital projects estimated to cost approximately $18,700,000, plus a portion of the interest on the bonds during the construction period, a Series 2013A Debt Service Reserve Fund and costs of issuance.

The capital projects span all three campuses and consist of 36 new ILUs, 36 new memory care units, demolition costs, architectural drawings for possible expansion projects, and various other renovation and infrastructure projects. Over time, the new projects are expected to add cash to the balance sheet through reimbursement for the payment of prior capital expenditures and entrance fees on the new units. New projects will also generate incremental revenues which should be accretive over time to the debt service coverage ratio and other performance benchmarks.

Love Funding Closes $20 Million of Loans for Two Texas SNFs

Love Funding recently announced the closing of loan refinancings totaling $19.3 million for two Texas skilled nursing facilities.

The loans, originated through the HUD Section 232/223(f) LEAN program, were for Park Valley Inn, a 160-bed facility in Round Rock, and Sundance Inn Health Center, a 128-bed facility in New Braunfels, Texas. 

Leonard Lucas, a senior director out of Love Funding’s Boston office, secured the loans and locked in a low, fixed interest rate for a 25-year term, generating “significant” debt service savings for the borrower. 

Beech Street Closes $55.3 Million of Loans to Refinance SNF Portfolio 

Beech Street Capital, LLC recently announced the closing of $55.3 million of loans to refinance an 808-bed portfolio of eight skilled nursing facilities in Indiana. 

Joshua Rosen, executive vice president of Beech Street, led the transaction out of the firm’s Chicago office for the borrower, Infinity Healthcare Management, LLC. The loans were originated through the HUD Section 232/223(a)(7) program and were able to lock in an attractive interest rate with 25 or 30-year terms, thereby providing significant debt service savings. 

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Three Pillars Senior Living Communities Issued $22.8 Million Bonds

Cain Brothers served as sole underwriter in the issuance of the Three Pillars Senior Living Communities Series 2013 bonds, issued as unenhanced fixed rate bonds and rated “A-” by Fitch on the underlying credit strength of Three Pillars. The $22.82 million bond issuance was used to refund and consolidate all four of Three Pillars’ outstanding debt obligations into a single bond issue.

The Series 2013 bond financing provides Three Pillars with a more stable capital structure by consolidating four outstanding bond issues (two fixed, two variable) into a single fixed rate tax-exempt bond issue with flexible bond covenants and 30-year level debt amortization, at an average yield of 3.99%. The Series 2013 issue enhanced Three Pillars’ risk profile by eliminating interest rate risk and bank renewal risk and improving key credit metrics.

Cain Brothers created an amortization structure that allowed Three Pillars to stretch out its debt structure from 2026 to 2043 and lowered maximum annual debt service by over $566,000—a 26% reduction. 

Three Pillars consists of Wisconsin Masonic Home, Inc., Masonic Center for Health and Rehab, Inc., and Village on the Square, Inc., which together serve as a continuing care retirement community offering independent living, assisted living, and skilled nursing care. In total Three Pillars’ facilities offer 151 independent living units, 95 assisted living units and 85 skilled nursing beds.

Cambridge Arranges $10.2 Million of Loans for Four Nursing Homes

Cambridge Realty Capital Companies reports arranging $10.2 million in HUD Lean loans to Pacifica Nursing and Rehab to refinance four skilled nursing home properties owned by North American Health Care, Inc. in California and Utah.

The fully-amortized loans were arranged for the owner using the HUD Section 232/223(a)(7) funding program and were underwritten by Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-insured HUD loans.

Hymie Barber, National Originations Manager and Managing Director of Catalyst/Cambridge Healthcare Finance in Los Angeles, the company’s West Coast affiliate, led the transaction. Combined, the refinanced loans saved the owner $250,000 in mortgage payments annually, Barber said

The four senior care properties included in the Pacifica portfolio are: Pacifica Nursing and Rehabilitation, a 68-bed skilled care nursing home in Pacifica, Calif. with a $2.08 million loan total; Coventry Court, a 97-bed skilled nursing home in Anaheim, Calif. with a $2.2 million loan total; Garden View, a 97-bed skilled nursing home in Baldwin Park, Calif. with a $2.3 million loan total; and Orchard Park Care Center, an 89-bed skilled care nursing home in Orem, Utah with a $2.5 million loan total. 

Cambridge Provides $14 Million Loan for Chicago Senior Care Center

Cambridge Realty Capital Companies recently announced closing a $14 million loan to refinance Alden Northmoor Rehabilitation and Health Care Center, a 198-bed skilled care nursing home in Chicago.

The fully-amortized, 32-year term loan was arranged for the owner using the HUD Section 232/223(f) funding program and was underwritten by Cambridge Realty Capital Ltd. of Illinois.

Ziegler Closes $14.8 Million Financing for PRCN

Ziegler recently announced the closing of a $14,840,000 tax-exempt, fixed-rate Presbyterian Retirement Communities Northwest Series 2013 Bond issue. Presbyterian Retirement Communities Northwest is a Washington-based not-for-profit corporation established in 1956 to develop, own, and operate senior housing communities.

The Series 2013 Bonds, along with other available funds, are being issued to refund all of PRCN’s outstanding Series 1999A Bonds; pay or reimburse PRCN for the costs of the acquisition of land and the acquisition, construction, remodeling, renovation, and equipping of existing facilities at Exeter House, Park Shore, and the its corporate headquarters; fund a debt service reserve fund; and pay the costs of issuing the Series 2013 Bonds and refunding the Series 1999 Bonds.

KeyBank Arranges $21 MIllion of Loans for Two Senior Housing Properties

KeyBank Real Estate Capital recently closed two HUD Section 232/223(a)(7) loans totaling $21 million for senior housing properties in Maine and Texas. 

One loan was in the amount of $12.5 million for Williamsburg Village Health Center, a 242-unit skilled nursing facility in Desoto, Texas. Alison Holland, VP of Healthcare Agency Lending for KeyBank, worked with the borrower, Stonegate Senior Living, to complete the refinance. 

The other loan was an $8.5 million refinance for Mid Coast Senior Health Center, a 100-unit skilled nursing and assisted living/memory care community in Brunswick, Maine. Jack Boulder, SVP for Key Bank’s Senior Housing and Healthcare Group, and John Everett, VP of KeyBank’s Commercial Banking team, worked with the borrower, Mid Coast Health Services, on the transaction. 

Love Funding Secures $8.95 Million Refinance for Conn. Health Center

Love Funding recently announced the closing of an $8.95 million loan to refinance Birmingham Health Center, a 120-bed skilled nursing facility in Derby, Conn.

Leonard Lucas, senior director of Love Funding out of the firm’s Boston office, secured the loan through HUD’s Section 232/223(a)(7) loan program, allowing Lucas to lock in a low, fixed interest rate over the remaining term of the original loan and generating significant debt service savings for the borrower.

Birmingham Health Center was built in 1965 and underwent renovations in 2003 and 2004. It is operated by Spectrum Heatlhcare, based in Connecticut. 

Lancaster Pollard Refinances 7 Properties in N.C. and Ill. 

Lancaster Pollard recently assisted Oliver Development with the $7.5 million refinance of Cambridge Hills Assisted Living in Roxboro, N.C.

Cambridge Hills is a 120-bed, 60-unit assisted living community built in 2000. Oliver Development was looking to refinance its existing bank debt and obtain non recourse, fixed-rate financing and generate credit capacity with its bank, and followed Lancaster Pollard’s recommendation to use the HUD Section 232/223(f) program for the refinancing. 

John Randolph out of Lancaster Pollard’s Atlanta office, led the transaction, which refinanced existing debt from multiple bank loans into one loan and established a replacement reserve account along with allowing Oliver Development to benefit from significant debt service savings. 

In another transaction, Lancaster Pollard guided Petersen Health Care through its first HUD financings, recommending the Peoria, Ill.-based company to refinance six of its skilled nursing facilities using the HUD Section 232/223(f) program. 

Petersen Health Care owns and operates more than 90 senior living communities in the Midwest and the company’s leadership was looking to strengthen its financial position by refinance existing variable rate loans from a bank syndicate on the six facilities. 

The company’s new long-term FHA loans eliminate the owner’s personal guarantee from the facilities’ debt structure, appropriately leverages each property’s balance sheet, and provides more than $170,000 in annual debt service savings from a lower interest rate and approximately 30-year blended term and amortization. 

Additionally, Petersen was able to use some of the refinancing proceeds to add $1.6 million to the facilities’ replacement reserve accounts and completed $650,000 in capital improvements in conjunction with the refinance. Steve Kennedy, senior vice president with Lancaster Pollard out of the Columbus, Ohio office, led the transaction. 

Capital One Closes $48 Million Loan for LCS-Westminster Partnership

Capital One Bank announced recently it served as the lead bank and administrative agent for a $48 million, five-year term loan to LCS-Westminster Partnership, IV LLP.

The loan will be used to refinance and expand Sagewood, a newly constructed senior living community located on 47 acres in Phoenix, Ariz. with 278 independent living units, a 48-bed health center with skilled nursing and assisted living units. The loan will also be used to finance the construction of 14 additional casitas to the existing 24, and complete a second dining venue for Sagewood.

LCS-Westminster is a joint venture of The Westminster Funds and LCS, with The Westminster Funds serving as the majority equity partner for LCS-Westminster developed projects. 

Love Funding Secures $28 Million Refi for Two Miami SNFs

Love Funding recently announced the closing of two loan refinancings totaling $28 million for two skilled nursing facilities that are part of the Plaza Health Network.

Arch Plaza Nursing and Rehabilitation Center and Ponce Plaza Nursing and Rehabilitation Center are among nine senior care facilities in the Miami area that are part of the Plaza Health Network, owned by independent affiliates of the Hebrew Homes Health Network, a not-for-profit organization. 

Love Funding’s Washington, D.C. office secured the loan through the HUD Section 232/223(f) LEAN program, which enabled the borrower to lock in a low fixed-rate non-recourse loan for a 30-year term. 

Love Funding Closes $5.5 Million Construction Loan for Ill. ALF

Love Funding recently announced closing a $5.51 million construction-to-permanent loan for Cedarhurst of Edwardsville, a new assisted living community under development in Edwardsville, Ill.

Robyn Cunningham, a senior director out of Love Funding’s St. Louis office, together with Director Adrian Hartman, secured the financing through the HUD Section 232 new construction loan program. The program enabled the borrowers to lock in a fixed, low-rate, non-recourse loan for a 40-year term once construction is completed.

Cedarhurst at Edwardsville will offer 54 memory care beds and is being developed by Metro Asset Group LLC. 

National Health Investors Announces $370 Million Credit Facilities

National Health Investors (NYSE:NHI) announced recently it has entered into amended $370 million senior unsecured credit facilities including a $250 million revolving credit facility and $120 million of 7-year term loans.

The revolving credit facility matures in five years, including an embedded 1-year extension option. The term loans mature in seven years. At closing, the new facilities replaced smaller credit facilities that originated on May 1, 2012 and provided for $320 million of total committed facilities. 

“We appreciate the considerable commitments offered by the banks participating in this credit facility, which result in low borrowing costs, extended loan maturities and additional borrowing capacity that offers substantial support to NHI’s growth,” said Justin Hutchens, president and CEO of NHI. 

Wells Fargo Securities, LLC, BMO Capital Markets and KeyBank National Association were joint lead arrangers for the facilities and arranged a syndicate that included nine banks. BMO Capital Markets and Wells Fargo Securities, LLC were joint lead arrangers for the $120 million 7-year term loan facility. Other banks in the credit facility are Bank of America, Regions Bank, Pinnacle National Bank, United Community Bank, Stifel Bank & Trust and UMB Bank.

The terms of the amended credit facility can be seen here.

Health Care REIT Announces Continued Conversion Option for Senior Notes

Health Care REIT (NYSE:HCN) on July 1 notified holders of its 3.00% Convertible Senior Notes due 2029 of their continued ability to convert all or a portion of their notes into cash and, if applicable, shares of the company’s common stock through the close of business on Sept. 30, 2013.

The notes remain convertible because the closing price of shares of HCN’s common stock, for at least 20 trading days during the 30 consecutive trading-day period ending on June 28, 2013, was greater than 120% of the conversion price in effect on that date.

More details can be viewed here.  

NorthStar Realty Finances Completes $1.1 Billion Offering for Non-Traded REIT

NorthStar Realty Finance Corp. (NYSE: NRF) announced on July 1 that NorthStar Real Estate Income Trust, Inc. successfully completed its primary offering having raised $1.1 billion in aggregate gross offering proceeds, including $528 million year-to-date, through its captive broker-dealer, NorthStar Realty Securities, LLC. 

“We are extremely pleased with the successful completion of our first sponsored non-traded REIT and are looking forward to capitalizing on this strong momentum with our $2.75 billion of additional non-traded products currently being offered,” said David T. Hamamoto, chairman and CEO. “These programs are expected to generate substantial long-term fee income for our shareholders and the completion of NorthStar Income is a strong testament to the growth of our asset management business and our diverse and broad commercial real estate platform.”

Capital One to Hold $100 Million Loan for Formation Capital

Capital One Bank acted as a joint book runner on a $213.5 million secured term loan to FC Ranger Acquisition, LLC, to finance the acquisition of a portfolio of 26 senior housing properties. 

Formation Capital is the sponsor behind FC Ranger Acquisition, LLC and partnered with SAFANAD for the acquisition. 

Capital One Bank will hold $100 million of the term loan and will also provide deposit and treasury management services to the facilities. 

Caremerge Raises $2.1 Million for Business Expansion

Caremerge, a Chicago-based health tech provider of mobile and web communication and care coordination solutions, has raised $2.1 million in a Series A Funding.

The company’s HIPAA-compliant and secure mobile/web apps allow senior care providers to quickly capture, chart, and share seniors’ information with families and outside stakeholders such as ACOs, MCOs, hospitals, and physicians.

“Today, long term care is challenged with increasing regulations, high staff turnover, reduced reimbursements and lower profit margins,” says Asif Khan, the founder of Caremerge. “Most people believe that the long-term care industry is slow to adopting technology. At caremerge, we beg to differ and believe that until now technology hasn’t adopted to the unique challenges and workflows of long-term care.”

Grazyna Kulczyk of Poland, an entrepreneur, real-estate developer, and art collector, led the investment, with participation from another Switzerland-based investor.

Athena Heritage, a Swiss Financial Management company, provided advisory services to the investors, and Privity FZ LLE, a U.A.E.-based company, also played a key role in the transaction. 

Caremerge was founded in 2010 and was selected by GE and StartupHealth in a Health Growth Acceleration program in April 2013. 

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Lancaster Pollard Assisted Kan. CCRC with Bond Refinance

Lancaster Pollard recently assisted Brewster Place Retirement Community, a not-for-profit continuing care retirement community in Topeka, Kan., in refunding an existing bond issue.

The 30-acre CCRC has 229 independent living units, 28 assisted living units and a fully licensed 97-bed skilled nursing facility. Lancaster Pollard developed a credit profile for Brewster Place and solicited an investor that provided the lowest cost of capital with the greatest flexibility.

The organization refunded the existing bonds with a private placement of $10 million in tax-exempt bonds at a fixed interest rate of less than 3.5% for 12 years. Part of the proceeds will be used to finance nearly $2 million in general improvements. Additionally, the existing debt service reserve fund was released and not required for the new bonds. Bill Wilson, senior vice president and regional manager of the firm’s office in Lawrence, Kan., was the lead banker on the transaction.

Love Funding Secures $8.7 Million Loan for Calif. Skilled Nursing Facility

Love Funding recently announced the closing of an $8.7 million loan refinancing for Country Villa Rehabilitation Center, a skilled nursing facility in Los Angeles, Calif.

Senior director Leonard Lucas out of Love Funding’s Boston office, together with Citra Capital Management LLC, secured the loan through the Department of Housing and Urban Development’s Section 232/223(f) LEAN loan program. The loan refinanced existing debt with a low interest rate that is fixed for 26 years. The refinancing provided enough additional proceeds to fund repairs and property improvements. 

Country Villa has 180 beds and is part of the Country Villa Health Services network, a family-owned and operated company that began operations in 1969 and has grown to one of the largest skilled nursing providers in California. 

Cain Brothers Closes $25 Million Bond Issue for Cayuga Medical Center

Cain Brothers announced it has structured and closed $25.0 million of tax-exempt revenue bonds for Cayuga Medical Center, a 190-bed health care facility located in Ithaca, N.Y. The financing consisted of a 10-year fixed rate bank direct purchase used for the purpose of reimbursing various project costs.

On behalf of CMC, Cain Brothers conducted a competitive bid process to determine the bank partner from a group of regional and national banks. Cain Brothers negotiated best and final proposals from all participants. The tailored process allowed CMC to achieve a favorable interest rate, a longer term, favorable security terms, and a reasonable covenant package.

Greystone Originations $28 Million Financing Two Senior Apartment Complexes

Greystone recently announced that it has provided a total of $28 million in bridge loan financing to United Group of Companies Inc., for two market rate senior apartment communities located in New York and Georgia. The loans were originated by Donny Rosenberg, a Managing Director in Greystone’s multifamily lending group, in conjunction with Steve Germano, Managing Director of Greystone’s Portfolio Lending Group.

The loan proceeds were used to refinance existing debt, and Greystone will work with United Group of Companies to provide long-term financing prior to the maturity of the bridge loan.

Schulyler Commons in New York and The Lodge at BridgeMill in Georgia received $28 million of loan proceeds through Greystone’s bridge loan program. Both properties received attractive terms with a new maturity allowing the borrower to execute their business plan.

Berkadia Funds $60 Million Portfolio of SNFs in Arkansas for OHI

Berkadia Commercial Mortgage, LLC recently originated $59.8 million through the Department of Housing and Urban Development’s Section 232/223(a)(7) program to refinance a portfolio of 12 skilled nursing facilities in Arkansas. 

Jay Healy, assistant vice president of Berkadia, worked with borrower Omega Healthcare Investors, Inc. (NYSE:OHI) to secure the financing. 

OHI acquired the assets in December 2011 and assumed HUD debt through a transfer of physical assets from the previous owner. Berkadia closed all 12 loans simultaneously on March 26, 2013. As a result of the portfolio refinance, OHI is realizing approximately $1 million in annual debt service savings. 

The portfolio consists of individual loans ranging from $1.9 million to $9.4 million, spanning more than 1,400 beds.

Ziegler Closes $37.7 Million SNF Portfolio Refinance

Ziegler Financing Corporation, the FHA-insured mortgage lending arm of Ziegler, recently announced the successful closing of the $37,653,300 portfolio refinancing of six skilled nursing facilities, owned and operated by Extendicare Health Services, Inc. 

Extendicare is the U.S. subsidiary of Extendicare Inc. (TSX:EXE), which operates 150 senior care communities nationwide. ZFC assisted Extendicare with the refinancing of their existing facilities located in Michigan, Minnesota, and Wisconsin using FHA’s Section 232/223(f) refinancing program. 

ZFC closed more than $136 million (par amount) of FHA-insured loans in 2010, 2011, and 2012 on behalf of Extendicare. 

LTC Properties Prices Public Offering of 3.5 Million Shares of Common Stock

LTC Properties, Inc. (NYSE:LTC) announced last Friday it priced its underwritten public offering of 3.5 million shares of its common stock at $44.50 per share. LTC Properties has also granted the underwriters a 30-day option to purchase up to 525,000 additional shares of common stock to cover over-allotments, if any.

The Westlake Village, Calif.-based REIT expects net proceeds of about $149 million from the offering, or $171.3 million if the underwriters exercise the overallotment option in full. 

Wells Fargo Securities, KeyBanc Capital Markets, BMO Capital Markets and RBC Capital Markets are acting as joint book-running managers for the Offering. Sandler O’Neill + Partners, L.P., CSCA, J.J.B. Hilliard, W.L. Lyons, LLC, JMP Securities LLC and Sidoti & Company, LLC are acting as co-managers for the Offering.

LTC Properties intends to use the net proceeds from the offering to pay down amounts outstanding under its unsecured line of credit, to fund acquisitions and the current development pipeline, and for general corporate purposes.

The offering is expected to close on May 8, 2013, subject to customary closing conditions.

Cambridge Closes $44.2 Million in Loans 

Cambridge Realty Capital Companies recently announced closing on a $19.8 million FHA-insured HUD Lean loan to refinance Horizon Health and Subacute Center, a 180-bed skilled nursing home in Fresno, Calif.

The fully-amortized, 30-year term loan was arranged for the owner, a California limited partnership, using the HUD Section 232/223(f) funding program.

Hymie Barber, Cambridge’s National Originations Manager and the Managing Director of Catalyst/Cambridge Health Care Finance in Los Angeles, the company’s West Coast affiliate, coordinated the transaction, which was underwritten by Cambridge Realty Capital Ltd. of Illinois.

Cambridge also recently announced it has closed on a $14.4 million FHA-insured HUD Lean loan to refinance Skokie Meadows, a 224-bed skilled and intermediate-care nursing home in Skokie, Ill.

The fully-amortized, 29-year term loan was arranged for the owner using the HUD Section 232/223(a)(7) funding program. Cambridge Realty Capital Ltd. of Illinois underwrote the loan.

The company announced on Thursday the closing of a $7.3 million FHA-insured loan to refinance Burbank Rehabilitation and Healthcare Center, a 188-bed skilled care nursing home in Burbank, Calif.

The 27-year term loan was arranged using the HUD Section 232/223(a)(7) program and was also arranged by Hymie Barber and underwritten by Cambridge Realty Capital Ltd. of Illinois. 

Also on Thursday, Cambridge announced the closing of a $2.7 million loan to refinance Oakley Courts, a 46-bed assisted living facility in Freeport, Ill.

The 35-year term loan was arranged for the owner using the HUD Section 232/223(a)(7) funding program and was underwritten by Cambridge Realty Capital Ltd. of Illinois. 

Oak Grove Capital Closes $259 MIllion Credit Facility for Brookdale

Oak Grove Capital this week the closing of a $259 million Fannie Mae DUS credit facility for Brookdale Senior Living Inc. (NYSE:BKD). The 10-year, variable-rate facility was used to refinance existing mortgage debt.

“Fannie Mae was very creative in designing a credit facility to accommodate differing maturity dates for Brookdale’s debt and the repayment of tax-exempt bonds on a date certain,” said Bill Kauffman, managing director of Oak Grove Capital’s Seniors Housing and Healthcare Finance Group.

Brookdale Senior Living used the new debt to refinance existing loans for 23 different properties, totaling 1,781 units. The collateral pool consists of assisted living, independent living and memory care units located in 10 states, including Florida, New York, Kansas, Pennsylvania and Texas.

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Capital One Closes $19.5 Million Loan for Revera Health Systems

Capital One Bank announced on Monday it had provided a three-year, $19.5 million secured term loan to Revera Health Systems, Inc., a long-term care and rehabilitation provider with multiple skilled nursing centers across the U.S.

Proceeds of the loan were used to refinance existing senior debt on eight of the health system’s skilled nursing facilities in Maryland, New Hampshire, New Jersey, and Vermont. Revera Health Systems also expanded its relationship with Capital One Bank to include despots and treasury management services. 

RED CAPITAL GROUP Closes Acquisition Financing for Ariz. Senior Care Community
 
RED CAPITAL GROUP, LLC recently closed a bridge-to-FHA financing solution for the acquisition of Prescott Nursing and Rehabilitation Center and Boulder Gardens Assisted Living, a 109-bed skilled nursing and assisted living community in Prescott, Ariz.
 
The property, formerly known as Meadow Park Care Center and Peppertree Square, was purchased by an affiliate of Pioneer Health Group, an Arizona-based long-term care community owner and operator.
 
Red Capital Partners, LLC, RED’s proprietary lending arm, closed a $5.96 million bridge loan to finance the acquisition, which closed in December 2012, to accommodate the seller’s closing deadline.
 
At the same time of the bridge financing, Red Mortgage Capital, LLC, RED’s mortgage banking arm, processed a $6.88 million FHA Section 232/223(f) loan, which closed in February 2013, to refinance RED’s bridge loan, fund capital improvements, and provide low fixed-rate, non-recourse permanent financing for the buyer. 
 
Lee S. Delaveris, director of Red Mortgage Capital, LLC, was the lead banker on the transaction. 
 
Cain Brothers Structures $35.5 Million Bond Issue for N.Y. ALF Project
 
Cain Brothers recently structured and closed a $35,515,000 tax-exempt fixed-rate bond issuance for The Hamlet at Wallkill, a 200-bed new construction assisted living community project in Wallkill, N.Y.
 
The FilBen Group, a for-profit developer, owner, and operator of assisted living and skilled nursing facilities, hired Cain Brothers to serve as sole underwriter on the unrated financing for the development and construction of a start-up assisted living community. 
 
The Hamlet at Wallkill will provide high-quality assisted living services to private pay and Medicaid-eligible seniors, in addition to memory care. 
 
Cain Brothers and FilBen used private activity bonds, which are subject to volume cap restrictions, in order to obtain tax-exempt financing at attractive rates. 
 
“Volume cap allotments are awarded on an annual basis; therefore any private activity bonds subject to volume cap requirements must be issued by December 31 of the allotment year,” said Cain Brothers. “Because the necessary volume cap was secured too late in 2012 to market the bonds on a permanent basis before year end, Cain Brothers implemented a strategy that employed a short-term financing mechanism with a three-month mandatory tender. This financing structure preserved the allotted volume cap and allowed long-term capital providers ample time to analyze the project, conduct site visits, and meet with the FilBen management team.”
 
The bonds were remarketed in February 2013, and Cain Brothers was able to secure long-term financing at an attractive cost. Construction is slated to begin in April 2013, with full stabilization expected to occur in Summer 2016.
 
Lancaster Pollard Closes $7.5 Million Loan for Ohio Memory Care Center
 
Lancaster Pollard recently closed two loans totaling $7.5 million to refinance Alois Alzheimer Center in Cincinnati, Ohio.
 
The Health Care Management Group owns and operates the memory care community, which opened in 1987. Lancaster Pollard refinanced the center’s two existing FHA-insured loans with HUD’s non-recourse Section 232/223(a)(7) mortgage insurance program, helping The Health Care Management Group realize more than $103,000 in annual debt service savings.
 
Kass Matt, senior vice president and regional manager at the Ohio-based firm, was the lead banker on the transaction. 

Grandbridge Seniors Housing Closes $5.3 Million Loan for Wash. Community

Grandbridge Real Estate Capital’s Seniors Housing Group recently closed a $5.3 million loan to refinance Highgate Senior Living, a 48-unit assisted living community in Yakima, Wash. Grandbridge facilitated the long-term, fixed-rate loan through Fannie Mae. 

Grandbridge Closes $12 Million Loan for Senior Living Community

Grandbridge’s Seniors Housing Group also recently closed a $12.25 million short-term loan for the acquisition and renovation of Quail Park, a 49-unit assisted living and memory care community in Eugene, Ore.

The loan was through BB&T Bank to allow the community, managed by Living Care, to be repositioned for permanent financing. 

Brookdale Modifies Corporate Line of Credit

Brookdale Senior Living (NYSE:BKD) announced on Wednesday it had modified its existing revolving credit facility with GE Capital, Healthcare Financial Services.

The modification extended the maturity date of the facility to March 31, 2018 and decreased certain costs associated with the facility, along with providing options to increase the committed amount initially from $230 million to $250 million, and then from $250 million up to $350 million. 

The interest rate payable on advances has been decreased through the modification, reducing the LIBOR floor by 1.5% and the spread by 1.25% and reducing the fee payable on the unused portion of the facility from 1.0% to 0.5% per year.

Brookdale secures the revolving credit facility by first priority mortgages on some of its communities. Availability under the revolving credit facility will vary from time to time as it is based on borrowing base calculations related to the appraised value and performance of the communities securing the facility. 

RED Completes 60 Seniors Housing Transactions Worth $460 Million in 2012

RED CAPITAL GROUP, LLC announced last Friday that its banking arm, Red Mortgage Capital, LLC was the top originator for FHA/Ginnie Mae loans in 2012, providing 231 FHA loans totaling $2.176 billion.

During the year, the firm completed 330 transactions totaling more than $3.3 billion in capital to the multifamily, affordable, student, and seniors housing and healthcare industries, representing a 40% increase compared to the previous year’s total number of transactions, and a 13% increase in volume. 

Of the 330 total transactions, 60 were for seniors housing and healthcare deals in 2012, amounting to $460 million.

NorthStar Realty Originates $11.25 Million Loan for Calif. Senior Housing Campus

NorthStar Realty Healthcare recently announced it had originated an $11.25 million senior loan for a senior housing campus in Madera, Calif. The community, built in 2006 and operated by Integral Senior Living, has 112 units offering independent living, assisted living, and memory care. The loan has a 3-year term with an 8% interest rate.

Health Care REIT Announces Conversion Option for 3.00% Notes

On Tuesday, Health Care REIT, Inc. (NYSE:HCN) notified holders of the $494.4 million outstanding principal amount of its 3.00% convertible senior notes due 2029 that they are entitled to convert all or a portion of their Notes into cash and, if applicable, shares of the company’s common stock.

Holders’ right to convert begins on April 9, 2013 and ends at the close of business on July 9, 2013. The notes are convertible because the closing price of shares of the company’s common stock, for at least 20 trading days during the 30 consecutive trading-day period ending on March 31, 2013, was greater than 120% of the conversion price in effect on March 31, 2013.

Love Funding Closes $4.71 Million Loan for Senior Apartment Complex

Love Funding announced on Thursday the closing of a $4.71 million loan refinancing for Porthaven Manor, a 102-unit, age-restricted apartment community in Port Huron, Mich.

Bruce Gerhart, Love Funding’s Midwest regional director, secured the financing through the Department of Housing and Urban Development’s Section 232/223(f) loan insurance program. 

Porthaven Manor, built in 1989 with low-income housing tax credits administered by the Michigan State Housing Development Authority, is restricted for adults aged 62 and older and is required to set aside 20% of its units for income-qualified residents that pay below-market rents. 

The refinancing allows the property’s owners to pay off Boston Financial Institutional Tax Credits, which financed the tax credits. 

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KKR to Provide $150 Million of Equity to Sentio Healthcare Properties

Real estate investment trust Sentio Healthcare Properties, Inc. announced the signing of a definitive agreement with an affiliate of global investment firm Kohlberg Kravis Roberts & Co. L.P. (KKR) for a commitment to provide $150 million of convertible preferred equity to Sentio in the next two to three years.

KKR will invest with Sentio’s current shareholders in the RIET, including the existing portfolio. Proceeds of the commitment will be used to fund new acquisitions.

Loan Origination Requests up 22% in 2012 for Cambridge

Cambridge Realty Capital Companies reports loan origination requests processed by the company climbed 22% during 2012 in what was a record-setting year for senior care and healthcare transactions. 

The company processed 280 loan requests totaling $4.7 billion last year, compared with 230 loans totaling $3.2 billion in 2011. Activity slowed in December, but fourth quarter totals were still substantially higher than the previous year, rising from 51 requests to 75 in 2012.

Lenders close a relatively small percentage of loan origination requests received, says Cambridge chairman Jeff Davis, but Cambridge tracks this information as an indication of market directions.

“We’re observing soaring interest in the HUD 232 Lean program that funds licensed nursing homes and assisted living communities. With low interest rates and greater product accessibility it’s becoming increasingly obvious to borrowers that now is a good time to rethink their financial needs,” he said.

Grandbridge Seniors Housing Group Facilitates Bridge Financing

Grandbridge’s Seniors Housing team facilitated the bridge financing for Artemis Focus Investments, LLC for the recapitalization and minor renovations of Encore Senior Village in New Lenox, Ill.

The Charlotte, N.C.-based firm obtained non recourse bridge financing through its proprietary lending platform, BB&T Real Estate Funding, LLC. 

NorthStar Healthcare Announces Escrow Break

NorthStar Healthcare Income, Inc. announced on Feb. 12 it had satisfied the minimum offering amount in connection with its public offering as a result of its sale of $2 million in shares of its common stock for $9.00 per share to NorthStar Realty Finance Corp. (NYSE:NRF), its sponsor.

NorthStar Healthcare intends to use the proceeds of the offering to originate, acquire and asset manage a diversified portfolio of debt and equity investments in the healthcare real estate sector, with a focus on the mid-acuity senior housing sector such as assisted living, memory care, skilled nursing, and independent living communities that mainly cater to a private-pay census.

Friendship Village Chesterfield Issued $23,470,000 Tax-Exempt Fixed Rate Bonds

Cain Brothers served as sole underwriter in the issuance of Series 2012 bonds for Friendship Village Chesterfield (FVC), which owns and operates a life care continuing care retirement facility in Chesterfield, Mo. The bonds were issued as unenhanced fixed rate bonds and were rated BBB- by Fitch based upon FVC’s underlying credit.

A portion of the bond proceeds were used to fund an expansion project that consisted of 30 new independent living units. At the time of the bond sale, 53% of the new units had been pre-sold. Additionally, bond proceeds were used to fund future capital expenditures and reimburse FVC for refurbishment of its health center last year. The average yield of the bonds was 5.065% for a 30-year maturity.

As part of the engagement, Cain Brothers worked closely with FVC’s board, management company (Life Care Services), and the Project Developer (Life Care Services Development Company) to assist in re-evaluating and modifying its strategic plan, creating a strategic capital plan, refining the development plan, and creating a long-term financing strategy to accomplish future growth initiatives.

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Lancaster Pollard Closes $63.4 Million Refinance for Trilogy Health Services

Lancaster Pollard recently closed on a $63.4 million portfolio refinance for Trilogy Health Services, LLC, which operates multiple senior care communities throughout Kentucky, Illinois, Indiana, Ohio, and Michigan. 

The transaction refinanced eight of Trilogy’s facilities, comprising a total of 568 skilled nursing beds and 340 assisted living units. 

Lancaster Pollard first obtained bridge financing for Trilogy to purchase the real estate associated with the eight leased properties as part of the refinancing structure. The firm then recommended using the FHA Section 232/223(f) program to refinance the bridge debt to take advantage of the federal program’s low fixed rates and achieve significant cash flow savings compared to their former lease payments. 

The firm was able to originate eight non-recourse FHA Section 232/223(f) mortgages with matching term/amortizations of 35 years. The transaction also bolstered Trilogy’s long-term maintenance needs by establishing a well-funded replacement reserve escrow account. 

Sabra Expands New Dawn Relationship With $12.8 MIllion Loan Origination

Sabra Health Care REIT, Inc. (NASDAQ:SBRA) announced on Monday it had entered a $12.8 million mortgage loan agreement with an affiliate of New Dawn Holding COmpany, secured by a first trust dead on a 48-unit memory care facility in Sun City west, Ariz. 

The loan has a 5-year term and bears interest at a fixed rate of 9.0% a year. The loan cannot be prepaid during the first three years of the loan term.

Beginning April 2014, Sabra has an option to purchase the facility that secures the Sun City West mortgage loan for a price equal to the greater of (a) the annualized EBITDAR for the trailing three months prior to option exercise, divided by an EBITDAR coverage ratio of 1.3 and further divided by an implied lease rate of 8.25% (subject to adjustment up to 9.00%), and (b) $16 million.

If Sabra does exercise the purchase option, the REIT would expect to enter a long-term lease with New Dawn affiliates with an initial cash yield consistent with the lease rate used to determine the option exercise price.

The memory care facility was built in 2012 and is operated by affiliates of New Dawn. Sabra funded the loan with available cash. 

Beech Street Capital Closes $6.1 Million in Loans for Two Senior Care Facilities

Beech Street Capital, LLC recently announced the closing of $6.1 million in loans used to refinance a portfolio of two assisted living communities, one in Wheeling, Ill. and the other in Northville, Mich.

The portfolio has a total of 88 units and exclusively care for residents with memory impairments. 

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

“We were able to achieve significant debt service savings for the borrower on both properties, which will allow them an opportunity to deploy excess capital into other opportunities that may arise,” said Rosen.

Beech Street was also able to extend the term of the Harbor House loan.  

HFF Gets National Seniors Housing Designation from Freddie Mac

HFF announced Tuesday that it had been approved for a National Seniors Housing Designation effective February 1st from Freddie Mac.  HFF is now authorized to sell and service conventional loans secured by multifamily seniors housing properties nationwide.

Cain Brothers Advises Riverside for $75 Million Bond Placement

Cain Brothers served as financial advisor to Riverside Health System in connection with a private placement of $75 million revenue bonds, which closed on Dec. 20, 2012. 

Newport News, Va.-headquartered Riverside is an integrated health system that includes acute care hospitals, senior housing communities, and nearly 500 employed physicians and advance practice providers.

The borrowing proceeds were used to fund capital improvements at Riverside’s flagship hospital, Riverside Regional Medical Center.

Cain Brothers negotiated a 10-year fixed rate direct bank placement with PNC Bank and was able to secure an attractive cost of capital without any adjustments to Riverside’s existing security package, the investment banking firm announced. 

Ensign Doubles Revolving Credit Facility to $150 Million

The Ensign Group, Inc. (NASDAQ:ENSG) announced on Wednesday that the company and its operating subsidiaries had increased its revolving credit facility from a six-bank lending consortium arranged by SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC by $75 million to an aggregate of $150 million, $20 million of which was drawn as of Feb. 1, 2013. 

The proceeds of the credit facility will be used to fund acquisitions, renovate and upgrade existing and future facilities, cover working capital needs, and for other corporate purposes.  Ensign’s current net-debt-to-EBIDTAR ratio is 2.34x. 

Ziegler Closes $71.25 Million Financing for ABHOW & The Terraces at Los Altos

Ziegler recently announced the closing of the $71.25 million fixed-rate, Series 2013 Bond issue for American Baptist Homes of the West’s (ABHOW) Obligated Group.

Proceeds will fund a major redevelopment of The Terraces at Los Altos, ABHOW’s first community, which opened in 1949 on about 6.3 acres in Los Altos, Calif. The Series 2013 Bond proceeds will be used to pay retain costs of the redevelopment, expansion, and operation of the community (other ABHOW funds were used for project costs up to the date of issuance of the Series 2013 Bonds), fund debt service reserve funds for each series, pay a portion of the interest on the Series 2013 Bonds during construction of the approximately 36-month project, and pay certain costs relating to the issuance of the Series 2013 Bonds.

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Cain Brothers Arranges $11.2 Million Loan for Ore. Senior Care Facility

Cain Brothers Funding arranged an $11,212,000 taxable loan insured under the FHA Section 232-223(a)7 LEAN program for Dallas Health Care Center, a 161-unit skilled nursing, assisted living, and memory care facility located in Dallas, Oregon. The proceeds of the new loan were used to refinance an existing FHA-insured loan.

The new FHA-insured loan has an interest rate of 2.50% for 32 years. This new loan will generate annual debt service savings in excess of $340,000.

Beech Street Capital Closes $9.6 Million Refinance for Ill. SNF

Beech Street Capital, LLC recently closed a $9.6 million loan using the HUD Section 232/223(a)(7) program to refinance Lake Park Center, a 210-bed skilled nursing facility in Waukegan, Ill. 

The transaction was originated by Joshua Rosen, executive vice president of Beech Street Capital working out of the company’s Chicago office.

Beech Street was able to negotiate a deal to cut in half the borrower’s original interest rate of more than 5%, and was also able to make the case with HUD that the borrower’s professional liability coverage was sufficient given its excellent claims history, even though it doesn’t comply with current guidelines. 

Ziegler Closes $78.6 Million Epworth Villa Financing

Ziegler recently closed a $78,635,000 fixed-rate, Series 2012 Bond issue for Epworth Villa, a continuing care community located in Oklahoma City, Okla. on an approximately 40-acre campus. Epworth Villa is related to the Oklahoma Annual Conference of The United Methodist Church and currently has 227 independent living units, 87 skilled nursing beds, 26 traditional memory support beds, and 24 memory support assisted living beds.

The Series 2012 Bonds are being issued to refund a portion of prior debt; finance the expansion and repositioning project; fund various debt service reserve funds; fund a portion of interest on the new money-related bonds; and pay certain costs of issuance. The Series 2012 Bonds are all unrated fixed-rate bonds, and include two series of TEMPSSM to be redeemed with entrance fees, and longer-term fixed-rate bonds.

GE Capital Serves as Administrative Agent for $65 Million Senior Credit Facility

GE Capital, Healthcare Financial Services announced today that it is serving as administrative agent on a $65 million senior secured credit facility for National Hospice Holdings, LLC doing business as Life Choice Hospice. The financing supports Life Choice’s acquisition of SolAmor Hospice Corporation from Genesis HealthCare, LLC. GE Capital Markets served as sole lead arranger and bookrunner on the facility.

Life Choice Hospice is a privately owned and operated hospice organization headquartered in Dresher, Pa. The company offers comprehensive services including case management, pain management, palliative care, personal care, counseling, spiritual care and emotional support. With the acquisition of SolAmor Hospice, the organization will provide hospice services from 29 offices across 12 states.

Cain Brothers Arranges $120 Million Refi and Debt Restructure for CCRC

Cain Brothers recently assisted Mirabella Seattle in restructuring and refinancing its 2006 bonds. The investment banking firm served as lead underwriter on Mirabella’s $89.24 million Series 2012 Bonds and also assisted with respect to the restructuring of $30.75 million of subordinated bonds with banks that provided letter of credit support for the 2006 bonds. The 2012 bonds are unrated.

Ziegler Closes $127.5 Million ESC Financing

Ziegler recently announced the closing of the $127,480,000 fixed-rate, Series 2012 Bond issue for Episcopal Senior Communities (ESC), a California not-for-profit public benefit corporation providing housing, related facilities, and services for elderly.

The Series 2012 Bonds are being issued to (i) refund prior Series 2000 VRDBs; finance the expansion and renovation of Spring Lake Village; fund various debt service reserve funds; fund a portion of interest on the new money-related bonds; and pay certain costs of issuance.

The Series 2012 Bonds are all rated fixed-rate bonds, and include three series of TEMPS to be redeemed with entrance fees, and two series of longer-term fixed-rate bonds.

Ziegler Closes $24 Million Financing for New Mexico Retirement Community

Ziegler recently closed a $24,030,000 fixed-rate, tax-exempt, Series 2012 Bond issue for El Castillo Retirement Residences in Santa Fe, New Mexico.

El Castillo Retirement Residences, Inc., a nonprofit organization organized in 1969, owns and manages El Castillo Retirement Residences, the first continuing care retirement community in New Mexico that remains the only Santa Fe retirement residence offering life care to its residents under a “continuing care” concept. 

Proceeds of the Series 2012 Bonds, together with other sources of funds, will be used to refund, on a current basis, the outstanding Series 1998 Bonds in the amount of $12,230,000 and to fund approximately $11,700,000 in improvements to the health center, says Ziegler. The improvements will include expanding and renovating the health center by adding new assisted living, memory care, and skilled nursing units and beds. In addition, El Castillo Retirement Residences, Inc. plans to renovate and convert some existing semi-private nursing beds into private rooms.

Greystone Communities has been engaged to provide development consulting services and to assist with implementing the development plans.

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Ventas Sells $925 Million of Senior Notes

Ventas Inc. (NYSE:VTR) subsidiaries Ventas Realty, Limited Partnership and Ventas Capital Corporation recently announced the issuance and sale of $700 million aggregate principal amount of its 2.00% senior notes due 2018 and $225 million principal amount of their 3.25% senior notes due 2022. View the 8-K

Cambridge Closes $10.8 Million Loan for Fla. Senior Care Community

Cambridge Realty Capital Companies recently closed a $10.8 million loan to refinance Hawthorne Inn of Ocala, a 156-bed skilled nursing and assisted living facility in Ocala, Fla.

The fully-amortized, 30-year term loan was refinanced for the borrower using HUD’s Section 232/223(f) funding program and underwritten by Cambridge Realty Capital Ltd. of Illinois. 

Lancaster Pollard Obtains $14.3 Million Loan for Neb. Senior Care Facility

Lancaster Pollard recently obtained a $14.3 million loan to refinance Hillcrest Health & Rehabilitation, a Bellevue, Neb. senior care facility built in the 1960s and owned by Hillcrest Health Systems.

Hillcrest used the FHA-insured HUD Section 232/223(f) program to complete the financing, which allows for a refinance with moderate repairs and improvements of up to 15% of appraised value. The loan has a 35-year term that allows Hillcrest to meet its goals of improving the facility. The owner was able to finance a $3.2 million renovation and expansion, and will also benefit from debt service savings of more than $275,000 per year. 

The renovation and expansion project includes a new outpatient rehabilitation area, additional private rooms, and other improvements. 

Cain Brothers Arranges $9 Million Loan for Calif. ALF

Cain Brothers Funding recently arranged an $8,976,000 taxable loan insured under the FHA Section 232/223(f) LEAN program for Eskaton Village Placerville, a 64-unit assisted living facility in Northern California. 

The proceeds of the loan were used to retire existing bonds. The loan has an interest rate of 2.45% for 35 years. 

Cambridge Provides $12.9 Million Loan to Refinance Ill. Senior Care Center

Cambridge Realty Capital Companies has closed a $12.9 million FHA-approved HUD loan to refinance Renaissance Care Center, a 190-bed skilled nursing and pediatrics facility in Canton, Ill. 

The fully-amortized, 37.6-year term loan was used to refinance the borrower using the HUD Section 232/223(a)(7) funding program and was underwritten by Cambridge Realty Capital Ltd. of Illinois. 

Ziegler Closes $64 Million Financing for Nonprofit Senior Services Corporation

Ziegler recently closed a $64,160,000 fixed-rate, Series 2012 Bond issue for Episcopal Communities & Services for Seniors, a California not-for-profit corporation serving seniors in the greater Los Angeles area.

The Pasadena-headquartered corporation owns two continuing care retirement communities (which comprise the Obligated Group), The Canterbury in Rancho Palos Verdes, and The Covington, in Aliso Viejo. 

The Series 2012 Bonds are being issued to refund prior Series 2002 Bonds insured by Cal-Mortgage; fund a debt service reserve; and pay certain costs of issuance. This most recent financing is driven by a desire to create a corporate and capital structure that will facilitate future growth while minimizing current capital costs, as well as to generate annual cash flow savings. 

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Ziegler Closes $73.4 Million Financing for Hawaii CCRC

Speciality investment bank Ziegler recently announced the closing of a $73.4 million fixed-rate Series 2012 Bond issue for Kahala Nui, a 6.6 acre continuing care retirement community located in Honolulu, Hawaii.

Kahala Nui is a “type A” CCRC with 270 independent living units; 63 assisted living suites with 22 designated for memory support; and 60 private and semi-private skilled nursing suites. The community opened in 2005 after being financed by Ziegler in 2003.

The issuance is comprised entirely of “BBB-” fixed-rate bonds that are being issued to advance refund to the Series 2003 A fixed-rate bonds; fund a debt service reserve; and pay certain costs of issuance. The community took advantage of the low interest rate environment to reduce debt service by approximately $1.4 million a year.

“Kahala Nui has exceeded expectations from the start: it filled extremely quickly, has maintained high occupancy with a strong waitlist, and has established a reputation for excellence in its marketplace,” said Mary Munoz, managing director in Ziegler’s senior living practice. “Fitch’s investment grade rating affirms the solid financial stature of the corporation, which will be further enhanced with $1.4 million of annual debt service savings from the refinancing. With its strong management team, beautiful physical plant, and proactive Board, Kahala Nui is truly positioned for long-term success. It typifies the best our industry has to offer.”

Beech Street Capital Closes a $5.6 Million Loan for Ill. Senior Care Center

Beech Street Capital, LLC recently announced that it has provided a $5.6 million loan through the Department of Housing and Urban Development’s Section 232/223(a)(7) program to refinance Peterson Park Healthcare Center.

Peterson Park is a 188-bed skilled nursing facility in Chicago, Ill. The transaction was originated by Joshua Rosen, an executive vice president of Beech Street Capital working out of the firm’s Chicago office.

The financing structure Beech Street proposed allows the borrower to take advantage of “tremendous” debt-service savings with an attractive interest rate. The loan has a 17.5-year term and allows the borrower to keep the same term and amortization period as the existing mortgage.

“The loan had a complicated organizational structure, but the Beech Street team still closed the loan seamlessly,” Rosen said. “Now is the time to take advantage of record low interest rates. We have hit the floor.” 

Cambridge Closes $5.3 Million Loan for Fla. Assisted Living Community

Cambridge Realty Capital Companies recently closed on a $5.3 million HUD Lean mortgage loan for Hawthorne Inn of Lakeland, a 60-bed assisted living property located in Lakeland, Fla.

The fully-amortized, 34-year term loan refinanced the property and was underwritten by Cambridge Realty Capital Ltd. of Illinois, the Cambridge business specializing in FHA-insured HUD loans. The mortgage was through HUD’s Section 232/223(f) program and had an undisclosed interest rate. 

Love Funding Refinances $23.7 Million Portfolio of Mass. Skilled Nursing Loans

Love Funding recently announced the refinancing of four loans totaling $23.7 million for a portfolio of skilled nursing facilities in Massachusetts.

The four properties are Willimansett Center East and Willimansett Center West in Chicopee; Chapin Center in Springfield; and Governor’s Center in Westfield. The Northeast Health Group Inc., a not-for-profit organization, acquired the skilled nursing facilities in 1995. They are operated by Airamid Health Management, based in West Palm Beach, Fla.

Love Funding Director Joshua Hausfeld, out of the firm’s Washington, D.C. office, secured the loans through the Department of Housing and Urban Development’s Section 232/223(f) loan program. Hausfeld used the program to move each of the cross-collaterialized properties from taxable bond and secondary debt to low, fixed-rate, non-recourse notes with 30-year terms. All four transactions will be processed under a newly negotiated master lease that enables the borrower to cross-collateralize the properties under  HUD’s rules.

The Northeast Health Group has been able to tackle a number of operational challenges that may have jeopardized its ability to receive HUD approval, according to Hausfeld. In the past two years, the borrower increased occupancy at its facilities, replaced temporary agency staff with full-time nurses, and hired experienced administrators and key personnel to ensure the facilities were running at their peak potential. 

“They knew what they had to do and they executed their game plan impeccably,” Hausfeld said. “Not only did the improvements they made pave the way for a successful transaction, they set up all four facilities for long-term operational and financial success.”

Cain Brothers Underwrites $27 Million Bond Issuance for Friendship Village

Cain Brothers served as sole undewriter in the issuance of $26,960,000 of tax-exempt fixed rate Series 2012 bonds for Friendship Village Sunset Hills (FVSH). The bonds were rated ‘A’ by Fitch based on FVSH’s underlying credit.

The senior living community used a portion of the bond proceeds to fund the first phase of a multi-year, multi-phase campus redevelopment plan that included the construction of 10 new villas, improvements to campus infrastructure and common areas, and the funding of predevelopment costs for the next expansion phase.

Additionally, the bond proceeds were used to refinance existing fixed and variable rate debt to take advantage of historically low fixed-interest rates and position FVSH for improved capital access and financing flexibility for future capital needs. 

The bonds were structured with serial and term bond maturities and sold to retail and institutional investors. The yield on the 30-year maturity of the bond issue was 4.55%. 

Cain Brothers worked with FVSH’s board, its management company (Life Care Services), and project developer (Life Care Services Development Company) for 18 months to help re-evaluate and modify its strategic plan, create a strategic capital plan, refine the development plan, and create a long-term financing strategy to accomplish future growth initiatives. The bonds increased FVSH’s total debt by nearly 50%, but the finance plan resulted in lower overall maximum annual debt service, the retention of the community’s ‘A’ bond rating, and the creation of a new capital access documentation structure that affords future financing flexibility. 

Oak Grove Capital Closes $14.55 Million of Senior Housing Loans

Oak Grove Capital recently originated Fannie Mae loans for three senior housing properties totally approximately $14.55 million:

  • A $3.55 million loan for Columbia Cottage-Hanover in Hanover, Pa., closed on Aug. 31
  • A $4.70 million loan for Columbia Cottage-Hershey in Hershey, Pa., closed on Aug. 31
  • A $6.23 million loan for Chandler Place in St. Anthony, Minn., closed on Aug. 31

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