Transactions & Financings: Cushman & Wakefield Brokers PGIM-Revera JV; HumanGood Affiliates with Washington Provider | #seniorliving | #elderly | #seniors
Earlier this month, PGIM Real Estate and Revera Communities affiliate Signature Senior Lifestyle announced a joint venture to develop and manage senior housing communities in the United Kingdom, focusing on submarkets in the greater London area with strong demographic demand.
Earlier this week, global real estate services firm Cushman & Wakefield (NYSE: CWK) announced that it advised Signature in the creation of the JV.
“This particular JV, driven by experienced investors and a highly successful operator, supports the vast lack of supply for fit-for-purpose housing for seniors in greater London,” Caryn Donahue, head of Cushman & Wakefield’s U.K. senior housing practice, said in a statement.
Pleasanton, California-based nonprofit senior housing provider HumanGood announced an affiliation with Living Care Retirement Community, a nonprofit retirement community in Yakima, Washington.
The affiliation, which is pending approval by regulators, will allow the combined organization to provide greater opportunities for career growth and advancement for team members, and add capabilities and resources typically not available to smaller organizations.
Sales and operator transitions
JLL Capital Markets (NYSE: JLL) represented the seller, a private investor, in the $17 million sale of The PArk at Towbridge, a 298-unit senior housing community in Southfield, Michigan. The buyer is a regional owner-operator of multifamily and age-restricted housing. Additionally, JLL represented the buyer in arranging a $25.35 million acquisition and renovation financing package.
The community currently operates as an independent living facility, but the physical plant and location makes it attractive as a repositioning into conventional and age-restricted apartments. Senior Directors David Gaines and Joel Mendes and Detroit Market Lead Dave Macdonald led the transaction. The financing was led by Managing Director Trent Niederberger and Director Stephen Van Leer.
Avanath Capital Management acquired Overlook at Anaheim Hills, a 261-unit mixed-income senior apartment community in Anaheim, California, for $87.5 million. This is the second senior housing community in Orange County purchased by Avanath in the past 90 days.
The firm plans to renovate the property including renovating the clubhouses and community spaces and adding a dog park, as well as incorporating sustainability initiatives to reduce the property’s carbon footprint and generate energy savings.
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Blueprint Healthcare Real Estate Advisors Senior Director Brooks Blackmon was the sole broker in the sale of a 55-unit independent living and assisted living community in the Birmingham, Alabama area. The seller originally acquired the property in 2016 and completed a full renovation which included adding new units. In addition, a new three-story independent living building was constructed to complement the assisted living segment. The buyer is Inspired Healthcare Capital, which will retain the current management to operate the community.
Chicago Pacific Founders acquired The Ranch Estates, a 107-unit senior housing community in Tucson, Arizona. Formerly known as Sage Desert Assisted Living and Memory Care, the property will be operated by CPF’s wholly owned subsidiary, Grace Management.
BHI Healthcare Group arranged $41.9 million in construction financing for the Oasis at Coral Reef, a luxury senior living facility under development in Miami, adjacent to Jackson South Medical Center. BHI provided $31.9 million in financing, and Coastal States Bank provided the balance. The borrower is Royal Senior Care, which owns and operates senior living facilities in the Southeastern United States with a primary focus in South Florida.
The Oasis at Coral Reef will offer a total of 201 independent living, assisted living and memory care units in three buildings, spread over an 8.67-acre campus.
Ziegler closes $39M financing package for Pennsylvania CCRC
Ziegler completed a $39.2 million financing package for Londonderry Village, a retirement community in Palmyra, Pennsylvania offering independent living, personal care and skilled nursing. The package consists of $17.4 million in Series 2021A bonds sold directly to investors, and $21.8 million in Series 2021B/C bonds placed with Fulton Bank.
Proceeds will be used refinance existing debt obligations, finance a planned expansion of the campus, fund capitalized interest, and pay the cost of the bond issuance.
Dwight Capital arranges $22M HUD financing for Minnesota co-op
Dwight Capital Managing Principal Josh Sausoness originated a $22 million Housing and Urban Development 223(a)7 loan for Gramercy Park Cooperative at Lake Shore Drive, a cooperative senior housing community for residents 62 and older in Richfield, Minnesota, Commercial Observer reports.
CBRE arranges $49M refinancing for Capitol Seniors Housing
CBRE Senior Housing Vice Chairman Aron Will, First Vice President Austin Sacco, and Vice President Matthew Kuronen arranged a $49 million refinancing package on behalf of Capitol Seniors Housing and the Carlyle Group, for a portfolio of four communities totaling 91 independent living and 277 assisted living units in the Seattle area. The loan carries a five-year, floating rate term with 36 months of interest only. MBK Senior Housing will continue operating the portfolio.
ORIX completes preferred equity investment for Texas development
ORIX Corporation completed a preferred equity investment fo the construction and start-up costs of a 103-unit senior housing community in Aledo, Texas, currently under development by Civitas Senior Living and Journey Capital.
HJ Sims arranges $4M PACE financing for StoneCreek
HJ Sims completed a $3.8 million retroactive Property Assessed Clean Energy (PACE) financing package on behalf of StoneCreek Real Estate Partners and Civitas Senior Living, for StoneCreek Littleton, a 92-unit assisted living and memory care facility in Littleton, Colorado that opened in January 2020.
StoneCreek was exploring alternative capital sources to provide additional operational leverage when Sims proposed exploring retroactive PACE financing.
Merchants Capital arranges $18M refinance for Harlem senior apartments
Merchants Capital closed an $18.2 million Housing Development Corporation (HDC) Fannie Mae Risk Share loan for Mannie Wilson Towers, a historic affordable housing development located in the Harlem neighborhood of Manhattan. The loan has a 30-year term and a 40-year amortization.
Proceeds will be used for capital improvements and systems upgrades.
Crescent Lenders provides acquisition financing for California assisted living facility
Crescent Lenders provided a $650,000 acquisition loan for Kalnel Living, which helped facilitate the acquisition of an assisted living community in Culver City, California, ABL Advisor reports.
Kalnel put up $600,000 in equity toward the deal.
Fitch announces bond rating updates on 5 CCRCs
Fitch Ratings announced the following bond ratings updates:
- Fitch assigned a “BBB-” issuer default rating to Life Enriching Communities, a CCRC in Cincinnati. Additionally, Fitch affirmed the “BBB-” rating on $175 million in outstanting bonds from Hamilton County, Ohio on behalf of the community. The rating outlook is stable. Key rating drivers include solid demand and market position, improving operations and a completed expansion project, and a stable financial profile despite a pandemic-stressed environment.
- Fitch affirmed the “BB+” rating on $67.3 million in revenue bonds issued by the City of Lenexa, Kansas Health Care Facility to Lakeview Village, a retirement community in Lenexa, Kansas. Additionally, Fitch assigned an issuer default rating of “BB+.” The rating outlook is stable. Key rating drivers include consistent demand in the face of growing competition, solid cost management, adequate capital spending, and steady margins pacing incremental cash growth.
- Fitch assigned a “BB+” rating to $87 million in Series 2021A fixed rate revenue bonds expected to be issued by the St. Johns County Industrial Development Authority on behalf of Life Care Ponte Vedra, doing business as Vicar’s Landing, a retirement community in Ponte Vedra Beach, Florida. Fitch also downgraded the community’s issuer default rating to “BB+” from “BBB” in the context of the debt issuance. The rating outlook was revised to stable from negative. Key rating drivers include a strong operating history, Vicar’s Landing’s reputation as a high-end life plan community in a quality service area, new debt associated with major CapEx projects putting stress on capital ratios, and a moderate short-term stressed financial outlook.
- Fitch has assigned an “A” issuer default rating to Kahala Senior Living Community, a CCRC in Honolulu. Additionally, Fitch and affirmed the “A” ratings on $50 million series 2012 revenue refunding bonds issued by Hawaii Department of Budget & Finance on behalf of Kahala. The rating outlook was revised to positive from stable. Key rating drivers include a desirable location with solid census, consistently solid operations, an elevated debt burden, and an improved financial profile in a pandemic-stressed environment.
- Fitch affirmed the “A-” rating of $12 million in Series 2011 senior living revenue bonds issued by Lucas County, Ohio, on behalf of Sunset Retirement Communities. The rating outlook is stable. Key rating drivers include the community’s status as a single site life plan community with good market demand, manageable capital investment needs, solid core operations, and a stable financial profile throughout the pandemic.
Isakson Living announced that Peachtree Hills Place, a community for people age 55 and older in Atlanta’s Buckhead neighborhood, sold out its first phase of construction — a total of 117 homes. Additionally, only 16 homes remain in the final phase of construction. The community is expected to open in June.
CFG Bank launches workforce development program
CFG Bank launched the Jack and Nancy Dwyer Workforce Development Program, an initiative to provide certified nursing assistant and geriatric nursing assistant training and entry-level job positions to unemployed and underemployed individuals pursuing careers in the health care industry. The bank is committing $1 million to jumpstart the program.
Additionally, CFG Bank is donating $1 million to Living Classrooms, a Baltimore nonprofit organization, to support the renovation and new construction of the Bauer Building, an innovative workforce development hub serving as a connection for unemployed and underemployed Baltimore residents looking to start health care careers. Living Classrooms facilitates this through partnerships with area hospitals, nursing homes and long-term care facilities.