Continuing the series of closings from People’s United Bank that we first covered last week, the bank then closed a $9 million construction loan to cover renovations at a newly merged senior living community in Connecticut. An existing customer of People’s United Bank for many years, Pierce Memorial Baptist Home is a rental CCRC in Brooklyn, Connecticut that features independent living, assisted living, short-term rehab and long-term care services. It recently merged with Connecticut Baptist Homes (CBH) but will continue to maintain a separate state license and cost reports, as per the state.
A plan to renovate and convert an empty SNF wing to a 10-unit AL/memory care building, as well as update the common areas, courtyard and front entrance, required construction financing. So, People’s provided the loan to the borrower, CBH, whose banking partner Berkshire Bank was refinanced as part of the transaction. Although CBH was the borrower, cash flow and real estate of both campuses will support the existing $9 million mortgage and the new loan.
Finally, People’s United Bank facilitated $33.6 million in debt across three different facilities and all on behalf of Notre Dame Health Care in Worcester, Massachusetts. The senior care campus includes a 61-unit assisted living community, a 123-bed skilled nursing facility and an at-home adult and pediatric hospice/palliative care program.
Notre Dame Health Care received an $11.7 million tax-exempt bond to refinance existing bond debt, $20 million in tax-exempt bond proceeds to pay for construction and renovation costs, and a $2 million taxable bond to cover certain costs related to an existing swap agreement. Each credit facility carried a 10-year term, with the two tax-exempt portions having a 30-year amortization, and the construction bonds coming with three years of interest only.
