Bridgeport, Connecticut-based People’s United Bank announced a couple of refinances for seniors housing clients in New England, working with participating banks on both deals. First, up the coast in Mystic, Connecticut, Masonicare of Chester Village is a 179-unit seniors housing campus with independent living, assisted living and memory care services. It opened in 2016. Masonicare received $45 million of debt, with People’s United Bank as the lead holding $30 million and Washington Trust participating with a $15 million hold. There is a seven-year term and 30-year amortization on the debt, which was came in under 67.5% loan-to-value. The transaction replaces mortgages previously held by M&T Bank and Webster Bank. Keith Robertson of Ziegler ran the RFP process.
People’s United Bank didn’t stop there, refinancing a 264-unit CCRC in Lincoln, Massachusetts. Owned by BayNorth Capital and Benchmark Senior Living, with Benchmark as the operator, the community was originally built by Masonic Health System and Deaconess Abundant Life Communities in 2010. The current JV owners bought the campus in 2013 when the original owners defaulted on their tax-exempt bonds. Beginning in 2014, BayNorth and Benchmark added assisted living, memory care and skilled nursing services to the independent living-only campus, which now features 168 IL units, 40 AL units, 24 MC units and 32 skilled nursing beds. Occupancy has been strong throughout the pandemic, averaging 89% through the end of 2020, compared with 95% in 2019.
People’s United Bank’s Ginger Stolzenthaler and Matt Huber had arranged the acquisition and construction debt when they both were with First Niagara Bank. KeyBank purchased First Niagara in 2016 and assumed the debt, that is until it was taken out by this current transaction. People’s was the lead and agent bank holding $26 million of the debt, while Bar Harbour Bank and First MidWest Bank hold $17 million and $14.451 million, respectively. That comes with a five-year term and 30-year amortization, with loan-to-value under 50%.
