Portfolio of 18 SNFs gets a $100 million refinance
Subsidiaries of Orion Care Services received a $100 million term loan with an accordion feature to refinance a basket of 18 skilled nursing facilities with embedded equity and to allow for $20 million of excess cash to fund future acquisitions and development. The facilities, all located in Ohio and Michigan, totaled 1,257 beds. The loan, valued at $79,554 per bed, came with a seven-year term and 25-year amortization. Plus, a rate of LIBOR plus 250 basis points was swapped out on 70% of the loan to a 4.30% fixed rate. The five banks in the syndicate approved a 75% loan-to-value, but the loan ended up at 70% due to strong appraisal values as a result of improved property performance. Orion... Read More »Berkadia Closes a Big One
Just how did NorthStar Realty Finance Corp. fund its $875 million acquisition of a 32-property senior living portfolio? They hired Chris Fenton and Jay Healy of Berkadia Seniors Housing and Healthcare to secure $648.2 million of Fannie Mae debt. The 10-year fixed-rate financing features a 4.17% interest rate, a 73.5% loan-to-value and a 30-year amortization. All individual loans were cross collateralized and cross defaulted. The 32 properties are in 12 states with 4,012 independent living units and average occupancy in excess of 90%. Read More »Ziegler closes $135 million for Covenant Retirement Communities
Ziegler closed over $135 million in financing for Covenant Retirement Communities (CRC), an Illinois not-for-profit that owns and operates CCRCs in several locations throughout the U.S. The Obligated group consists of 4,769 units in 14 communities across eight states, with 3,065 independent living units, 755 assisted living units, and 949 skilled nursing beds. To refund the company’s outstanding Series 2005 bonds in the amount of $118.11 million, fund a debt reserve fund and pay certain costs of issuance, CRC issued $112.8 million in fixed-rate refunding bonds. Closing concurrently was $22.34 million of variable rate refunding bonds, which were immediately placed with Bank of America with... Read More »HCP funds future growth
Looking to fund its future growth, HCP recently priced $750 million of senior unsecured notes with a fixed rate of 4.00% for 10 years. The price to investors was 99.126% of the principal amount, representing a yield-to-maturity of 4.107%, and a spread over Treasuries of about 195 basis points. After expenses, the net proceeds of the offering are approximately $736.5 million, which HCP plans to allocate to pay off a portion of the debt used for its recent $849 million acquisition of 35 private pay seniors housing communities from Chartwell and its $161 million acquisition of a medical office building in Philadelphia, Pennsylvania. This offering follows HCP’s amending of its master lease... Read More »Bourne Financial Group makes push into seniors housing
Founded in 2014 by Robert and R. Kyle Bourne, Bourne Financial Group (BFG) is set to open its first 10 assisted living communities across the country by the end of 2016, representing an investment of over $200 million. Not short on experience, BFG’s leadership, all formerly of CNL Financial Group, has over 90 years of combined of experience in seniors housing, health care, and real estate finance and investments. In their first two funds, BFG has raised over $45 million in equity, which will go towards building eight communities in various locations across the country. Typically, in a secondary market, their development costs will start around $200,000 per unit, and go up to $240,000 in... Read More »Schedule a demo
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