Double duty financing
We wrote last year that Virtus Real Estate Capital and PNC Bank had partnered to provide acquisition financing for LCB Senior Living to acquire two Vermont senior living communities with a total of 297 units for $80 million, or $269,400 per unit. Virtus provided $23 million in equity and PNC provided debt for the remaining $57 million. But, in that acquisition, LCB also purchased a 2.7 acre site just outside of Burlington, Vermont. And who did they turn to finance the construction of a new 102-unit IL, AL and MC community? Why, Virtus and PNC, of course. Arranged by Cushman & Wakefield, PNC provided $18.4 million in construction financing, while Virtus supplied $8.5 million in equity.... Read More »EB-5 helps SummerPlace expand into Sacramento area
A joint venture between PDC Capital Group, a private equity group specializing in EB-5 investments for different areas of real estate including seniors housing, and FCM Capital Partners, a seniors housing developer, is soon starting construction on two more assisted living communities under the SummerPlace brand. Roseville, California-based FCM Capital Partners created SummerPlace Living (which is also headed by FCM CEO, Chris Miller) to develop the pipeline and brought in Salem, Oregon-based Mosaic Management to operate the communities. The development pipeline is valued over $750 million and in the next two years will fund the construction of 25 AL/MC communities, mostly in California... Read More »The Village at Orchard Ridge gets bond financing
The Village at Orchard Ridge, a National Lutheran Community in Winchester, Virginia, is a CCRC that is ready to undergo Phase II of construction with the help of a $67.8 million tax-exempt bond issue. Phase I, which opened in 2013, featured 51 IL cottages, 127 AL units, 18 AL/MC units and 10 private skilled nursing units. With Phase I’s success, National Lutheran Communities & Services (NLCS) is ready to start construction on Phase II this month, which will include an additional 104 IL units, 10 private SN suites, a 15,000 square foot wellness center with an indoor pool and a 150-seat dining expansion. The financing, which will also partially fund 18 IL cottages set to open this month,... Read More »RED Capital fueling Discovery Senior Living
RED Capital Partners is helping to fuel the growth of one Florida seniors housing developer with six to 10 properties in the works in the Sunshine State. Discovery Senior Living currently manages and partially owns (through its affiliate Discovery Management Group) six large “Aston Gardens” independent living communities in Florida, and the company took over operations and received an ownership interest from Plano, Texas-based Conservatory Senior Living at five independent living communities in Texas (totaling 1,051 units) in March 2014. The company has also made other acquisitions in Florida and Alabama. But, Discovery is fast getting into assisted living and memory care development too.... Read More »To expand or not to expand with HUD?
Obtaining construction lending for addition or expansion projects from HUD is rare and is difficult. In fact, in fiscal year 2013, the Department insured mortgages for only 3 projects with 398 units, totaling $16.9 million. The time it takes to go through HUD alone, because it is longer than traditional or commercial financing, steers many away from that option. Plus, the property to be expanded must already have a HUD mortgage on it, and it has to be stabilized. But, if you are willing to wait it out, it may be worth it. Governor’s Village, a 48-unit assisted living community which includes 24 units for residents in need of memory care, was built in 2001, but has been itching to expand... Read More »Schedule a demo
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