Lument Provides Financing for IL/AL Community in South Carolina
Lument Securities recently closed a $22.8 million bond placement through the 142(d) program, which allows for-profit developers to obtain tax-exempt debt so long as their project meets certain income requirements. The financing gives the borrower, in this case South Carolina-based Whitehall Senior Living, higher leverage, non-recourse debt, with a fixed rate. That allows them to allocate more equity to other projects. Kevin Oakley, director for Lument in the Southeast, led the transaction. The new community will feature 87 units of independent living, assisted living and memory care services. Upon opening, Phoenix Senior Living will then operate it. Read More »
HJ Sims Arranges Refinancing for North Carolina CCRC
HJ Sims returned to a CCRC in Charlotte, North Carolina to arrange a refinancing solution for the campus. The transaction comes nearly two years after HJ Sims closed $12.95 million in tax-exempt Revenue Anticipation Bonds to cover pre-development and development costs for an expansion project. A year later, HJ Sims identified a refunding opportunity for the sponsor’s outstanding Series 2013 bonds. They utilized Cinderella Bonds, which would be taxable until the optional redemption date, after which the bonds would convert to tax-exempt. Sims served as a placement agent and worked with the sponsor’s financial advisor, Pearl Creek Advisors, to conduct a bank solicitation to also refinance... Read More »
Axiom Capital Refinances IL Community in New York
Axiom Capital LLC has provided a $17.4 million loan for the refinancing of a 178-unit independent living community located in Saratoga Springs, New York. The 10-year, non-recourse loan had a fixed interest rate. Since its inception, the community has been owned and operated by a local organization. A life insurance company provided the loan. Read More »
CanAm Capital Finances Construction Project in Florida
CanAm Capital Partners (CACP) has closed a $10 million mezzanine loan for an affiliate of Lloyd Jones, LLC to build a 159-unit active adult and independent living rental community located on a 10-acre site in Port St. Lucie, Florida. The property will operate under Lloyd Jones’ proprietary Aviva brand as Aviva, Port St. Lucie. CACP is a full-service financial firm providing EB-5 investment funds and conventional financing. The $10 million in debt for the Port St. Lucie project was reinvested from the company’s $350 million loan to Florida East Coast Industries’ Brightline rail project. The original loan was a key financing piece in the development of the high-speed passenger rail system in... Read More »
Capital Senior Living, Mixed Messages
Capital Senior Living released its second quarter earnings yesterday, and there was some good news with the bad. On the good news front, occupancy has increased from the February low of 75.3% to 81.8% at the end of July, for a whopping 650 basis point increase. That is among the best we have heard in the industry. Some of the increase came from discounting early on in the recovery, and management said these incentives have begun to decline. The bad news on the occupancy front is that the rate of increase has significantly slowed. April saw a 143-basis point increase, followed by 134 bps in May, and then slowed to 85 in June and a paltry 25 in July. Now, as we have statistically... Read More »
Joint Venture Secures Financing for New Development
A joint venture between Singerman Real Estate and Darnell Capital is developing a brand-new assisted living/memory care community in Palos Verdes, California, thanks in part to construction financing arranged by Richard Swartz, Jay Wagner, Aaron Rosenzweig, Tim Hosmer and Bailey Nygard of Cushman & Wakefield. A large regional bank provided $23 million in debt at favorable terms. Set in a three-story former office building, the community will feature 87 units and 65,000 square feet. Phoenix-based Cadence Living will operate the community upon completion. Read More »
Plains Commercial Handles Texas SNF Sale
Daniel Morris of Plains Commercial handled the sale of a 115-bed skilled nursing facility in Benbrook, Texas. Originally built in 1969, the facility was owned by a regional operator that decided to cull its portfolio and exit the Dallas-Fort Worth market altogether. Plus, the facility went through a difficult time with COVID-19 and saw its census decline significantly. Despite that, the seller was able to build occupancy to near pre-COVID levels by the time of the sale. Another regional owner/operator in a 1031 exchange was selected as the buyer and worked with Loan Star National Bank to finance the deal, which closed approximately six weeks from LOI. Read More »
CBRE Sells Five Communities in the Great Lakes Area
Lisa Widmier of CBRE Senior Housing has sold a portfolio of five assisted living/memory care communities in the Great Lakes region. Appropriately called the “Great Lakes Portfolio,” these communities consist of 514 units in Michigan (with three locations) and Ohio (two locations). Occupancy fell below 50%, and not surprisingly, the portfolio was not making any money at the time of the sale. Lone Star Funds and alternative investment manager Hudson Advisors acquired the portfolio from an unnamed seller. The purchase price was not revealed, we have heard it may have exceeded $115 million, or more than $225,000 per unit. Considering how far occupancy needs to come to improve both margin and... Read More »
Berkadia Refinances AL Community in Hawaii
Berkadia Seniors Housing & Healthcare has refinanced a 123-unit assisted living community in Kailua-Kona, Hawaii, for $16.58 million. Berkadia’s Jay Healy secured the financing on behalf of the owner, who acquired the facility in August 2017 after previously managing the building on behalf of the seller. The 35-year loan paid off an $11.7 million bridge loan that Berkadia had arranged to fund the acquisition and subsequent $4.5 million renovations, which was finished in early 2020. The borrower also used funds from the loan to pay off the remaining unsecured seller financing as well as some outstanding partnership debt. Occupancy was substantially below its potential at the time... Read More »60 Seconds With Steve Monroe: Capital Senior Living Butting Heads
Transcript A few weeks ago, we wrote about the proposed recapitalization of Capital Senior Living. This will give effective control to the investor, Conversant Capital, and result in a lot of dilution to existing shareholders. The investment is also very expensive. We thought that Cap Senior may have had no other choice: either this or face a major liquidity crunch, and possibly bankruptcy. One investor, Ortelius Advisors, with just under a 10% interest, thinks differently, and blasted management in writing. They think there are other ways to recap the company, and that other like-minded shareholders would be willing to help out financially as well. This may all be true, but where were... Read More »Schedule a demo
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