LTC Properties, Affinity Living Group & Sunwest Management
The story of Sunwest Management keeps creeping up in the news, although not in a bad way this time, as a former Sunwest assisted living/memory care community in Spartanburg, South Carolina, just sold to a joint venture between LTC Properties and Affinity Living Group. Originally built by the former Manorhouse Retirement Communities in 1999, the 87-unit community was sold to Sunwest in 2005 for approximately $6 million, or about $69,000 per unit. The lender, however, foreclosed on the property when the community was just 50% occupied and sold it to private investor Chris Brogdon in 2010 for $4.95 million, or about $57,000 per unit. Average monthly rents fell to $2,400, from $2,625 per month... Read More »
HJ Sims & HUD Plus
With every seniors housing development project, it is always important to have a contingency plan. Having a trusted financing partner goes a long way, too. That is why when a joint venture led by Affinity Living Group ran into some unexpected problems during the lease-up stage of their portfolio of four newly developed assisted living/memory care communities in North Carolina, they turned to HJ Sims to arrange some additional capital. Built between August 2015 and January 2017, these communities combine for 120 assisted living and 152 memory care units, and were developed by the joint venture, with Affinity as the operator. The venture had contributed over $7 million of equity to the... Read More »HJ Sims and HUD Plus
Affinity Living Group recently purchased a 78-unit assisted living/memory care community in Winter Park, Florida (Orlando MSA), with the help of some extra funding arranged by HJ Sims. Sims utilized its HUD Plus program to arrange a $3 million subordinate loan, which supplements Affinity’s existing bridge loan, increases its leverage to 79% and will remain outstanding after the expected HUD take-out. The acquired community was built in 1999 originally with 60 units, but an 18-unit expansion was completed in 2008. It last sold in 2005 for $5.8 million to a financial buyer, who partnered with the existing manager. However, Affinity will take over operations, with a focus of improving... Read More »
An Affinity for HUD
Affinity Living Group’s latest acquisition of two senior living communities in North Carolina was met with more complications than usual. Already with a senior lender on board, Affinity had to find supplemental debt that not only satisfied their own requirements, but also those of the senior lender and of a future HUD refinance. So, HJ Sims provided a $2.475 million mezzanine loan under its “HUD Plus” program, which allows a borrower to leverage up to 92.5% of the market value of a project with HUD-approved secondary financing. Sims funded the subordinate loan by placing $2.475 million of corporate taxable bonds. The communities included a total of 176 assisted living units and 40 memory... Read More »