Frontier Moving Forward With Financing From Columbia Pacific Advisors
Fresh off of Frontier Management’s ownership restructuring, it was business as usual for the firm, which obtained financing for its newly opened standalone memory care community in Tucson, Arizona. Columbia Pacific Advisors, though its bridge lending platform, CPIF Lending, provided the $6.225 million loan, with a 24-month interest only term and a 12-month extension, to refinance the original construction financing on the 48-unit community. The transaction allows Frontier to continue stabilizing the community and pursue its next development project. The loan, which Frontier expects to pay off within 18 months, was underwritten at a loan-to-value of 66%, but that goes down to 56% upon... Read More »
HFF Closes $115 Million Financing For Seattle Senior Living High-Rise
Columbia Pacific Advisors just received about $115 million in financing for its to-be-built senior living high-rise in Seattle’s First Hill neighborhood. David Fasano, Sarah Anderson, Casey Davison, Ryan Maconachy and Chad Lavender of Holliday Fenoglio Fowler (HFF) represented CPA in the transaction, with HCP, Inc. providing the loan. Location is key for this development, as the community is located within five blocks of three major hospitals and less than a mile away from downtown Seattle. The 24-story building will consist of 194 independent living, 21 assisted living and 28 memory care units, along with an auditorium, full-service restaurant, bistro/café, two bars, a top-level clubroom,... Read More »
HCP Continues To Lighten Its Brookdale Load
The ramifications of Brookdale Senior Living’s latest blow-up have spread beyond just its precipitous drop in share price. Major Brookdale landlord, HCP, Inc., just announced it was reducing its cash NOI and interest income concentration in Brookdale from 27.0% to 15.7%, on a pro-forma basis. The restructuring included the sale of six Brookdale properties for $275 million and the purchase of Brookdale’s 10% interest in two joint ventures for $99 million. In addition, HCP will terminate management agreements with Brookdale on 36 seniors housing operating properties (SHOP) and leases on 32 triple-net communities, with Brookdale waiving all termination fees associated with the management... Read More »
Good News from Brookdale and Capital Senior Living
Finally, we have had some good news from the two largest publicly traded senior living companies, Brookdale Senior Living and Capital Senior Living. Let’s just say, it has been a long time coming. Capital Senior Living reported a sequential increase in occupancy of 30 basis points in the third quarter, an increase that was continuing to rise in September and into October, so the fourth quarter should be upbeat as well. In fact, from June to September same-community occupancy increased by 90 basis points. These numbers exclude their two communities impacted by Hurricane Harvey. On the negative side, labor costs increased by 4% in the third quarter, which contributed to a 2.4% decline in... Read More »