ROANOKE, TEXAS — Civitas Senior Living and LKP Ventures will develop Harvest Senior Living, an 83-unit assisted living and memory care community in Roanoke, a northern suburb of Fort Worth. The property will be situated on 5.2 acres along State Highway 114, span 67,000 square feet and offer resort-style amenities. The groundbreaking is slated to occur this spring.
SAN FRANCISCO — San Francisco Campus for Jewish Living (SFCJL), a continuing care retirement community in San Francisco, has opened a preview center at its 190-unit Frank Residences expansion. The $140 million project will add 113 assisted living apartments and 77 memory care suites. The expansion includes 270,000 square feet of new construction, plus renovations to the community’s 362 skilled nursing units. The new units are slated for occupancy in late 2019. “SFCJL leadership embarked on this project because they saw there was a real need in the community for modern housing where older adults could receive higher levels of care,” says Staci Chang, director of marketing and communications. “With this expansion, we are creating an economically sustainable model that will be viable for generations to come and expanding our services to serve the needs and wants of a broader population of older adults and their families.” In addition to the new residential units, SFCJL is creating a “downtown” on campus with social and cultural activities, as well as medical services. Named Byer Square, the area will feature a primary, specialty and integrative health care clinic, along with a fitness and aquatics center, library, café, cinema, and a cultural and …
PENNSYLVANIA, NEW JERSEY, CONNECTICUT, WEST VIRGINIA AND MASSACHUSETTS — KeyBank has provided a $142.1 million acquisition loan for a 15-property, 2,147-bed skilled nursing portfolio. Six of the properties are in Pennsylvania, four in New Jersey, three in Connecticut, one in West Virginia and one in Massachusetts. The total purchase price was $204 million. Manhattan-based private real estate investment firm Next Healthcare Capital entered into a real estate partnership with Genesis Healthcare to acquire the portfolio from seniors housing REIT Welltower (NYSE: WELL). Genesis acquired a 46 percent ownership interest in the portfolio. Genesis will continue to operate the facilities under a new long-term, triple-net lease that includes a Genesis purchase option beginning in 2026, plus no rent escalators for the first five years. Seven additional Welltower-owned properties were sold to a third party and Genesis will no longer operate those facilities. Henry Alonso, Jonathan Slusher and John Randolph of KeyBank Real Estate Capital arranged the $142.1 million loan. Terms of the financing were undisclosed. — David Cohen
ATHENS, GA. — SunTrust Bank has provided $35 million in financing to support the development of Presbyterian Village Athens in Athens. The 70-acre continuing care retirement community (CCRC) will feature a total of 229 units. Development costs are estimated at $143 million. Presbyterian Homes of Georgia is developing the property, breaking ground in September 2018. The project is scheduled for completion in early 2021.
RENO, NEV. — Clearwater Living, in partnership with Goldman Sachs, has started construction of Clearwater at Rancharrah, an assisted living and memory care community. The property will be located within the Rancharrah master-planned development in the heart of Reno. The surrounding Rancharrah community will offer a variety of retail, restaurants and recreation to residents. “We are excited about this location within the Rancharrah master-planned community as well as being adjacent to our partners at Revel Rancharrah, an independent living community,” says Tony Ferrero, Clearwater’s CEO. “Clearwater at Rancharrah completes the full continuum of care providing residents assistance with activities of daily living in a state-of-the-art assisted living community.” The two-story community will offer a total of 118 units.
AZTEC AND LOVINGTON, N.M. — Blueprint Healthcare Real Estate Advisors has arranged the sale two seniors housing properties in New Mexico for an undisclosed price. The portfolio consisted of 150 skilled nursing beds and 25 independent and assisted living units. One property is located in Aztec, in the northwest corner of the state, and the other is in Lovington, in the southeast corner of the state. Blueprint handled the transaction on behalf of the seller, Sioux Falls, S.D.-based The Evangelical Lutheran Good Samaritan Society, a nonprofit owner-operator for which the assets represented a non-core disposition. A Southern California-based private investor interested in expanding in New Mexico was the buyer. Amy Sitzman and Hayden Behnke of Blueprint led the transaction.
Mark Gould, national production manager of M&T Realty Capital Corporation, believes the seniors housing continuum of care may hold vast opportunities for those with the know-how and discipline to weather any short-term storms. Where do lending opportunities – and challenges – lie in 2019? Gould: We have been active in the seniors housing sector for a very long time. We see this asset class continuing to grow in 2019 as the U.S. aging population will drive growth. Challenges will lie with inexperienced parties trying to capitalize on the favorable demographic trends who do not fully understand the complexity of operating in the healthcare space. Wage pressures and nurse staffing shortages will further heighten the operating challenges in this space. I also think dollar volumes will stay steady. Rising rates have placed some DSC [debt service coverage] limitations and have required more equity into deals. There didn’t seem to be as many large portfolio deals in fiscal year 2018, which we believe resulted in a heightened number of transactions. This is an indication of a healthy market. Does the seniors housing market have room to grow beyond its 2018 activity? Gould: We are seeing some very innovative solutions from our customers that …
NEW CITY, N.Y. — Capitol Seniors Housing has started construction of Atria New City, an assisted living and memory care community in the affluent hamlet of New City in Clarkstown. Located approximately 30 miles north of Manhattan, the $30 million, three-story, 70,000-square-foot community features 80 residential suites. Atria Senior Living is the operator. Atria New City is scheduled to open in the first quarter of 2020. Meyer Senior Living Studio designed the community. Capitol Seniors Housing also is constructing Stonegate at Greenburgh, an assisted living and memory care community in nearby Greenburgh.
MISHAWAKA, IND. — KeyBank Real Estate Capital and Cain Brothers worked together to secure financing for the construction of Hellenic Senior Living of Mishawaka, an affordable assisted living facility near South Bend. The budget was approximately $28 million and included multiple funding components of debt and equity. Cain Brothers served as the sole managing underwriter of an $18.5 million tax-exempt bond issue that provided nonrecourse construction and permanent financing at a long-term fixed rate of 5.75 percent. In addition, the National Development Council (NDC) provided $9.3 million in low-income housing tax credit (LIHTC) equity. AHEPA National Housing Corp. is developing the 136-unit property, which will consist of 55 studio apartments and 81 one-bedroom units within a 113,000-square-foot building. All of the units will be reserved for tenants whose household income does not exceed 60 percent of the area median income. The monthly charges for the Medicaid waiver units will range from $2,881 for a studio to $3,378 for a one-bedroom unit.
GLENDALE, CALIF. — Dekel Capital has assembled $59.4 million in debt and equity financing for the development of Sage Glendale Senior Living, a 113-bed assisted living and memory care facility in Glendale. Developed by Willis Development, Sage Glendale Senior Living will feature 81 assisted living units, 24 private memory care units, and four semi-private memory care units. Community amenities will include a community garden, library, theater, classrooms, exercise area, commercial kitchen and beauty salon. Slated for completion in first-quarter 2020, the seniors housing community will be located at 509-525 W. Elk Ave., approximately nine miles north of downtown Los Angeles. The financing consists of a $38.7 million construction loan originated by East West Bank and arranged through Dekel Capital’s advisory practice. The four-year financing, with interest-only monthly payments for the first 36 months of the term, was underwritten at 65 percent loan-to-cost ratio. Dekel also provided $20.7 million in joint venture equity through the firm’s proprietary equity fund Dekel Strategic Investors.
