WINDHAM, CONN. — Contemporary Healthcare Capital has arranged a $1.5 million mezzanine loan, part of a $6.2 million total acquisition financing for a skilled nursing facility in Windham. Located approximately midway between Hartford and Providence, R.I., Douglas Manor includes 90 licensed skilled nursing beds. The borrower, affiliates of Ryders Healthcare Management, is acquiring the property out of receivership. The new owner plans to use the financing package to implement $1.6 million in capital improvements to the property. The senior lender on the transaction was CoastalStates Bank.
TUKWILA, WASH. — Alliance Residential Co., one of the largest multifamily developers and managers in the country, has broken ground on Marvelle at Southcenter, an active adult community in the Seattle suburb of Tukwila. The 166-unit community marks the launch of Alliance’s active adult brand, Marvelle. The developer noted that baby boomer demand has been strong at its standard multifamily communities, leading it to start building age-restricted properties. Besides the age restrictions, the Marvelle community will also offer 13,000 square feet of indoor amenity space, more than double the common space at its standard apartment complexes. It is also a transit-oriented development and located near the Southcenter area’s many restaurants, retail shops and medical facilities. Urbal Architecture designed the seven-story, 235,828-square-foot property. Apartments range from 500 square feet to more than 1,200 square feet. The community is scheduled to open in fall 2019.
WALL TOWNSHIP, N.J. — Sitar Realty Co. has brokered the $2.2 million sale of 2538 Belmar Boulevard, a 27-unit apartment building designated for seniors in Wall Township. Robert JanTausch and Ronald Schrader Jr. of Sitar represented the seller, the original developer, in the all-cash transaction. They also represented the undisclosed buyer. The two-story building was built in 1992 and is currently deed restricted for senior citizens. The property is being rebranded as Allaire Apartment Homes after interior renovations are completed.
LONG ISLAND, N.Y. — Carnegie Capital has arranged a $24 million bridge loan to refinance a two-story skilled nursing and assisted living facility along the North Shore of Long Island. The borrower is a local owner-operator that has managed the property for over a decade. The community includes 324 licensed beds. The name of the facility was not disclosed. The two-year loan will restructure operating debt and fund a rehabilitation of the upper level. The note features a fixed rate with a flexible exit after the first year to give the owner the option to either refinance or dispose of the asset. JD Stettin of Carnegie Capital arranged the financing. A private bridge fund provided the capital.
Billy Meyer, managing director of Seattle-based Columbia Pacific Advisors, doesn’t mince words when talking about the bridge lender’s cautious approach to financing seniors housing product today. “We don’t underwrite hope as a strategy anymore. It’s just not a good execution strategy, we believe.” Against the backdrop of elevated levels of construction, rising interest rates and operational challenges in seniors housing, Columbia Pacific Advisors is scrutinizing operators heavily before providing funding. “We’re bridge lenders. That is all that we do. Our average loan is 19 months. It’s a short horizon of how far away our exit is, so we need to make sure that [pathway] is very real and clear,” said Meyer. Meyer’s insights on the loan underwriting process came during InterFace Seniors Housing Midwest on Thursday, June 7. The one-day event, which took place at the recently opened four-star Marriott Marquis Chicago at McCormick Place, drew 372 professionals from across the region. Panel discussions focused on everything from design to development to growth strategies for operators, in addition to the state of the capital markets. Moderated by Mike Taylor, senior vice president and group manager for healthcare lending at First Midwest Bank, the capital markets panel also included Ari Adlerstein, …
DALLAS — The Legacy Senior Communities, a not-for-profit organization based in Plano, has broken ground on The Legacy Midtown Park, a $175 million seniors housing community in Dallas. Situated on 10 acres just off North Central Expressway, the property will consist of 184 independent living apartments, 50 assisted living units, 36 memory care residences and 54 suites for short-term rehabilitation or long-term care. Amenities will include multiple dining options and a fitness, aerobics and aquatic center. The project is expected to create approximately 350 jobs upon completion. The developer expects the community to begin opening for some services in fall 2019 with other levels of care becoming available in 2020. SunTrust Bank served as the lead lender for the project with Frost Bank as a participating lender.
OKLAHOMA CITY — A partnership between Denver-based developer Confluent Senior Living and Florida-based management firm Harbor Retirement Associates has broken ground on a 112-unit seniors housing community, HarborChase of South Oklahoma City. The property will be situated on six acres and feature 80 assisted living units and 32 memory care units. Amenities will include a full-service bistro, chapel, clubrooms, beauty salon, library and a fitness and wellness center. The community is scheduled to open in fall 2019.
TUCSON, ARIZ. — Willis Development has completed construction of Sage Desert, an assisted living and memory care community in Northwest Tucson. The community features 86 assisted living units and 20 memory care units, with views of the surrounding desert and mountains. Dekel Strategic Investors provided equity capital for the development, while East West Bank provided construction financing. Milestone Retirement is operating the property. The design team included Jeffrey Demure + Associates and StudioSix5. W.E. O’Neill managed construction. This is the second senior living development project that Willis Development and Dekel have completed together, with a third in California scheduled for groundbreaking later this year.
CHANDLER, ARIZ. — Spectrum Retirement Communities has opened The Enclave at Chandler Senior Living, an independent living, assisted living and memory care community in the Phoenix suburb of Chandler. The three-story, 165,000-square-foot community features a total of 90 independent living units, 45 assisted living units and 24 memory care units. The property will also offer Spectrum’s Residence Club, which offers a transitional step between assisted living and memory care. Spectrum now owns and operates seven seniors housing communities in the Phoenix metro. The developer is based in Denver.
DURHAM, N.H. — Ziegler has closed on $110.5 million in bond financing for the development of RiverWoods Durham, a 222-unit continuing care retirement community (CCRC). The property will be located in Durham, near the Atlantic coast in the southeast corner of the state midway between Boston and Portland, Maine. The community will feature 150 independent living units, 24 assisted living units, 24 memory care units and 24 skilled nursing beds. The financing includes $53 million in permanent bonds, $45.4 million in temporary bonds, and a $12.1 million subordinated note. The bonds are tax-exempt, non-bank qualified bonds issued through the New Hampshire Health and Educational Facilities Authority. RiverWoods Exeter, another property from the same owner-operator, will provide the taxable subordinated note. TD Bank and SunTrust Bank were selected as co-lead banks and People’s United Bank was selected as participant bank for the financing package.