COVINGTON, WASH. — Seniors housing operator Seniority Inc. and investor Zenith Capital have revealed joint plans for a new 98-unit assisted living and memory care community on three acres in Covington, approximately 25 miles southeast of Seattle. Covington Assisted Living and Memory Care Community include 64 units for assisted living and 34 for memory care. Development cost is estimated at $23.5 million. Construction will start in the second quarter of 2016, with the facility slated to open in summer 2017. This will be the first assisted living and memory care facility in Covington, according to the developers. When completed, Seniority — a subsidiary of American Baptist Homes of the West — will operate the facility. Seattle-based Zenith Capital will oversee the project’s development and financing. The U.S. government’s EB-5 immigrant investor visa program will provide a portion of the project’s overall financing, along with additional equity partners investing into the project.
DALLAS, ORE. — Cain Brothers has arranged $27.6 million bond financing for Dallas Retirement Village, a continuing care retirement community (CCRC) in Dallas, about 15 miles west of Salem. Operated by Life Care Services, Dallas Retirement Village currently features 45 independent living homes, 73 independent living apartments, 65 assisted living units, 20 memory care units and 121 skilled nursing beds. The proceeds from the bonds will be used to construct 40 new lodge-style independent living apartments and a 21,000-square-foot clubhouse, as well as refund $2.5 million of existing debt. Planning for the campus expansion began in 2007, but was placed on hold during the recession.
POLAND, OHIO — RED Mortgage Capital has closed a $3.5 million FHA 232/241(a) loan for Woodlands at Hampton Woods, a skilled nursing and assisted living facility located in Poland near Youngstown. The loan will fund the addition of a new skilled nursing building to the existing 121-bed campus. The Rehabilitation Center at Hampton Woods will include 26 private beds designed for short-term rehabilitation care and a 5,000-square-foot therapy gym. The project is owned and operated by affiliates of Woodland LLC, a locally owned provider of senior care services.
CONROE, TEXAS — Lancaster Pollard’s private equity program, Propero Seniors Housing Equity Fund, has provided $26.7 million to develop Woodhaven Village, a new seniors housing community in Conroe, about 40 miles north of Houston. A joint venture led by Paradigm Senior Living, the landowners and passive individual investors are developing the community, which will include 60 independent living units, 60 assisted living units and 24 memory care beds. The joint venture expects to complete construction in late 2016. Propero is a private equity fund established by Lancaster Pollard to invest in seniors housing properties through triple-net leases with experienced operators.
PORTLAND, ORE. — National Health Investors has acquired Golden Age Senior Living in Portland for $6.7 million. Renovated in 2010 and expanded in 2013, the 40-bed memory care community was 88 percent occupied at the time of sale. The community will be leased to Chancellor Health Care for 15 years with renewal options at an initial lease rate of 7.75 percent plus annual escalators. The purchase was funded with cash on hand and borrowings from NHI’s revolving credit facility. NHI is a REIT specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of seniors housing and medical investments.
ANAHEIM, CALIF. — JCH Senior Housing Group has arranged the sale of Country Villa Health Service’s entire portfolio, which comprises 18 skilled nursing facilities and one assisted living community across Southern California, at bankruptcy auction for $65 million. JCH’s Shep Roylance, Jim Hazzard and Nick Stahler oversaw the auction in U.S. Bankruptcy Court in Orange County. Shlomo Rechnitz, the founder of medical supply company Twin Med LLC and owner of Bruis & Rockport Services, the largest nursing home provider in California, entered the winning bid. Covenant Care and Kaiser submitted a larger bid — $73 million — but Judge Catherine E. Bauer rejected the proposal because it didn’t comply with bid rules. Ron Bender of Levene, Neale, Bender, Yoo & Brill L.L.P. served as bankruptcy counselor to Country Villa, and Hamid Rafatjoo from Venable LLP served as creditor committee counsel. JCH is a consulting firm based in Anaheim Hills.
CONROE, TEXAS — Lancaster Pollard’s proprietary private equity program, Propero Seniors Housing Equity Fund, has partnered with a joint venture mainly consisting of Paradigm Senior Living, the land owners and passive individual investors for the development of a new seniors housing and care facility to be called Woodhaven Village. Located in Conroe, Woodhaven Village will be a 140-unit community consisting of 60 independent living units, 60 assisted living units and 24 memory care beds. Propero is a private equity fund established by Lancaster Pollard to invest in seniors housing properties. Construction on the facility began this summer and will be complete in late 2016.
WINSTON-SALEM, N.C. — Ziegler, a specialty investment bank, has closed $42.6 million in bond financing for Moravian Home, which owns and operates Salemtowne, a nonprofit continuing care retirement community (CCRC) in Winston-Salem. Salemtowne opened in 1972 and consists of 171 independent living units (98 apartments and 73 cottages); 46 assisted living beds; and 84 skilled nursing beds (18 of which are memory care) on 115 acres. The bonds will be used to fund Phase I of Salemtowne’s strategic plan, which includes the construction of a new skilled nursing facility that will initially contain 100 skilled nursing beds (40 of which will be rehabilitation beds) and 20 assisted living memory care beds. The total building size will be approximately 126,780 square feet, with 14,950 square feet devoted to the assisted living memory care beds. The project is a replacement and expansion of existing facilities. The tax-exempt, fixed-rate bonds have a 2045 final maturity (30-years). Davenport & Co. LLC served as a 15 percent co-manager and PFM served as financial advisor on the transaction.
COUNCIL BLUFFS, IOWA AND BELLEVUE, NEB. — NorthMarq Capital has secured a $3.4 million Freddie Mac refinancing loan for two Section 8 affordable housing properties. Maple Second Avenue Apartment Homes is located at 3524 Second Ave. in Council Bluffs. The property features one- and two-bedroom floor plans with a patio/balcony and in-unit washers and dryers. Bellevue Place Apartments, a senior community located at 1808 Warren St. in Bellevue, contains one-bedroom floor plans with paid utilities. John Reed of NorthMarq Capital’s Omaha office represented the borrower, the Seldin Co., in the transaction.
HIGH SPRINGS AND ORLANDO, FLA. — Bank Leumi USA, a full-service commercial and private bank, has provided $16.7 million in total refinancing to Plantation Oaks Senior Living Management, a Florida-based owner/operator. The first loan is secured by a first mortgage on an existing seniors housing community located in High Springs, comprising 37 assisted living units and 29 memory care units. The credit facility was structured with a $5 million initial funding and a $1.2 million earn-out. The second credit facility is secured by an existing senior housing community located in Orlando, comprising 17 independent living units, 86 assisted living units and 22 memory care units. The $10.5 million financing was structured with an initial funding of $5.4 million, a $3.5 million holdback to fund the expansion of a 48-unit memory care building and a $1.6 million earn-out. Both of these loans refinanced existing debt, lowered the interest rate and provided a dividend to the owners of the communities. The fixed-rate loans have a five-year term and are intended to serve as a bridge to agency financing or to the future sale of the communities. Hely Santeliz of Bank Leumi led the team that structured the loan.