CHICAGO — Chicago-based Ventas Inc. has sold five senior housing assets to affiliates of Emeritus Corp. for an aggregate sale price of $62.5 million. The facilities, which are located in four states, house a total of 432 units. Prior to the sale, Emeritus was the operator of the five assets. The acquisition price represents a 6.7 percent capitalization rate on current annualized cash rent of $4.2 million. Ventas Inc. expects to record a gain of approximately $23 million on the sale. In addition to providing $10 million in seller financing for the transaction, the company was released from approximately $7 million of existing mortgage debt. The loan is guaranteed by Emeritus, and bears an interest at an average rate of 8.25 percent, which is payable monthly, and matures in 3 years. The company can accelerate the loan on the occurrence of various events. Emeritus remains a operator in 11 other senior housing properties owned by Ventas.
CONNEAUT, OHIO — Love Funding has processed one of the first applications under the LEAN loan program, HUD’s new healthcare program for acquisition, refinance, new construction and substantial rehabilitation loans. The LEAN program, which was formed to make the HUD 232 program process easier and more efficient, provides non-recourse assumable loans for new and existing assisted living, board and care, and intermediate or skilled nursing care facilities. Robert Smallwood of Love Funding’s Cleveland office used the LEAN processing to secure an approximately $6.51 million acquisition loan for Villa at the Lake, an assisted living facility located in Conneaut. Situated on an approximately 8.6-acre site, the 59,125-square-foot facility includes 90 single units and single-deluxe suites. Financing was based on a 6.4 percent fixed interest rate, with a 35-year amortization schedule. The loan marks the fourth deal that Love Funding has completed for Lawton, Mich.-based Randall Residence.
BOSTON — The grand reopening has been held for Casa Maria Apartments, an 85-unit apartment building located at 130 Endicott St. in the North End neighborhood of Boston, after an extensive rehabilitation. The six-story building was originally constructed by The Community Builders (TCB) in 1979 to provide Section 8 subsidized housing to seniors; the company continues to operate the facility. Construction included renovations to the existing community kitchen and the construction of a second kitchen; the addition of stand-up, walk-in showers in unit bathrooms; new energy-efficient appliances; an expansion to the lobby; new windows, heating systems and elevators; a new community room; and the construction of a handicap-accessible rooftop deck. TCB’s limited partner investors in the renovation were Red Capital Group and Nationwide Insurance Co. Additional assistance was provided by MassHousing and low-income tax credits provided by the Massachusetts Department of Housing & Community Development. The general contractor for the project was CWC Builders; Tise Design Associates served as project architect.
VIRGINIA BEACH, VA., AND WILMINGTON, N.C. — KeyBank Real Estate Capital has secured $18.3 million in loans for two Oakdale Heights senior housing properties. San Diego-based Pacifica Companies took out a $9.3 million loan for an 86-unit complex in Virginia Beach and a $9 million loan for an 87-unit property in Wilmington. Fannie Mae provided financing.
FLORIDA — Love Funding has secured $24.7 million in loans for two senior housing facilities in Tallahassee and Tarpon Springs, Fla. A $17 million loan was arranged for the 120-unit Heritage Oaks complex in Tallahassee at a 4.63 percent interest rate. The 92-unit Allegro at East Lake received a $7.7 million loan with a 5.19 percent interest rate. Both 7-year loans come with a 30-year amortization and were funded by Freddie Mac. Robyn Cunningham of Love’s St. Louis office secured the loans.
CHINO, CALIF. — The Los Angeles office of Holliday Fenoglio Fowler (HFF), on behalf of Komar Investments, has arranged an $11.2 million loan for the refinancing of Hillsborough Village in Chino. Located at 11902 Central Ave., the senior-housing community comprises three residential buildings with 100 one-bedroom units, 95 two-bedroom units and one three-bedroom unit. The property also features a clubhouse, pool and spa. The 6-year loan features a 5.82 percent fixed rate. The financing was provided by Wachovia Multifamily Capital, Inc. — FNMA.
PLANO, TEXAS — Dallas-based Andres Construction Services has completed construction for The Legacy at Willow Bend, a retirement community owned by The Legacy Senior Communities. The property features 103 independent-living apartment homes, 12 independent-living villas, 40 assisted-living apartment homes, 18 memory-support suites and 60 private-skilled healthcare suites. Amenities include a fitness center, an art studio, a salon and spa. The property is situated on 28 acres at Spring Creek Parkway between Preston Road and Ohio Drive.
BALTIMORE, MD. — KeyBank Real Estate Capital has provided a total of $53.7 million in financing for a portfolio of four Northeast senior housing properties. The borrower is Baltimore-based Capital Health Group. In the first part of the transaction, KeyBank provided $24.8 million through Fannie Mae’s DMBS program for Forge Hill Senior Living in Franklin and The Inn at Robbins Brook in Acton. The remainder of the proceeds, which were funded through KeyBank’s balance sheet, went toward the financing of The Inn at Spruce Wood in Durham and Village at Fillmore Pond in Bennington. Terms of the loans were not disclosed.
PHOENIX — Boston-based Boston Capital has invested in Amber Pointe Apartments, a to-be-built, affordable senior-living project in Phoenix. Located south of downtown Phoenix, the property will feature 32 one-bedroom/one-bath units and 24 two-bedroom/two-bath garden-style units in a three-story building. The units are restricted to residents aged 62 or older with incomes at or below 40 and 50 percent of the area median income. The community will feature a community center, a computer room, laundry facilities and an intercom entry system. Boston Capital provided the tax credit equity for the development; Boston Capital Finance provided a $7 million construction loan and $1.1 million permanent loan. The general partner is Ohio-based NRP Group LLC.
CHICAGO — Harley Ellis Devereaux is providing planning and architectural services for two affordable senior living facilities currently underway in Chicago. The G&A Senior Residence of Eastgate Village, which is located at 300 E. 26th St., has topped out construction at nine stories. Situated adjacent to Mercy Hospital, The G&A Senior Residence of Eastgate Village will consist of 117 one-bedroom units. Amenities at the property include a fitness center, a multi-purpose room with a common use kitchen, and a ninth-floor residence lounge and terrace with lakefront views. G&A Construction and Development is developing the building; Fred Teitelbaum Co. is the general contractor for the project. The project is slated for completion in May. Located at 3251 E. 92nd St., The Victory Centre of South Chicago has topped out construction at five stories. The $17.9 million affordable supportive living community will house 112 studio units, each with a private bathroom and kitchenette. The project, which was designed to achieve LEED Certification, has been approved for certification by the Illinois Department of Healthcare and Family Services Medicare Waiver Program. Pathway Senior Living is developing the property; Pepper Construction is providing general contracting services. The project is scheduled for completion in the spring.