TOLEDO, OHIO — Toledo-based Health Care REIT has terminated its previously announced agreement with an affiliate of Arcapita Inc. to acquire 90 percent interest in a 29-property senior housing portfolio managed by Sunrise Senior Living Inc. The properties are located mainly in the New York, Los Angeles and Chicago metropolitan areas. Given the uncertainty in the capital markets, Health Care REIT has decided not to move forward in negotiations.
Seniors Housing
ORLANDO, FLA. —St. Petersburg, Fla.-based Bessolo Design Group has begun designing a renovation to the seven-story Baldwin Park Retirement Center that will create 120 studio and one-bedroom units. The expansion includes 6,000 square feet of staff support areas, a new elevator system and 18 Alzheimer units. A 30,000-square-foot office is also included in the design.
NORCROSS, GA. — Scott Kavel of Grandbridge Real Estate Capital’s Norcross office has helped an undisclosed real estate investment trust secure $318.5 million to fund a seniors housing credit facility. The 16-loan facility, which includes six properties in Florida and one property in Tennessee, can be expanded to $350 million. Kavel broke the loan into two lease pools and sold it to Fannie Mae. Lease Pool One carries an 8-year term with a mid-6 percent interest rate, and the second lease pool has a 5-year term and a low-6 percent interest rate. Both lease pools carry 30-year amortizations.
TEMPLE, SAN ANTONIO AND ABILENE, TEXAS — Mission Viejo, Calif.-based The Ensign Group, the parent company of the Ensign brand of senior care facilities, has acquired four Ensign skilled nursing facilities for $10.4 million. Three of the properties are located in Texas; they include the 140-bed Wellington Place Living & Rehabilitation Center in Temple, the 120-bed Salado Creek Living & Rehabilitation Center in San Antonio and the 96-bed Northern Oaks Living & Rehabilitation Center in Abilene. The fourth property is a 70-bed, skilled nursing facility located in Willits, Calif. The properties were acquired from the seller, a long-time Ensign landlord, by four separate Ensign holding subsidiaries. Ensign operating subsidiaries previously have been operating the facilities, and will continue to operate them under new long-term leases with the acquisition entities. Proceeds from Ensign’s recent initial public offering were used to complete the purchase.
RACINE, WIS. — The Commercial & Investment Division of Milwaukee-based Ogden & Co. has brokered the sale of a 71-unit assisted living facility located at 5737 Erie St. in Racine. John and Richard Coury of Elizabeth Residence and Ramsey Woods Residence, respectively, have acquired the property from Villa St. Anna Inc., a subsidiary of Franciscan Ministries Inc. The property is situated within the Wind Point area of the Village of Caledonia. The new owners, which have plans to operate a 50-unit community-based residential facility at the property, will renovate the existing building, enlarging the units, adding full bathrooms and expanding the living area. Additionally, the new owners have plans to construct a 24-unit residential care apartment complex at the approximately 4-acre site. Dave Nance of Ogden & Co. represented the seller; James Ried represented the buyer in the transaction. The acquisition price was not disclosed.
HILTON, N.Y. — The Rose Hill Group of Western New York (RHG) has arranged an $8 million bridge loan for Hilton East Assisted Living, a 175-bed senior housing facility located in Hilton. The property had a more than 90 percent occupancy rate at the time of closing. Thomas Grzebinski of RHG arranged the loan on behalf of the Rochester, N.Y.-based borrower through a regional bank. Terms of the financing were not disclosed.
PORT CHARLOTTE, FLA. —Marcus and Millichap has represented an undisclosed LLC in the sale of the 24,490-square-foot Courtyards of Horizon to a Port Charlotte-based doctor for $2.9 million. The senior housing facility, located at 2644 Rampart Blvd. in Port Charlotte, opened in 1989 and is licensed for 50 beds. The property was renovated in 2005 to fix damage brought on by Hurricane Charlie.
DEKALB, ILL. — Cambridge Realty Capital Cos. has provided a $6.5 million FHA-insured first mortgage loan for Pine Acres Care Center, a 119-bed skilled nursing home facility located at 1212 S. 2nd St. in Dekalb. The loan will be used to refinance the property and fund a 5,075-square-foot addition. The fully-amortized, 40-year HUD Section 232 healthcare loan was arranged for the company’s owner, an Illinois limited liability company, by Cambridge Realty Capital of Illinois. The interest rate was not disclosed.
LONG BEACH, CALIF. — Long Beach-based HCP Inc., a real estate investment trust, has placed $319 million of secured financing for 16 of the company’s senior-housing assets. The company placed $140 million of 5-year secured debt on four assets and $179 million of 8-year secured debt on 12 assets. The properties are cross collateralized and the debt has a weighted average interest rate of 6.39 percent. The debt was purchased by Fannie Mae. As of June 30, 2008, HCP’s portfolio of properties totaled 706 properties — 267 senior housing, 107 life science, 256 medical office, 25 hospital and 51 skilled nursing.
NEOSHO, MO. — Rosemann & Associates, as architect and interior designer, has completed the historic renovation of Newton Place Apartments, an independent senior living community located in downtown Neosho. With four stories and more than 13,000 square feet, Newton Place houses 11 one-bedroom units and four two-bedroom units. The building, which once housed the Newton Hotel, is similar in style to a boutique hotel. Amenities at the property include a first-floor community room, a computer lab, a secured outdoor patio and common areas for group activities. Other companies involved in the project included the City of Neosho, the Missouri Housing Development Commission, Fairway Construction Co., Straub Construction, Bob D. Campbell & Co. and PKMR Engineers.