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RED Capital to Grow After ORIX Goes All-In

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A major senior housing lender says it’s poised for growth following a fresh investment from its parent company.

RED Capital Group, LLC is now wholly owned by Dallas-based ORIX USA Corporation, whose ownership of RED officially grew from 88% to 100% on Feb. 22.

ORIX, which offers investment capital and asset management services to clients in the corporate, real estate, municipal and energy sectors, originally invested in RED in 2010. RED has been one of ORIX’s subsidiaries ever since.

“Increasing ORIX’s investment in RED has been a strategic objective of mine for the last few years, as I have seen firsthand the strength of the RED team and their platform,” ORIX USA Chairman, President and CEO Hideto Nishitani said in a prepared statement. “This is an attractive investment opportunity and signals ORIX’s belief in the strength of the multifamily, seniors housing and affordable housing markets.”

Despite the shift in ownership, RED’s executive management team will remain in Columbus, Ohio, and continue to operate RED as an independent entity.

“With this investment, RED is well-positioned for strategic growth,” Ted Meylor, chairman and CEO of RED, said. This transaction—combined with the creation of the Freddie Mac Small Balance Loan Seller/Servicer program, as well as the addition of multiple high-performing originators to the company—has given RED momentum as it looks to push to the next level in its industry, he added.

RED’s Freddie Mac Small Balance Loan Seller/Servicer program provides custom debt solutions for the refinancing or acquisition of smaller properties with a minimum of five residential units. Small balance multifamily loans involve loan amounts between $1 million and $5 million, and RED’s program offers hybrid or fixed-rate ARM financing with full-term or part-term interest-only option with streamlined documentation processing and underwriting.

RED recently beefed up its team of originators for the multifamily program, bringing the total count to four: Lee Harris, Cynthia Goodenough, David A. Burt and Don Frankman, the head of Small Balance Multifamily Loan (SBL) Originations. The team closed and funded more than $55 million in loan volume in the fourth quarter of 2015.

Written by Mary Kate Nelson

The post RED Capital to Grow After ORIX Goes All-In appeared first on Senior Housing News.


Movers & Shakers: Capital One’s SVP, Chief Underwriter

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Capital One Appoints SVP, Chief Underwriter for Multifamily Finance

Capital One announced the appointment of Cortney Mauldin as senior vice president and chief underwriter for multifamily finance.

In this role, Mauldin will be responsible for the oversight and quality control of all underwriting functions related to Federal Housing Administration (FHA) insured transactions, including health care and senior housing FHA multi-family. Before joining Capital One, Mauldin was senior vice president and chief underwriter at the Love Funding Corporation, where he managed the development training and work product of the underwriting team while maintaining relationships with members of the U.S. Department of Housing and Urban Development (HUD) headquarters, Multifamily and LEAN staff.

“Cortney brings significant depth of industry experience and knowledge to Capital One’s commercial real estate business,” Jeff Lee, senior vice president of Capital One Multifamily Finance, said in a statement. “We are confident he will effectively lead the team as we continue to support significant FHA loan volume. As we integrate our new health care platform, we are expanding our underwriting capabilities and elevating the talent level of the team.”

Senior Quality Lifestyle Corporation Names New Leader, Resident as Board Member

Dallas-based senior living community developer Senior Quality Lifestyles Corporation (SQLC) named Stan Waterhouse as the company’s president and CEO. Joe Anderson, SQLC’s Chairman of the Board, made the announcement.

Prior to this appointment, Waterhouse served as Vice Chairman of the Board. He was also COO for the Housing Authority of the City of El Paso where he managed an annual budget of $100 million; vice president for The Ritz-Carlton Company where he spearheaded company expansion to include resorts, private residence clubs, lifestyle communities and golf assets throughout Asia, the U.S. and the Caribbean; and regional vice president for Club Corporation of America, the world’s largest club operator where he was responsible for 25 properties.

“Stan brings to this role extensive management experience in senior housing and hospitality—an ideal portfolio as the board seeks to heighten performance in customer service, operations and finances,” Anderson said in a statement. “Our vision is to be the community of choice in all markets we serve, and Stan’s expertise will help us fulfill that mission.”

SQLC also elected Dr. Jan van Sant as the newest member of its Board of Directors. He is president of the resident council at The Buckingham in Houston, and the first resident to hold a full voting membership on the SQLC board.

Dr. van Sant is a 34-year oil industry veteran, beginning his career with Jersey Production Research Company, an Exxon Corporation predecessor, in 1962. He served in various capacities with Exxon until joining Pennzoil in 1980, retiring as senior vice president of technology and systems in 1996. After retiring, Dr. van Sant was the executive director of the American Geological Institute Foundation.

“SQLC has entered into lifetime contracts with its residents who have a right to participate in the governance process that affects their daily lives and the financial performance of the communities in which they live,” Anderson said. “We are delighted to welcome Dr. van Sant to the board and look forward to his input and contributions.”

RED Capital Group Adds Chief Underwriter of Small Balance Loans

RED Capital Group, LLC added Patrick Graffagnino as chief underwriter of small balance loans.

Graffagnino will coordinate all Freddie Mac and Fannie Mae small loan underwriting activities in this new role by evaluating loan requests, assessing key areas of risk in conformance with small loan credit standards and program requirements. Before joining RED, he was a director and deputy chief underwriter with Greystone Servicing Corporation, managing a team of underwriters and analysts, closing loans across various Fannie Mae and Freddie Mac market rate and affordable loan products.

“We are extremely excited to have Patrick join us,” RED Chief Credit Officer Todd Rodenberg said in a statement. “He has broad real estate lending experience and tremendous depth of knowledge in the small loan space. I am confident he will be a strong catalyst to assist us in achieving our aggressive growth plans and will lead the group to become one of the top producers of high quality small loans throughout the country.”

Mainstreet Unveils Latest Round of New Hires

In the month of March, Mainstreet, the nation’s largest developer of transitional care properties, made nine additions to its team.

Erik Hansen is the new chief compliance officer and broker dealer at Mainstreet. He previously served at OneAmerica Financial Partners, Inc. as an assistant general counsel and Bracewell LLP as an associate attorney.

Amanda Good joined Mainstreet as an executive assistant after working at Sandor Development Company. Lynda Huff also joins the company as an executive assistant, with previous experience including time at Regions and Fifth Third Bank.

Kelly Henderson is Mainstreet’s new director of marketing. She most recently served as the director of marketing and digital services at Koorsen Fire & Security, where she established and developed the marketing and digital program within the company.

Paul Madden comes to Mainstreet as the new construction manager. Before the appointment, he worked at Firestone Building Products, where he served in roles such as accounts manager, national technical manager and training services manager.

The new design manager at Mainstreet is Toby Miller. He has been a senior CAD operator at Simon Property Group, where he managed all drawing of lease and development plans for more than 20 properties nationwide.

Sonja Nelson has been named the new vice president of strategy and business development in Arizona for Mainstreet Health. She comes to Mainstreet with more than 20 years of experience, most recently as the director of strategy and planning for Banner Health.

Elizabeth Racine is the new vice president of clinical operations in Texas for Mainstreet Health. She worked at Harden/TRISUN Healthcare previously, where she was also vice president of clinical operations. Her experience includes regional nurse consultant, director of nursing and wound care consultant.

Finally, Mary Ringis joins Mainstreet as the new asset manager. She joins Mainstreet with over 20 years of property management experience. She previously served as a general manager at Seller Realty, where she was responsible for overseeing the property management team in the Indianapolis area.

SB&A Integrated Marketing, Brooks Adams Research Selects New Business Growth Director

SB&A Integrated Marketing and Brooks Adams Research welcomes Rhonda Stewart as director of business growth and development.

Previously, Stewart served as executive director of The Village at Woods Edge, a senior living community where occupancy increased from 78% to 96% within 18 months under her tenure. Operating revenue doubled during her time in this role, as well, and she spearheaded a $2.2 million capital campaign for facility-wide renovations and improvements.

In her new role, Stewart will be a senior-level consultant on higher levels of care and operational program development and will be involved in management and strategy.

SB&A Integrated Marketing is a marketing firm that focuses on services for senior living providers. Brooks Adams Research conducts market and consumer research.

Presbyterian Homes Appoints New VP of Information Technology

Presbyterian Homes appointed Danny Weinberger as the company’s new vice president of information technology. He will be tasked with coordinating Presbyterian Homes’ efforts to evaluate and test emerging technology that is useful to older adults and serve on the organization’s corporate leadership committee.

Weinberger most recently served as manager of infrastructure services for Presbyterian Homes, where he contributed to elevating technology services throughout the organization for both residents and staff. He also has experience in managing the help desk, data center and network/security operations, budgeting and the infrastructure for team members. Before joining Presbyterian Homes, Weinberger was manager of information technology at CJE SeniorLife, a Chicago-area network that assists older adults and their families.

“Danny will be an excellent steward of our IT initiative,” Presbyterian Homes COO Nadim Abi-Antoun said in a statement. “Under his leadership, I am confident that the organization is well-positioned to meet the technology needs of current residents while anticipating the needs of future ones.”

Emerald Heights Announces New Executive Director

Emerald Heights, a nonprofit continuing care retirement community located in Redmond, Washington, named Grant Linacre as its executive director. He has served as interim executive director since October.

In the role, Linacre is tasked with overseeing day-to-day operations at Emerald Heights, focusing primarily on finalizing plans for the addition of a new assisted living building and the future repositioning of semi-private skilled nursing beds to private rooms.

Before joining the team at Emerald Heights, Linacre served in various roles with Life Care Services, most recently as executive director of Greenwood Village South, a CCRC in Greenwood, Indiana. He was also the administrator at Issaquah’s Timber Ridge at Talus and North Oaks Retirement Community in Baltimore.

“I am very excited about being a part of the future of Emerald Heights and helping to ensure that its long tradition of excellence continues,” Linacre said in a statement.

Written by Kourtney Liepelt

The post Movers & Shakers: Capital One’s SVP, Chief Underwriter appeared first on Senior Housing News.

Movers & Shakers: New Senior’s Chief Accounting Officer

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New Senior Investment Group Appoints Chief Accounting Officer

New Senior Investment Group (NYSE: SNR) appointed Bhairav Patel as the company’s chief accounting officer, effective March 30.

Patel is a managing director in the private equity group of the company’s manager, FIG LLC, which is an affiliate of Fortress Investment Group LLC. Patel joined Fortress in 2007, serving in various positions in the corporate accounting and finance divisions. Most recently, he was the head of the Fortress financial planning and management group. Before joining Fortress, Patel was an accounting manager at GSC Group, a credit-based alternative investment manager.

Blueprint Announces New Managing Director at Washington, D.C. Office

Blueprint Healthcare Real Estate Advisors announced the addition of Adam Sherman as managing director in its Washington, D.C. office.

Sherman joins Blueprint with 15 years of experience in seniors housing and medical office real estate. He has served in leadership, business development, underwriting and portfolio management roles with GE Capital and CIT Healthcare. Most recently, he was managing director at RED Capital Group, focus on delivering bridge, construction, mezzanine and permanent loans to seniors housing owners across the country.

In his new role at Blueprint, Sherman will help to further the objective of building the firm and its mission of providing options and maximizing value for its clients. He will assist in navigating unique challenges facing investors and operators.

Blueprint is an advisory firm focused exclusively on senior housing and health care real estate. The firm has closed more than 50 seniors housing real estate transactions that together are greater than $1 billion in volume since 2013.

Bayshore Memory Care Names New Executive, Health Services Directors

Bayshore Memory Care named Alisha Pratt as the community’s new executive director and Minnie Johns as director of health services. The new residential community in Naples, Florida is dedicated to comprehensive memory care and assisted living.

Pratt joins the Bayshore Memory Care team with more than 10 years of experience in senior living, including executive director and resident care director. She will be responsible for managing operations at Bayshore Memory Care.

Johns comes to Bayshore Memory Care with over 12 years of experience in health care, such as director of health and wellness for a national senior living community.

The community will rollout the Heartfelt CONNECTIONS memory care program, developed by Life Care Services, a manager of full-service senior living communities. Pratt and Johns will help in the program’s implementation.

LCB Senior Living Promotes Danielle Breton to Chief Investment Officer

Norwood, Massachusetts-based LCB Senior Living, LLC announced the promotion of Danielle Breton to chief investment officer. Breton has been with LCB for three years and previously served as LCB’s director of investments. In her new role, she will have direct oversight of all of LCB’s business financing and development. She will also take on the role of chairperson of the investment committee.  

LCB, which was founded in 2010, specializes in independent living, assisted living and memory care. The company currently has 16 properties owned or under management contract in four New England states, and an additional five in various stages of construction. 

Kiplinger’s Retirement Report Gets a New Editor

Rachel Sheedy has been named editor of Kiplinger’s Retirement Report, the monthly, 90,000 circulation publication for affluent subscribers planning for and living financially secure lives in retirement. Sheedy, who has served as managing editor of the publication since 2008, replaces Susan Garland, who retired after 10 years as editor.

As editor, Sheedy will continue to write for the Retirement Report, while also overseeing staff and freelance contributors.

Written by Kourtney Liepelt and Mary Kate Nelson

The post Movers & Shakers: New Senior’s Chief Accounting Officer appeared first on Senior Housing News.

Movers & Shakers: Ventas Appoints Presiding Director

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Ventas Appoints New Presiding Director

The board of directors of Ventas, Inc. (NYSE: VTR) appointed James D. (“Denny”) Shelton to serve as the real estate investment trust’s (REIT) independent presiding director.

“An independent and strong lead director is a key component of our commitment to effective corporate governance,” Ventas Chairman and CEO Debra A. Cafaro said in a statement. “Denny Shelton has gained the respect and confidence of our full board since he joined us in 2008, and he will bring his leadership skills and success in the health care arena, honed in his highly successful roles as chairman of Omnicare and Triad Hospitals, to Ventas.”

As presiding director, Shelton will chair executive sessions of the board and act as a liaison between independent members and Ventas management. He is currently chair of the board’s nominating and corporate governance committee and executive committee, and he is also a director of Envision (NYSE: EVHC), a health care services company. Previously, he served as non-executive chairman of the board of Omnicare, Inc. until it was acquired by CVS Health Corporation in August 2015; as CEO and chairman of the board of Triad Hospitals, Inc., an owner and manager of hospitals and ambulatory services, until it was acquired by Community Health Systems in July 2007; and as a member on the boards of the Federation of American Hospitals and the American Hospitals Association.

Shelton replaces Douglas Crocker II, who served as independent presiding director for 13 years and has retired from the board in conjunction with Ventas’ retirement policy.

“Doug Crocker served as Ventas’ independent lead director for 13 years and as a director since the company’s inception in 1998,” Cafaro said. “Under his stewardship, Ventas has achieved and sustained excellence, and our shareholders, board and management team have benefited from Doug’s extraordinary commitment, judgment, integrity and experience.”

Ventas also announced the reappointment of Cafaro to serve as the company’s chairman of the board.

RED Capital Group Managing Director Elected as President of Ohio Housing Council

RED Capital Group announced the election of Tracy Peters, senior managing director of affordable housing for RED, as the 2016-17 president of the Ohio Housing Council.

Peters has been vice president on the board for two years, and also served as chairman of the Ohio Housing Council program committee for four years. He brings several years of experience in affordable housing to the his new role, including work as the mortgage banker and bond underwriter on different types of affordable housing transactions.

The Ohio Housing Council seeks to help professionals involved in all aspects of the affordable housing industry increase their participation in public policy debates and direct propose regulatory requirements that could affect the affordable housing industry in Ohio.

“As a long-term member of the Ohio Housing Council, I have seen first-hand the educational and advocacy work of the Council and the benefits of being a member and serving on the board,” Peters said in a statement. “I am very excited to lead the group as president and work with the executive team, board and members to continue to find was for the Council to be most effective for the affordable housing community.”

Integral Senior Living’s CEO Appointed to Argentum Board

Carlsbad, California-based senior living management company Integral Senior Living (ISL) reported that CEO/COO Collette Valentine was named to the board of Argentum. Her three-year term began in May.

Valentine has been CEO/COO of ISL since 2014, and she joined the company in 2010 as vice president of operations and marketing. In 2012, she was promoted to COO. Before her time at ISL, she  was regional vice president of operations at Atria Senior Living, and she held a variety of other positions throughout her eight-year tenure there.

“Argentum is pleased to have board members of such a high caliber as Integral Senior Living CEO/COO Collette Valentine,” Argentum President and CEO James Balda said in a statement. “We welcome her expertise and insight as a leader in Argentum’s efforts to increase innovation throughout the senior living industry.”

Seabrook Names Director of General Services

Seabrook, one of 18 continuing care retirement communities (CCRCs) managed by Erickson Living, named Robert Jones as director of general services.

Jones will oversee all aspects of the general services department at Seabrook and direct daily activities. He brings more than 25 year of management experience specific to project administration, energy management, housekeeping, maintenance, grounds and security to his new role. Most recently, he was district manager for Aramark in higher education in the east region.

“We are excited to welcome Bob to our leadership team at Seabrook,” Executive Director Todd DeLaney said in a statement. “His strong experience and passionate leadership will be essential as we continue to enhance the lifestyle and experience that Seabrook provides our community, staff and residents.”

Seabrook’s 98-acre campus is located in Tinton Falls, New Jersey and house more than 1,400 residents.

Fox Hills Welcomes New Dining Room Manager

Fox Hill retirement community in Bethesda, Maryland welcomed Jagath Chandradasa as its dining room manager.

Chandradasa is responsible for overseeing day-to-day dining operations and managing culinary functions in all of Fox Hill’s five dining venues. He is a native of Sri Lanka, and has been working at the community since it opened in 2008. He brings an in-depth knowledge of South Indianan, Bombay style cuisine and Chinese and Indonesian cooking.

“Jagath has worked on the culinary team at Fox Hill from the beginning and is well acquainted with many of the owner/residents and understands their appreciation of variety and a rich dining experience,” Julie Sabag, Fox Hill’s director of marketing, said in a statement.

Fox Hill is a gated residence for those aged 60 or older and offers independent living condominium ownership, as well as access to assisted living and memory care. In celebration of Chandradasa’s appointment, Fox Hill will host a “Bombay Meets Colombo Indian and Sri Lankan Buffet” for its monthly international night.

New Jewish Home Announces Several Executive Appointments

The New Jewish Home, a nonprofit geriatric health and rehabilitation system, announced several appointments at the executive level and its Westchester campus, the Sarah Neuman Center in Mamaroneck, New York. The appointments include Jacob Victory as COO; Elliot Hagler as CFO; Gabrielle Genauer as vice president of general counsel; and Sandra Mundy has administrator of Sarah Neuman.

Victory will be responsible for the oversight of three major areas of operation that together serve 10,000 New York elders: the community services division that includes a certified home health agency and a telemedicine unit; two nursing homes in Manhattan and Westchester; and four Bronx residences for low-income elders. He comes to The New Jewish Home from Health Republic of New York, where he was senior vice president of strategy.

Hagler will be responsible for finance, information technology and materials management. Before joining Jewish Home, he spent more than 10 years at Lighthouse Guild International, most recently as executive vice president and CFO.

Genauer will be tasked with all legal affairs, including compliance. She previously worked for the Wall Street law firm of Hughes Hubbard & Reed, LLP, where she spent nearly 10 years counseling clients on litigation strategy, risk management and compliance.

Mundy will run the Sarah Neuman Center as administrator, overseeing the 300-bed facility that encompasses short-term rehabilitation, long-term nursing and a day center. She previously spent two years as associate administrator of the Bronx campus.

Additionally, Olivia Babol-Ibe has been named director of nursing at Sarah Neuman and Christina Giarratano joins Sarah Neuman as director of social work.

The Cardinal at North Hills Hires Executive Director

The Cardinal at North Hills, Kisco Senior Living’s newest community in Raleigh, North Carolina, hired Tom Ford as executive director.

Previously, Ford managed Kisco’s two largest Raleigh-area communities over the past 14 years. He currently works at Magnolia Glen, and prior to that, he was executive director at Woodland Terrace in Cary. He has spent the last 25 years working in senior living and health care.

“An important part of our culture is tor provide growth and career advancement for key leaders like Tom,” Kisco President and CEO Andy Kohlberg said in a statement. “He has earned the respect of our residents and his fellow associates over 14 years of successful leadership, and I am confident that he will continue to provide this caliber of service and quality in his new role at The Cardinal.”

Kisco owns and operates 22 senior living communities in seven states. The Cardinal is a continuing care senior living campus.

Written by Kourtney Liepelt

The post Movers & Shakers: Ventas Appoints Presiding Director appeared first on Senior Housing News.

Senior Housing Finance Activity: Ziegler, Lancaster Pollard

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Lancaster Pollard Secures $7 Million Refinancing for New York Assisted Living Community

Lancaster Pollard recently assisted The Lake Shore Assisted Living Home, a 200-unit assisted living community in Lake Ronkonkoma, New York, with a $7 million refinance utilizing the FHA Sec. 232/223(f) program.

The Lake Shore Assisted Living Home was searching for a more beneficial long-term debt solution than the full-recourse, variable-rate loan it previously had with a bank, Lancaster Pollard said in a press release. So, Lancaster Pollard obtained a Sec. 232/223(f)-insured loan that is non-recourse, featuring a 30-year term and a low, fixed interest rate. Additionally, the community set aside a large initial deposit to its replacement reserves while still maintaining a low loan-to-value, enabling it to reduce its yearly contribution and improve its cash flow and debt service coverage.

Senior Managing Director Ken Gould led the transaction for Lancaster Pollard.

Ziegler Closes $42.14 Million Friendsview Manor Financing

Chicago-based specialty investment bank Ziegler announced the closing of the $42.14 million, un-rated, fixed-rate Series 2016 Bond issue for Oregon-based not-for-profit corporation Friendsview Manor, d/b/a Friendsview Retirement Community, a client new to Ziegler.

Friendsview, a registered, Type A life plan community, has two campuses located in Newberg, Oregon. In total, Friendsview operates 317 homes, including 239 entry-fee independent living homes, 31 residential care apartments, 29 residential care health beds and 18 residential care memory beds.

Proceeds of the 2016 Bonds will be utilized to (i) refund all of the outstanding principal amount of the $23.4 million Series 2014A (Tax-Exempt) Bonds; (ii) refund all of the outstanding principal amount of the $880,000 Series 2014B (Federally Taxable) Bonds; (iii) fund swap termination payments; (iv) finance the development and construction of a 38-unit independent living expansion project known as University Village to be located adjacent to Friendsview’s main campus in Newberg, Oregon; (v) refinance specific taxable bank indebtedness of the corporation outstanding in the amount of about $700,000; (vi) fund a debt service reserve fund for the benefit of the Bonds; and (viii) pay specific costs of issuance of the Bonds.

“Ultimately, 28 funds participated in the offering, helping drive the bond yield below 4%—the lowest we have ever seen for a senior living transaction of this type,” Sarkis Garabedian, senior vice president in Ziegler’s senior living practice, said in a press release.

CBRE Secures $60 Million Loan for Capitol Senior Housing, The Carlyle Group Joint Venture

CBRE National Senior Housing Vice Chairman Aron Will arranged acquisition financing on behalf of a joint venture between The Carlyle Group and Capitol Seniors Housing for a portfolio of four purpose-built senior housing communities located in markets in the Seattle metropolitan statistical area.

Of the portfolio’s 368 total units, 91 are independent living units and 277 are independent/assisted living. After the aquisition, the portfolio is expected to be managed by MBK Senior Living.

Specifically, CBRE secured a $60+ million, non-recourse floating rate loan which has a five-year term with 36 months of interest only. Total loan proceeds include a loan of $51.9 million for the acquisition of the property, as well as a loan of $8-plus million for planned capital improvements. The borrower’s business plan includes the deployment of capital expenduture funds to be spent upgrading units and the renovation of all finishes in common areas, CBRE said in a press release.

Capitol Seniors Housing is a 13-year-old senior housing investment company that currently owns 19 properties with 2,015 total units. Washington, D.C.-based Carlyle is a global alternative asset manager that currently owns and operates 6,700 senior housing units across 38 senior housing assets.

West Coast-based MBK currently operates 18 senior housing properties located in California, Arizona, Colorado, Washington and Utah. MBK also has a strong geographic footprint in the Pacific Northwest, with seven other assets under management.

Ziegler Closes $64.42 Million Baptist Life Communities Financing

Ziegler, a Chicago-based specialty investment bank, announced the successful closing of the $64.42 million, tax-exempt, non-rated Series 2016A&B financing for Kentucky-based Baptist Life Communities, a client new to Ziegler.

Baptist Convalescent Center, Inc., d/b/a Baptist Life Communities, currently owns and operates three senior living campuses: Baptist Convalescent Center of Newport in Newport, Kentucky, which has 167 skilled nursing beds and 30 personal care units; Baptist Village in Erlanger, Kentucky, which has 80 independent living units and 100 skilled nursing beds; and Griesser Farm in Burlington, Kentucky, which has 12 independent living units.

Baptist Life Communities plans to replace the Baptist Convalescent Center (BCC) with a new community called The Seasons at Alexandria in Alexandria, Kentucky, to be built about eight miles south of the current campus.

In Alexandria, certificate of need (CON) licenses for 117 skilled nursing beds will be provided by transferring existing bed licenses from Baptist Convalescent Center. Then, after the Alexandria campus opens and the 117 beds are transferred, Baptist Convalescent Center will “wind down” and the property will be sold, Ziegler said in a press release. CONs for 30 of the proposed 66 personal care beds in Alexandria have already been secured by Baptist Life Communities. Additionally, the Commonwealth of Kentucky has approved the CON for the extra 36 personal care units.

Phase II to the development of The Seasons at Alexandria is anticipated to include 60 independent living units, as well as associated amenity spaces.

The Series 2016A and Series 2016B Bonds were issued to (i) finance project costs and reimburse borrower of costs incurred associated with the Alexandria Project, (ii) refinance $4.58 million of existing debt outstanding, (iii) reimburse $515,000 of eligible capital expenditures incurred, (iv) fund $1.89 million of cash requirements after opening (v) fund a Liquidity Support Fund of $1 million (vi) fund a debt service reserve fund for the Series 2016 Bonds, (vii) pay for funded interest on the new money portion of the Series 2016A bonds and for all of the Series 2016B bonds for 24 months, and (viii) pay the costs of issuance. The corporation contributed $3 million of equity related to the project, Ziegler said.

The Series 2016A Tax-Exempt Fixed Rate Bonds have a par amount of $61.38 million made up of $4.34 million of refunding and $57.04 million of new money. The Series 2016B Taxable Fixed Rate Bonds have a par amount of $3.04 million. The new money and refunding components are amortized together to form level debt service. The Series 2016A Bonds amortize over 35.5 years until 2051 with a double payment in 2051 partially funded with the release of the debt service reserve fund. The Series 2016B Bonds have a final maturity in 2023.

RED Capital Closes $12.7 Million Acquisition Loan for Birchwood Health Care Properties

The proprietary debt and equity banking arm of comprehensive capital provider RED Capital Group, LLC—RED Capital Partners, LLC—completed a $12.7 million balance sheet acquisition loan on behalf of Chicago-based Birchwood Health Care Properties for the purchase of four skilled nursing facilities in Oklahoma.

The Oklahoma portfolio includes four skilled nursing facilities located in Muskogee, Oklahoma, and McAlester, Oklahoma, with 361 beds in total. Transition Health Services is expected to operate the facilities, as well as their ancillary businesses.

For this transaction, RED obtained a high-leverage bridge-to-HUD loan. A mezzanine lender provided additional proceeds used towards the acquisition of the facilities, as well as a hospice care and home health company in an associated transaction. These ancillary businesses provided credit support for RED’s acquisition loan, as well.

Under Birchwood’s ownership, the facilities are expected to undergo changes that will enhance patient care and enable them to address the community’s pressing need for facilities servicing a higher acuity population, RED Capital said in a press release.

United Community Bank Adds Senior Care Lending Group

Blairsville, Georgia-based United Community Bank (Nasdaq: UCBI) is adding to its Specialized Lending division with the creation of an experienced team specializing in financing senior care facilities, including skilled nursing facilities, assisted living communities and memory care communities. The four-person team will be based in Birmingham, Alabama, and will work throughout the Southeast, providing loans and lending expertise to senior housing operators aiming to build, renovate or expand senior living communities.

Jennifer Lawley, a five-year veteran of senior care lending, will lead the new team. Senior Care Relationship Manager Dennis Rowlen is set to assist Lawley. Additionally, Caroline Meyer joined the team as senior care portfolio manager, and Nancy Grizzard joined the team as a senior living loan assistant.

“We are particularly pleased to add this team and their capabilities to our specialized lending operation,” Charles Chamberlain, United Community Bank’s director of corporate banking, said in a press release. “Our footprint represents a desirable retirement region and we have found these types of transactions to be much more complex than other types of project financing. Having a dedicated team with this specific industry knowledge will allow United Community Bank to become a very competitive force within this sector.”

Written by Mary Kate Nelson

The post Senior Housing Finance Activity: Ziegler, Lancaster Pollard appeared first on Senior Housing News.

Senior Housing Finance Activity: RED Capital, CBRE

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RED Closes $20 Million Balance Sheet Construction Loan for Creekside Senior Living

RED Capital Partners, LLC recently completed a $20 million Balance Sheet construction loan for the development of Creekside Senior Living, a Class A assisted living and memory care community with 129 units in Bountiful, Utah.

Specifically, the loan was completed for Creekside Senior Living at Bountiful LLC, a joint venture between Stellar Senior Living, Creekside Senior Living Development Group, LLC, US Development, Inc. and the John S. Smith Family of Bountiful, Utah. The community will be operated by Stellar Senior Living, a family-owned company based in Salt Lake City, Utah, which operates senior living communities throughout Utah, Colorado, Idaho, Arizona and Washington.

“We are proud to have played a part in the realization of a unique community legacy and the coming together of a very remarkable project,” Brady Johnson, the director of senior housing and health care at RED, said in a press release. “The Mountain West is a unique focus for us and we are excited to strengthen our ties here in Utah. We also look forward to building on our relationship with Stellar Senior Living and are sincerely pleased they chose RED.”’

RED Capital Partners, LLC is the proprietary debt and equity banking arm of comprehensive capital provider RED Capital Group, LLC, itself a subsidiary of Dallas-based capital and asset management firm ORIX USA Corp.

CBRE Arranges Refinancing for Senior Living Community in Ohio

CBRE National Senior Housing Vice Chairman Aron Will arranged a refinancing on behalf of a joint venture between The Freshwater Group/Watermark Retirement Communities and NorthStar Healthcare Income, Inc. for Pinebrook Retirement Living, a 124-unit, Class A independent and assisted living community in Milford, Ohio.

Specifically, CBRE secured a 10-year floating rate CME loan from Freddie Mac which features 60 months of interest only. Watermark will continue to manage the community.

Watermark is a TFG portfolio company that manages and operates its senior housing assets, which currently consist of 38 communities across 20 states with approximately 7,000 beds.

NorthStar is a non-traded public real estate investment trust (REIT) that was created to originate, acquire and asset manage debt and equity investments in health care real estate. 

KeyBank Provides $249 Million in Financing to Formation Capital for SNF Portfolio

KeyBank Real Estate Capital, a subsidiary of Cleveland-based KeyCorp, has provided $249 million in FHA financing to Formation Capital, a private investment management company with a seniors housing concentration.  

KeyBank’s Healthcare Mortgage Group’s Paul Di Vito and John Randolph arranged the financing through FHA’s 232/223(f) mortgage insurance program. 

The financing will be utilized for a 22-property skilled nursing portfolio with 2,682 total beds. Five of the facilities are located in Mississippi, and 17 are located in Florida.

Proceeds of the loan were utilized to pay down an existing bridge loan, which funded the purchase of 66 facilities.

CBRE Secures $28.7 Million Loan for Senior Living Community in Denver

CBRE National Senior Housing Vice Chairman Aron Will arranged construction financing on behalf of a joint venture between MGL Partners, Blue Moon Capital Partners and Leisure Care for Carillon DTC Senior Living, a to-be-built, Class A senior living community in Denver.

The independent living, assisted living and memory care community will have 163 units in total.

CBRE secured a non-recourse, $28.7 million floating rate loan which features a 6-year term with 48 months of interest only. The loan was procured from a regional bank, according to CBRE.

Boston-based Blue Moon is a private equity investment advisor established to match institutional capital with forward-thinking senior housing companies diversified by geography and operating platform. MGL Partners, meanwhile, is a Denver-based senior housing and multifamily development firm. 

Seattle-based Leisure Care currently operates 39 senior living communities with more than 2,500 employees across the United States. The company has about 6,000 units under management and serves more than 7,000 residents.

Ziegler Prices $61.53 Million Financing For Westminster Manor

Chicago-based speciality investment bank Ziegler announced the successful bond pricing of Westminster Manor’s $61,525,000 Series 2016 Bonds.

Austin, Texas-based Westminster Manor is a not-for-profit organization established in 1973 for the purpose of operating and owning a retirement community. Specifically, Westminster is a Type A continuing care retirement community (CCRC) with a total of 328 independent living units and 22 assisted living units. The CCRC also includes The Arbour at Westminster Health Center, which has 85 skilled nursing beds, 30 of which are used for memory support. Life Care Services has managed the CCRC since 1981.

The proceeds of the $61,525,000 Series 2016 Bonds will be utilized to (1) refund a portion of the outstanding Series 2010 Fixed Rate Bonds, (2) finance a debt service reserve fund for the Series 2016 Bonds, and (3) pay certain costs of issuance, according to a Ziegler press release. The Series 2016 Tax-Exempt Fixed Rate Bonds earned a “BBB” rating from Fitch.

Additionally, Westminster will realize about $588,000 in yearly cash flow savings for the next 24 years, representing $11.4 million on a net present value basis. 

Grandbridge Facilitates $43.5 Million Seniors Housing Acquisition/Bridge Loan 

Grandbridge Real Estate Capital’s Seniors Housing and Healthcare Finance team recently facilitated the closing of a $43.5 million acquisition/bridge loan to a joint venture between senior living owner/operator Meridian Senior Living and Chicago-based Blue Vista Capital Management, LLC.

Specifically, the non-recourse loan was secured by two assisted living communities: the 147-unit Chevy Chase House in Washington, D.C. and the 88-unit Country House in Yorktown Heights, New York.

Funding for the purchase was provided through BB&T Real Estate Funding, Grandbridge’s exclusive proprietary lending platform. Senior Vice President Richard Thomas and Vice President Meredith Davis originated the transaction, according to a Grandbridge press release.

Written by Mary Kate Nelson

The post Senior Housing Finance Activity: RED Capital, CBRE appeared first on Senior Housing News.

Senior Housing Finance Activity: Lancaster Pollard, RED Capital

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Lancaster Pollard Helps Two California-Based Senior Living Providers Refinance Communities 

Lancaster Pollard recently helped two California-based clients refinance their senior housing properties using the Fannie Mae Seniors Housing program.

First, Lancaster Pollard assisted Sterling Senior Communities in completing a $19 million refinance of Tanner Springs, a 115-bed assisted living and memory care community in Oregon. The move refinanced an existing $10.5 million HUD loan and included a reimbursement of $8.2 million for previously incurred cap expenditures. Jason Dopoulos led the transaction for Lancaster Pollard, the company said in a press release.

In the second transaction, Lancaster Pollard helped Cornerstone Assisted Living Communities with a $14.5 million refinance with the Fannie Mae Seniors Housing program. The 110-bed assisted living community, located in northern California, successfully refinanced $9.6 million of existing debt and included a reimbursement of $4 million for cap expenditures that were previously incurred, with the remaining loan amount used to pay transaction expenses. Grant Goodman led the transaction for Lancaster Pollard.

Casey Moore and Doug Harper, managing directors of agency finance at Lancaster Pollard, helped both Goodman and Dopoulos with the transactions.

The Fannie Mae Seniors Housing program provides intermediate and long-term variable or fixed-rate non-recourse loans in a timely and cost efficient manner for the acquisition or refinance of stabilized properties.

iBorrow Provides $13.5 Million Loan to Azure Leisure Living

A Los Angeles-based private direct lender for commercial real estate, iBorrow, provided a $13.5 million loan to Azure Leisure Living for La Palma Royale, an assisted living community in Anaheim, California.

The 199-bed, 73,641-square-foot building was constructed in 1974, and has been remodeled two times since then.

Azure Leisure Living, the borrower, intends to utilize the funds, along with an additional $8 million in equity, to buy the community. Azure began co-managing the community earlier in 2016 and has boosted the occupancy rate up to the national average, iBorrow noted.

The fact that Azure Leisure Living invested $8 million of new equity in connection with the acquisition, with little debt in any of their other properties, helped iBorrow make the decision to loan the $13.5 million, iBorrow CEO Brian Good said in a press release.

“Also, the facility qualifies for the federally funded Assisted Living Waiver program—which provides additional income to the operator,” Good added. “Most lenders were afraid to underwrite the property due to its special use, but we created a loan structure that leaves us confident that the property will perform to its full potential and that investors are well protected.”

RED Continues Strong Relationship with National Church Residences with a MAP and Lean Closing for Ohio Independent and Assisted Living Facility

The mortgage banking arm of RED Capital Group, LLC, RED Mortgage Capital, recently coordinated a MAP and Lean closing with National Church Residences for a refinance and renovation of Portage Trail Village, a property in Cuyahoga Falls, Ohio.

Portage Trail is a 13-story, 183-unit HUD Section 202 apartment community with occupancy limited to heads of household who are 62 years and older or handicapped. The property, which National Church Residences purchased in 1991, is 100% Section 8 subsidized.

As part of the Assisted Living Conversion Program (ALCP) through HUD, National Church Residences renovated Portage Trail in 2009 to convert the first six floors of the building to assisted living units. The remaining floors at Portage Trail are still independent living units.

The $3.1 million FHA MAP financing, together with $1.06 million in FHA Lean financing, is set to cover the rehabilitation of Portage Trail, according to RED Capital. The process required the building to be divided into two distinct condominium facilities. The independent living units were funded under the MAP program, and the rehab for the assisted living units was funded via the Lean program.

Additionally, National Church Residences was able to leverage more equity from Low Income Housing Tax Credits (LIHTC), as well as a $1 million subordinate loan from the Ohio Housing Finance Agency.

Capital Funding Group Announces $25 Million in Loan Closings

Capital Funding Group (CFG) recently announced several loan closings, including a $2.5 million working capital line of credit for La Brea Rehabilitation Center; a $17.6 million HUD 232 loan to finance the new construction of an assisted living community in Cary, North Carolina; and a $5 million cash flow loan for a Texas skilled nursing facility operator. Together, these loan closings total about $25 million.

Once finished, the new assisted living community in Cary, North Carolina will have 40 assisted living units and 40 memory care units. The community is scheduled to open in May 2017. The loan, which closed on Sept. 29, was originated by CFG Director of Real Estate Finance Gary Sever. Capital Funding, LLC acted as only lender.

CFG Director Chip Woelper, meanwhile, originated the $2.5 million working capital line of credit for The Rehabilitation Center on La Brea in Los Angeles, California. The loan closed in October.

Jeffrey Stein, an executive managing director at CFG, originated the $5 million cash flow loan for the Texas skilled nursing facility operator. The loan also closed in October.

Lancaster Pollard Closes Deals Using New HUD Debt Eligibility Guidance

Lancaster Pollard recently announced the successful closings of 10 different transactions for three different clients utilizing the updated HUD debt eligibility guidance.

Six of the transactions were for a portfolio of properties owned and operated by The Brook Retirement Communities, a senior housing provider with communities in central and northern Michigan. Lancaster Pollard helped Brook Retirement Communities recapitalize six of its communities with the FHA Sec. 232/223(f) program for a total loan amount of $26.9 million.

Using the new debt eligibility guidance, Lancaster Pollard obtained the waiver required to start the process right away, enabling the borrower to benefit from permanent financing at a low interest rate. Brandon Healy led the transactions for Lancaster Pollard, the company said.

Lancaster Pollard also helped Agemark Corporation bypass the two-year seasoning period and refinance two of its memory care communities in Nebraska with the FHA Sec. 232/223(f) program. The total loan amount was $11.1 million, according to Lancaster Pollard. Grant Goodman led these transactions for Lancaster Pollard.

The last two transactions were for a senior housing operator in the Midwest that was interested in buying out its partners and refinancing the communities’ existing debt.

“We utilized our internal bridge loan platform to structure the partner buyout and refinance of existing facility debt,” said Healy, who again led the transactions for Lancaster Pollard. “We then submitted the FHA 232/223(f) applications as soon as the new debt eligibility guidance was released.”

As part of the new HUD guidance, debt eligibility and seasoning definitions may be broadened to enable more immediate refinancing of project-related debt in the operator’s name. Additionally, bridge financing may be utilized for partner buy-outs and identity of interest (IOI) purchases. Both of these options are subject to the review of HUD. Eligible indebtedness and loan-to-value (LTV) requirements vary, depending on the specific circumstances surrounding a transaction.

CBRE Arranges $77.3 Million Sale and $50.5 Million Financing of Senior Housing Communities in Georgia 

CBRE Capital Markets’ National Senior Housing group recently arranged the sale of two senior housing communities in Georgia to an affiliate of Arcapita Investment Management US for $77.25 million, or $327,330 per unit.

The communities included in the transaction are Arbor Terrace of East Cobb in Marietta, Georgia, which has 90 units; and Arbor Terrace Peachtree City in Peachtree City, Georgia, which has 146 units.

“The buyer will continue to use the current operator, The Arbor Company, through the acquisition of these communities. Plans to further expand this relationship are ongoing,“  CBRE National Senior Housing Executive Vice President Lisa Widmier said.

Widmier and Matthew Whitlock of CBRE Capital Markets’ National Senior Housing team represented the seller, affiliates of Capitol Seniors Housing.

Meanwhile, Aron Will of CBRE Capital Markets’ National Senior Housing Team originated $50.5 million in acquisition financing on the borrower’s behalf. CBRE, via its Freddie Mac Seller Servicer direct lending program, secured a fixed-rate, seven-year loan with 36 months interest only.

Together, Arbor Terrace of East Cobb and Arbor Terrace Peachtree City have 236 independent living, assisted living, personal care and memory care units.

Walker & Dunlop Closes $25 Million Fannie Mae Loan for Seniors Community in Washington 

Walker & Dunlop Inc. recently arranged a $25 million loan for Wheatland Village, a Class A independent living, assisted living and memory care community operated by Portland, Oregon-based Generations Senior Living in Walla Walla, Washington. In total, the community has 134 independent living units, 62 assisted living units and 38 memory care units.

Generations Senior Living developed Wheatland Village in 2004 via a partnership with a not-for-profit hospital.

William Jackson and Jeffrey Ringwald of Walker & Dunlop structured the 15-year, fixed-rate Fannie Mae loan featuring a 30-year amortization schedule. The deal consolidates two existing loans and has a 60% loan-to-value ratio.

Written by Mary Kate Nelson

The post Senior Housing Finance Activity: Lancaster Pollard, RED Capital appeared first on Senior Housing News.

Senior Housing Finance Activity: Five Star Tender Offer

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ABP Acquisition LLC Announces Tender Offer Results for Five Star Shares

On Nov. 11, ABP Acquisition LLC announced the results of its tender offer to buy as many as 18 million shares of Five Star Quality Care, Inc. (Nasdaq: FVE) at a purchase price of $3.00 per share, net to the seller in cash, without interest. ABP Acquisition LLC is owned by Five Star Quality Care Board of Directors Managing Director Barry M. Portnoy, who also serves as a managing trustee on the board of Senior Housing Properties Trust, a real estate investment trust (REIT) that acts as Five Star’s major landlord.

This appears to have consolidated the Portnoy family’s control of the company, which has been challenged by activist shareholders William Thomas and Robert Thomas, co-founders of senior housing owner/operator Senior Star. The Thomas brothers launched an effort to make a competing tender offer, and also are seeking to place a new director on the Five Star board. 

Directors at Five Star waived certain ownership restrictions to make the Portnoy tender offer possible. Senior Star sought similar waivers but were turned down at least temporarily by Five Star’s board.

ABP’s tender offer expired at midnight EST on Nov. 10. The depositary for the tender offer has reported that the total number of shares tendered was 22,769,337, based upon a preliminary count. As a result, it seems that the tender offer was over-subscribed. Following the terms of the tender offer, the number of shares that ABP will purchase from tendering stockholders will be prorated so that ABP only purchases 18 million shares at most, according to a press release.

The final results of the tender offer is set to be announced after the confirmation of the final number of shares properly tendered. Payment for shares accepted for purchase will be made quickly, in accordance with the terms of the tender offer. All shares not accepted for payment will be returned to the stockholder or, in the case of tendered shares delivered by book entry transfer, credited to the account of the book entry transfer facility from which the transfer had been made, as per the terms of the tender offer.

CBRE Arranges Loan for Acquisition of Independent Living Community in California

Aron Will, vice chairman of CBRE National Senior Housing, and Kevin Randles, senior vice president of CBRE’s Debt and Structured Finance office in Sacramento, California, recently arranged acquisition financing on behalf of Sacramento-based Ray Stone, Inc. to acquire River Oaks Retirement Community, a 102-unit independent living community in Redding, California.

CBRE Multifamily Capital originated a fixed-rate loan via its Fannie Mae DUS multifamily loan origination program. The loan amount was undisclosed.

Once the transaction closes, Ray Stone, Inc. will manage River Oaks Retirement Community. Ray Stone, Inc. currently operates seven other California senior living communities with more than 900 units in total.

Grandbridge Secures $43.5 Million Loan for Senior Living Joint Venture

Grandbridge Real Estate Capital’s Seniors Housing and Healthcare Finance team recently facilitated the closing of a $43.5 million acquisition/bridge loan to a joint venture between Hickory, North Carolina-based senior living owner/operator Meridian Senior Living and Chicago-based investment management firm Blue Vista Capital Management, LLC.

The non-recourse loan was secured by two assisted living communities: the 88-unit Country House in Yorktown Heights, New York, and the 147-unit Chevy Chase House in Washington, D.C.

Funding for the acquisition was provided through BB&T Real Estate Funding, Grandbridge’s exclusive proprietary lending platform. Senior Vice President Richard Thomas and Vice President Meredith Davis originated the transaction.

RED Capital Arranges $29 Million Loan for Kensington Senior Living LLC

RED Capital Group recently arranged a $29 million Fannie Mae loan for Kensington SM GP LLC, which will use the funds to refinance The Kensington Sierra Madre, a luxury assisted living and memory care community in Sierra Madre, California.

The Kensington Sierra Madre, which is owned and operated by Kensington Senior Living LLC, has 41 assisted living units and 34 memory care units. 

The financing replaces the community’s original construction loan, which was also provided by RED.

Kensington Senior Living owns and operates five assisted living communities in California, Virginia, Maryland and New York, with an additional four currently in development.

Harborview Capital Partners Closes $10.6 Million HUD Refinancing for Minnesota Assisted Living Community

Harborview Capital Partners, a commercial real estate finance, advisory and equity firm, recently arranged a $10.6 million refinancing for a 115-bed assisted living community in St. Paul, Minnesota. The name of the community was not disclosed.

The non-recourse HUD loan has a fixed interest rate and a 30-year term and a fixed interest rate. The borrower is based in Chicago.

The transaction was originated by Harborview’s principals, Ephraim Kutner and Jonathan Kutner.

Capital One Closes $14.1 Million FHA Loan Modification for California Senior Living Community

Capital One recently announced that it provided a $14.1 million HUD loan modification to a 100-bed assisted living and memory care community in Tequesta, Florida, called Tequesta Terrace. The community is owned by Terrace Communities, which also owns assisted living communities in Florida, New Hampshire, Vermont and Maine.

Capital One Senior Vice President of Originations Carolyn Whatley, who is based in the bank’s Palm Beach office, originated the transaction. The fixed-rate, non-recourse loan has 32+ years remaining on the original 35-year fully amortizing term.

“We previously refinanced a portfolio for Terrace Communities that included Tequesta Terrace,” Whatley said in a press release. “Due to a timing differential, this property closed with a slightly higher interest rate than the other properties. We monitored the rate environment and took advantage of HUD’s loan modification feature, which allows an interest rate reduction. We’re happy that we were able to provide Terrace Communities with a financial solution that fits well with their strategy as long-term holders of the property.”

Whatley and her team provided an analysis of the estimated savings to the borrowers, who decided to move forward with the loan modification—essentially an interest rate reset and reset of the prepayment terms, according to Capital One. The loan is assumable and also can be prepaid, so it offers flexibility if long-term strategic goals shift.

RED Capital and Sentio Healthcare Properties Secure $49.1 Million Loan for Senior Living Community in Texas

RED Capital Partners, LLC, the proprietary debt and equity banking arm of comprehensive capital provider RED Capital Group, LLC, and Sentio Healthcare Properties Inc. recently partnered on a $41.9 million loan to finance the development of The Delaney at Georgetown Village, a 211-unit Class A senior living community in Georgetown, Texas.

Specifically, RED provided a $20 million balance sheet loan financing, with Sentio funding the balance. The project was developed and is owned by affiliates of Des Moines, Iowa-based Life Care Services, LLC.

Construction was almost complete on The Delaney, which has 120 independent living units, 55 assisted living units and 36 memory care units, when RED closed on the loan.

“We are encouraged by the development progress at the property,” said Spencer Smith, SVP of Sentio Investments. “The RED team was able to understand our goals and successfully helped structure a loan financing that worked well for RED, Sentio, and LCS.”

“We are very happy to be working with John Mark Ramsey and his team at Sentio,” said Kathryn Burton Gray, Senior Managing Director for RED. “This is the type of creative financing that allows relationship partners to leverage off RED for the entire capital stack— from bridge loans to permanent lending.“

Sentio is a public, non-listed real estate investment trust (REIT) that invests only in health care-related real estate. Sentio Healthcare’s current portfolio has 34 properties across 16 different states.

Written by Mary Kate Nelson

The post Senior Housing Finance Activity: Five Star Tender Offer appeared first on Senior Housing News.


ORIX Closes $350 Million CLO, Includes Assisted Living Loans

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In another sign of the rising popularity in collateralized loan obligations (CLO), Dallas-based financial services firm ORIX USA announced it closed on a $350 million CLO fund, with a sizable portion of the loans collateralized by senior housing.

CLOs are pools of below investment-grade loans sold in pieces to investors. When loans are paid off, they can be replaced with like-minded capital.

The fund’s initial pool consists of $299.4 million in existing commercial mortgages originated between 2014 and 2018 — 12 in the past year — plus a $50.6 million reserve for assets ORIX plans to acquire during a 120-day ramp-up period. Four of the loans in the initial collateral pool are secured by private-pay assisted living facilities, representing 17.1% of the pool. Fourteen loans are backed by multifamily properties, representing 62.3%. The rest is backed by self-storage, retail and a hotel.

Lancaster Pollard and ORIX affiliates RED Capital Group and ORIX Real Estate Americas originated loans of the CLO, ORIX USA chairman, President and CEO Hideto Nishitani said in a statement. Several of the RED Capital loans were originated to drive business to another ORIX subsidiary, Boston Financial Investment Management, the statement read.

ORIX USA and its family of companies hold $8 billion of assets and manage an extra $34 billion. The company acquired Lancaster Pollard in 2017.

CLOs are growing in popularity since a March 2018 federal court ruled that the funds no longer have to comply with risk retention rules. Greystone launched a $300 million CLO last October, backed by bridge loans on senior housing and care assets. The fund would be a complement to Greystone’s lending activities and other financing platforms, Senior Managing Director Art Hatzopoulos told Senior Housing News at the time.

J.P. Morgan Securities acted as sole structuring agent and lead placement agent for the transaction. Wells Fargo Securities was co-lead manager, and Citi acted as co-manager for the offering.

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ORIX Unites Lancaster Pollard, Hunt, RED Capital Under Lument Brand

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Three big names in senior housing finance — Hunt Real Estate Capital, Lancaster Pollard and RED Capital Group — now are unified under a single brand name, Lument.

The three firms were acquired individually by ORIX USA, a division of international financial services group ORIX Corporation. ORIX took full ownership of RED in 2016; acquired Lancaster Pollard in 2017; and added Hunt in 2019.

Creating a unified brand was part of the plan as the three firms integrated under the ORIX umbrella, James Flynn, CEO of the unified entity, told Senior Housing News in January 2020.

“We want to be viewed by our clients as partners and not simply a vendor or lender — we really want to be their partner in providing them with advisory services and lending opportunities and other capital solutions, both corporately and on a transaction basis,” he said. “I can assure you that will be a centerpiece of the overall brand and messaging for the market.”

Lancaster Pollard, Hunt and RED Capital were all major senior housing lenders individually, and now Lument is the largest FHA lender to the senior housing industry and is a top-three senior housing lender overall, as well as being a top-10 non-bank multifamily lender.

The brand name Lument was selected due to its associations with light and energy — important attributes given current uncertainties, Flynn said in a press release announcing the new brand.

“The compelling factor that led us to bring these companies together was their shared commitment to building relationships and driving their clients’ success,” said Terry Suzuki, president and CEO of ORIX Corporation USA. “As Lument, we can draw on the strength of our combined platforms and the depth of ORIX’s balance sheet to make that personal service more powerful than ever.”

Combining the platforms has entailed some operational changes.

“We have integrated all our credit, production, closing, technology, and support groups, and have worked to provide them with the resources and processes needed to conduct business even more efficiently,” Flynn told SHN in an email. “In addition, we are using the occasion of unifying our technology across the organization as an opportunity to provide a simpler, more powerful, and more productive experience for users. This includes developing a proprietary underwriting and pipeline system, expanding on the items we can support in terms of client document uploads, and widening the scope of our servicing portal to support a larger set of clients.”

Lument has continued to expand its portfolio even in the midst of the Covid-19 pandemic, the firm noted in its Tuesday press release. A recently announced transaction is the $33 million Fannie Mae refinance of The Plaza at Punchbowl, a senior housing community in Honolulu.

“In recent months, we have seen a lot of refinancings and note modifications, as borrowers look to capitalize on historically low interest rates and preserve liquidity,” Flynn told SHN. “We have found that during this challenging time, the best way for us to serve our clients has been to provide fast and efficient note modifications that save our clients’ money with minimal effort on their part. I expect that to continue going forward, but we should also see an increase in new construction, as those projects that were pushed to the side when the pandemic started should begin to move forward.”


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