August 5, 2021

MP Now News

Mortgage News

Transactions & Financings: Enso Village Closes $297M Bond Funding; Acts Retirement-Life Communities Bond Rating Affirmed

Enso Village that $ 300 million life plan community under development from Kendal Corporation, Greenbrier Development and the San Francisco Zen Center now has the majority of its capital to begin construction.

Chicago-based investment bank Ziegler has signed a $ 297 million bond package on behalf of the joint venture. The bonds were issued by the California Public Finance Authority. The bonds were issued in three tranches: one as a tax-exempt, fixed-income bond with a redemption of 35 years; one is expected to be redeemed at 85%, 70% and 50% development utilization; and the third is expected to be redeemed at 13% occupancy.

Proceeds from the bond will be used to build the campus, refinance pre-development capital, pay 33 months of interest on the bond debt, fund debt service reserves for each debt tranche, and pay various costs associated with the issue.

The development team received approval to proceed with construction on June 18, Steven Bailey, senior vice president of New Business and Development at Kendal, told Senior Housing News. The construction period is expected to take 25 months and the Enso Village is scheduled to open in late summer 2023.

Memberships

Covenant Living, Three Crowns Park Sign Partnership Agreement

Covenant Living Communities and Services signed an affiliate agreement with Three Crowns Park, a life plans campus in Evanston, Illinois. After the expected closing on July 1, Covenant will take over the management and operation of the 125 year old community with joint governance and leadership.

Proveer Senior Living, East Gate Alliance Announce Partnership

Proveer Senior Living, a vertically integrated senior housing developer and management company based in McKinley, Texas, announced a general partnership agreement with East Gate Alliance, a family office real estate investor based in Oceanport, New Jersey.

The agreement enables the partners to quickly complete a variety of acquisition opportunities. The joint venture has been developing a partnership since early 2021 that also provides multiple lines of credit for pre-closing deal costs, due diligence expenses and corporate overheads, as well as access to working capital for several years.

Sales and operator transfers

Sherer Management sells 2 CCRCs, leaves the industry

Sherer Management Services, a senior housing and care provider based in Woodbine, Iowa, has sold two senior housing communities in western Iowa: Rose Villa in Woodbine and Longview Home in Missouri Valley. With these dispositions, Sherer is leaving the senior living and care industry.

The CCRCs offer independent living, assisted living and qualified nursing services as well as hospice care through the generation hospice. Lumen Vice President, Mergers and Acquisitions Dominic Porretta and Director Kevin Laidlaw led the transaction. The buyer is a regional operator working with a private investor. The terms of the deal were not disclosed.

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Livingston Street Capital acquired a 180-unit, 55-plus active adult community community in Lewisville, Texas that the company renamed Haven at Lewisville Lake. This is the first addition to Livingston Street’s extensive and geographically diverse active and independent living portfolio, bringing the company’s total units to over 1,000 units.

National Church Residences acquires affordable senior citizen homes in Texas

National Church Residences acquired Westminster Square Apartments, a three-story, affordable 107-unit apartment building for senior citizens in San Antonio. The building serves seniors aged 62 and over and offers studio, one and two-room units. Westminster Square is the nonprofit’s 32nd parish in Texas and the third in the San Antonio Metro Market. National Church Residences will also manage Capstone Real Estate Services.

The acquisition was financed with a Lument FHA loan and equity.

Newmark sells 2 active adult communities in Texas

Newmark (Nasdaq: NMRK) has completed the sale of two active adult communities in Texas: Attiva Denton, a 240-unit community in Denton; and Attiva Park, a 162 unit parish in Ft. Value. The terms of the deal were not disclosed.

Newmark’s co-directors and vice chairmen of the company’s Healthcare and Alternative Real Estate Assets Group Ryan Maconachy and Chad Lavender represented the seller, Cortland, on the sale.

SLIB completes sale of Georgia assisted living facility

Senior Living Investment Brokerage Managing Director Brad Clousing and Senior Vice President Dan Geraghtycompleted the sale of Brickmont Assisted Living and Memory Care, an assisted living and memory care facility of 94 units in Milton, Georgia. The seller was a local developer who wanted to leave the building as soon as it reached its investment horizon. The Tennessee-based buyer wants to expand its presence in strategic markets in the southeastern United States

Financing

Ziegler, M&T Realty Capital Closes $ 4.4M Fannie Mae Refinance for Essex Communities

Ziegler, in partnership with M&T Realty Capital, has completed a $ 4.37 million Fannie Mae refinancing package on behalf of Essex Communities. The proceeds will be used to refinance existing debt of The Regency, an active adult community of 55+ in Kearney, Nebraska.

The fixed-rate loan with a term of 10 years had a lending value of 75% with two years of pure interest payment, followed by 30 years of repayment. The package also includes a diminishing prepayment plan that gives Essex flexibility in later years. Director Eric Johnson led the transaction for Ziegler from the company’s Denver office. Managing Director Steven Muth and Seniors Housing Program Manager Matthew Pipitone led the transaction for M&T.

BMO Harris closes $ 19.4 million home loan for Sunrise Senior Living

BMO Harris Healthcare Real Estate Finance has completed a $ 19.4 million home loan for Sunrise Senior Living. The proceeds will be used to renovate an assisted living and memory maintenance facility with 110 units in Redmond, Washington.

Valuation prospects

Fitch announces updates to the bond ratings of 7 CCRCs

Fitch Ratings announced the following updates to its bond ratings:

  • Fitch has assigned Acts-Retirement Life Communities an “A-” issuer default rating and confirmed an “A-” rating for income bonds issued by various issuers in Pennsylvania, Delaware, South Carolina, Florida and Georgia on behalf of the obligated group. The rating outlook is stable. In addition, Fitch has removed the mandatory group from the criteria monitoring. Key evaluation factors include Acts Scale as a multi-state provider; an operating profile appropriate to its size and growth; and a resilient profile for moderate use.
  • Fitch has assigned Fox Run in Orchard Park, a CCRC in Orchard Park, New York, a “BBB” issuer default rating and the bond rating to 39 million. The rating outlook is stable. The most important rating drivers include improving liquidity and strong cost management.
  • Fitch assigned a BBB issuer default rating and upheld $ 46 million in 2016 Series Fixed Income issued by New Hope Cultural Education Facilities Finance Corporation on behalf of Legacy Willow Bend, a CCRC in Plano, Texas were. The rating outlook is stable. Key drivers include solid demand, solid historical operating metrics, and an adequate short-term financial outlook.
  • Fitch assigned a BBB issuer default rating and re-affirmed the BBB rating for $ 22.6 million in Series 2015A fixed income bonds issued by the Indiana Finance Authority on behalf of Marquette, an Indianapolis CCRC. The rating outlook is stable. Key drivers include solid demand trends, strong liquidity and improved operations.
  • Fitch has assigned an issuer default rating of BBB to the 2021 Series Income Refundable Notes expected to be issued by New Hope Cultural Education Facilities Finance Corporation on behalf of Westminster Manor, a CCRC in Austin, Texas. The rating outlook is stable. The most important rating drivers include a strong market position, consistent operation and moderate pressure due to an ongoing credit-financed expansion project.
  • Fitch has given a BBB issuer default rating of $ 59 million in Series 2021 A and B bonds to be issued by the Indiana Finance Authority on behalf of BHI Senior Living, an Indianapolis retirement community. Fitch also confirmed the BBB rating for $ 179 million in 2011, 2013A, 2016A and 2018A series revenue bonds issued by IFA on behalf of BWI. The rating outlook is stable. Key drivers include robust multi-location demand, consistently strong historical business, reasonable financial profile with expected improvement, and ongoing pressures on managed care and skilled caregivers cohorts due to Covid-19.
  • Fitch gave an issuer default rating of “BB +” and re-affirmed the “BB +” rating on various bonds of $ 134.65 million issued by Florida Development Resource Corporation and the Orange County Healthcare Facilities Authority on behalf of the Mayflower Retirement Center were issued in Winter Park. Florida. The rating outlook is stable. The most important drivers include a good market position in a highly competitive market, adequate operational performance, continuous expansion of independent living and the acceptability of income and operational risk in the middle range.

miscellaneous

Kinderhook Industries Subsidiary Acquires Medicare Advantage Network

MHH Healthcare, a subsidiary of New York private equity firm Kinderhook Industries, acquired Medical Card Services (MCS), a health services organization based in San Juan, Puerto Rico that offers a variety of insurance plans and care for Medicare Advantage and. manages commercial insurance members across the Commonwealth. The terms of the deal were not disclosed.

MCS is the 14ththe largest MA plan and the seventh largest dual plan in the US with more than 185,000 Medicare Advantage members and 205,000 commercial insurance members.

Enseo receives growth investment from HIG Capital

Enseo, a service provider providing in-room technology solutions to the hospitality, senior living, education and healthcare sectors, received a growth investment from HIG Capital, an alternative investment firm with $ 44 billion in equity under management. The amount of the investment was not disclosed.

AlayaCare raises $ 225 million

AlayaCare, the global home and community care software company, has raised $ 225 million in Series D CAD funding led by Generation Investment Management. Other investors include Klass Capital and the established investors Inovia Capital, CDPQ and Investissement Québec.