Harrison Street Real Estate Capitals $ 1.2 billion acquisition in early June of 24 senior housing communities formerly owned by Healthpeak Properties (NYSE: PEAK) and Gallaher Companies was made possible through loans from two major financial firms. Greystone placed and completed financing for the purchase of 16 of the parishes in the portfolio. The package included Freddie Mac loan takeovers. The terms of the deal were not disclosed. PGIM Real Estate has provided an acquisition loan to 12 municipalities. The company did not disclose the loan amount. Bryan McDonnell, Head of US Debt and Chair of Global Debt at PGIM Real Estate said, “This loan is backed by an exceptionally well diversified group of assets held in eight MSAs with favorable market dynamics and a dense and affluent regional demographic Basis benefit. ”“ This is the third major financing package from PGIM. In October 2020, the company provided a $ 460 million loan to fund the acquisition and recapitalization of a senior residential portfolio of 10 properties operated by Seattle-based Merrill Gardens. In April PGIM entered into a joint venture with Signature Senior Lifestyle, a subsidiary of Revera, to develop and operate senior living communities in the greater London area. Distributor and Operator Change Alta Senior Living Entered Florida Alta Senior Living entered the Sunshine State by acquiring an independent, 175-unit residential and assisted living community in Margate, Florida. Over the next year, Alta plans to invest $ 6.5 million to renovate the property known as Waterside Landing. The repositioning of 22 units on the first floor from assisted living to secure memory maintenance is planned. “Waterside Landing is exactly the kind of acquisition opportunity we’re looking for,” said Douglas Brawn, Principal of Alta Senior Living. “This community has so much potential and we saw the vision immediately on our first community tour. It took us several months to come up with the right business plan, but we’re excited to complete the renovations, improve the design and amenities, and convert half of the first floor into assured memory maintenance. ”Recommended SHN + Exclusives Alta has offices in Santa Monica, California; and West Palm Beach, Florida, and is working on several other acquisition opportunities in both states. The company is an integrated investment, development and operations company that owns and / or operates 530 units in three states. Lifespace Acquires CCRC Newcastle Place Lifespace Communities has acquired Newcastle Place, a senior citizen housing community (CCRC) in the Milwaukee suburb of Mequon, Wisconsin. Newcastle Place has 257 residences on 52 acres. This is the sixth lifespace community in the Midwest, bringing the company’s total portfolio to 16 CCRCs. “The energy in our strategic pipeline is palpable, which I see as an endorsement of the dedicated Lifespace team members who serve and support our residents and each other every day of the year,” said CEO Jesse Jantzen. “Only after intensive due diligence and analysis, in which culture is an essential part, do we take the path of growing together.” Lifespace is a non-profit association based in West Des Moines, Iowa. The company recently revamped its management and is in growth mode. Phoenix Senior Living to lead the assisted living facility in Alabama Phoenix Senior Living is to lead Autumn Cove Senior Living, an assisted living and memory maintenance facility in Anniston, Alabama. Financing Welltower Completes $ 500M Senior Notes Offering. Wells Fargo Securities, Citigroup Global Markets and Morgan Stanley acted as agents for the offer. Healthpeak Enters First $ 450 Million Green Bond Offering Healthpeak Properties has successfully evaluated its first green bond offering, a $ 450 million public offering of 1.35% senior unsecured notes due 2027. The Investor price was 99.877% of the face value of the Notes. The net proceeds of the offering, after deducting the subscription discount, the original issue discount, fees and expenses, are expected to be approximately $ 445.3 million. The offer is expected to end on July 12, provided the customary closing conditions are met. Wells Fargo Securities, Credit Agricole, JP Morgan, RBC Capital Markets, Scotiabank, PNC Capital Markets, Regions Securities, SMBC Nikko, TD Securities, Truist Securities and US Bancorp are acting as joint book-running managers for the offering. Ziegler Completes US $ 124M Financing for Oregon CCRC Ziegler has closed a US $ 124.2 million bond on behalf of Friendsview Manor, a nonprofit CCRC in Newburg, Oregon. The 2021A and 2021B Series Bonds were issued by the Yamhill County Hospital Authority, are federal and state income tax exempt, and are not publicly rated. Proceeds will be used for an ongoing expansion project consisting of 28 new self-contained residential duplexes and an extension to the community center in Springbrook Meadows, 96 new self-contained apartments in the University Village neighborhood, and the replacement of Charles Beals Health Center with 79 new residential care facilities. MidCap Financial closes first $ 46 million mortgage on Sonata portfolio of 5 properties MidCap Financial has closed first $ 46 million mortgage on funds managed by Fortress Investment Group affiliates. The loan enabled the acquisition of a portfolio of five senior living communities in South Florida for a total of 444 units that will continue to be operated by Sonata Senior Living. MidCap’s loan is structured with initial funding to facilitate the purchase of the communities and future funding for capital improvements. The financing was arranged by JLL on behalf of Fortress. HJ Sims subsidiary Sims Mortgage Funding completed a $ 10.8 million loan for Metairie Manor, an affordable 287-unit senior living community in Metairie, Louisiana operated by the Archdiocese of New Orleans. The refinance, a Section 223 (a) (7) HUD loan, lowered the interest rate on the property’s debt burden by 33% and resulted in an annual debt servicing saving of $ 118,000. SMF also negotiated a nearly ten year loan extension and built around $ 700,000 into the new loan to supplement an existing replacement reserve fund. The savings from the new loan will expand Metairie Manor’s capacity to expand services and programs for its residents and increase its capital reserves – all without increasing existing Section 8 funding. Ratings Outlook Fitch rates Healthpeak unsecured bonds a BBB + ; ‘ Rating outlook stable Fitch Ratings has assigned Healthpeak Properties (NYSE: PEAK) senior unsecured debt a BBB + rating, in line with its long-term issuer default rating and existing senior unsecured debt. The rating outlook is stable. This reflects the improvement in portfolio quality through the sale of the majority of senior residential real estate, as opposed to a smaller and more concentrated portfolio of life sciences real estate, medical practices and CCRCs. Fitch Announces Updates to 4 CCRCs’ Bond Ratings Fitch Ratings announced the following updates to its bond ratings: Fitch has given an issuer default rating of “BBB-” and a rating of “BBB-” to $ 47 million in the 2016 and 2017A series of fixed income bonds Industrial. Affirms Lexington, Virginia City Development Agency on behalf of the Lexington Retirement Community, which operates as Kendal in Lexington. The rating outlook is stable. Key rating drivers include consistent operational performance, strong demand in a soft housing market, and a stable financial profile. Fitch has given an issuer default rating of “BB +”, removed it from the criteria monitoring and confirmed the rating “BB +” for the 65 million dollar series 2020A. 2020B-1 and 2020B-2 turnover bonds issued by the Connecticut Health & Educational Facilities Authority on behalf of McLean Affiliates, a retirement community based in Simsbury, Connecticut. The rating outlook is stable. Major rating drivers include recent pandemic pressures on census and operations, although operations are expected to improve; and an improved financial profile. Fitch downgraded the $ 20 million Series Revenue Return Notes issued by the Massachusetts Development Finance Authority on behalf of Orchard Cove, a CCRc in Canton, Massachusetts, from “BBB +” to “BBB” in 2019. Fitch has also given a “BBB” issuer Defaut rating. The rating outlook is stable. Main drivers include weakened operations due to disruptions from the coronavirus pandemic, which resulted in a debt service coverage breach in fiscal 2020 and a slow recovery so far in fiscal 2021. Net entry fees fell significantly in the 2020 financial year due to moving in restrictions and marketing disruptions, and although moving in started this summer, it is expected that the occupancy of Independent Living Units (ILU) will remain below historical levels for the next 1-2 years Level Lagging Bonds issued by the New Hope Cultural Education Facilities Finance Corporation Retirement Facility on behalf of the Crestview Retirement Community in Bryan, Texas. Fitch has also assigned Crestview an issuer default rating of “BB +”. The rating outlook is negative. Key rating drivers include sparse operations due to pandemic-induced impacts that slowed the uptake of outside qualified care facilities and the move in of independent housing units in 2020. Crestview has violated its DSCR agreement with 0.7x coverage versus the required 1.2x and is seeking an exemption from its bondholders. Other GlynnDevins to be renamed Attane Senior Living and Health Care Marketing Company GlynnDevins is now known as Attane. The new name represents a symbolic but purposeful name that upholds the company’s position to deliver results, growth and success. In the past eight months, GlynnDevins has acquired two marketing technology companies – Linkmedia 360 in October 2020 and Bluespire in February 2021 – each referred to as “a GlynnDevins Company”. Since these acquisitions, the company has integrated operations, solution and marketing experts from all three companies and has grown rapidly with an average annual growth rate of 33% over five years.
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