Senior Housing Finance Activity: Greystone, HJ Sims

Greystone Secures $19 Million in Refinancing for Dallas-Based Senior Housing Properties

Greystone, a New York-based real estate lending, investment and advisory firm, has secured $19 million in refinancing of two undisclosed seniors housing assets located in Dallas and in nearby suburb DeSoto, according to REBUSINESS.

Both loans were secured through Freddie Mac’s Targeted Affordable Housing (TAH) Express program.

The properties, which total 500 units, are made up of affordable housing options for seniors who make 60% or less of the area median income.

Ziegler Closes $4.9 Million in FHA Refinancing For Virginia Affordable Housing Project

Chicago-based Ziegler, a specialty investment bank, has closed $4,876,000 in the refinancing of Heritage Haven by Ziegler Financing Corporation (ZFC), the FHA-insured mortgage lending arm of Ziegler.

ZFC’s knowledge in utilizing the U.S. Department of Housing and Urban Development’s multi-family refinancing program for affordable housing projects was able to reduce the borrower’s annual debt service costs; lower the interest rate from 6.20% to less than 3.45%; and capitalize more thanr $625,000 worth of planned repairs to upgrade and modernize the property.

Heritage Haven is a 150-unit affordable housing community sponsored by Virginia Mennonite Retirement Community (VMRC), located in Harrisonburg, Virginia. As a whole, the VMRC campus is comprised of 150 affordable housing units, 263 independent living units, 86 assisted living units and 120 nursing care beds.

HJ Sims Provides $80.1 Million in Bond Refinancing for Pennsylvania Seniors Housing Portfolio

HJ Sims, a Fairfield, Connecticut-based investment firm, has completed an $88.1 million bond refinancing for Presby’s Inspired Life, a non-profit seniors housing operator based in Lafayette Hill, Pennsylvania.

Presby’s Inspired Life owns and operates four market-rate seniors housing communities in the Philadelphia area: Rydal Park in Jenkintown; Rosemont Presbyterian Village in Bryn Mawr; Spring Mill Presbyterian Village in Lafayette Hill; and Broomall Presbyterian Village in Broomall.

Presby has worked with HJ Sims since 2009, with the investment banking firm providing four financings worth more than $183 million. The current bonds will refinance bank debt and bonds from 2010 and 2013, with a maturity on the new bonds of 2048.

Presby previously purchased land adjacent to its Rydal Park campus for a new independent living project, Rydal Waters. Refinancing the outstanding bank debt freed up capacity among Presby’s existing bank relationships to finance the Rydal Waters project once it completes its pre-development and pre-marketing process.

The 2017 bonds eliminated Presby’s variable rate interest exposure, provided annual cash flow savings, boosted debt service coverage and leveled out and extended future debt service on a fixed-rate basis.

Beacon Hill at Eastgate Secures $42 Million in Financing

Michigan Christian Home, doing business as Beacon Hill at Eastgate has secured $42,540,000 in financing from Series 2017 bonds provided by Ziegler.

Beacon Hill initially contemplated a bifurcated structure with approximately $20 million of bank debt and $23 million of public fixed rate debt. However, as the pricing date approached and MMD and interest rate spreads grew more favorable, Beacon Hill opted for a fully public fixed rate offering. The non-rated Series 2017A Bonds is the sole debt outstanding and the first public fixed rate issuance for Beacon Hill.

The proceeds of the Series 2017A Bonds, together with certain other monies held by the Borrower, will be used to refund the outstanding tax-exempt Series 2015A, 2015B, 2015C and 2015D bonds held by First Midwest Bank and The Huntington Bank; fund the termination payment of two hedge agreements entered into in connection with the Series 2015 Bonds; fund certain capital expenditures as well as a debt service reserve fund; and pay the costs of issuance of the Series 2017A Bonds.

Beacon Hill, a Michigan non-profit corporation was founded in 1951 by area Baptist churches to provide senior living and healthcare services in a Christian environment to Grand Rapids seniors. Beacon Hill is a Type B CCRC that is situated on a 20-acre campus located in the Eastgate neighborhood of Grand Rapids

AVANA Capital Arranges $17.2 Million Loan for Kansas-Based Assisted Living Facility

Glendale, Arizona-based AVANA Capital has provided $17.2 million through a conventional bridge loan to Mainstreet Property Group LLC, a Carmel, Indiana-based health care real estate investment trust.

The loan was used to acquire the Healthcare Resort of Wichita, a 94-bed facility located 12 miles from downtown Wichita, Kansas.

In looking for financing sources, Mainstreet discovered AVANA Capital and closed on the acquisition within 35 days. AVANA was able to mitigate the lack of an operating license and allow the borrower an additional six months to secure the license.

MidCap Financial Closes First Mortgage Loan for Acquisition of Atlanta Senior Housing Portfolio

Bethesda, Maryland-based MidCap Financial, a commercial finance company focused on middle market transactions, recently closed a transaction with a joint venture between Artemis Real Estate Partners, a private equity real estate investment firm, and Allegro Senior Living, an operator and manager of retirement communities.

The $18,250,000 floating rate first mortgage loan facilitated the acquisition of three assisted living and memory care communities located in the Atlanta, Georgia market: Alto Senior Living of Buckhead, Georgia; Alto Senior Living of Alpharetta, Georgia; and Alto Senior Living of Marietta, Georgia.

The financing enables Artemis to reposition the assets by implementing a $7,000,000 capital improvement plan to renovate the exteriors, common areas and unit interiors of the three communities. Allegro will operate and manage the senior living communities under its brand, Alto.

Ziegler Closes $75 Million Horizon House Project Financing

Ziegler has announced the closing of the Horizon House Project $75,000,000 Series 2017 Bonds.

Horizon House will use the proceeds of the Bonds, together with certain other funds, to: refund all of the $45,400,000 outstanding Series 2014A Bonds and refund all of the $11,100,000 outstanding Series 2014B Bonds; pay or reimburse the borrower for the costs of the remodeling, renovation and equipping of the borrower’s continuing care retirement community; pay fees resulting from the termination of certain interest rate hedge agreements; and pay certain costs of issuance of the bonds.

Ziegler assisted Horizon House in achieving a first-time rating on the Bonds of “BBB+” from Fitch. The Series 2017 Bonds are comprised of $75,000,000 in serial and term bonds which amortize through January 1, 2048.

Horizon House, is a Washington-based non-profit corporation and 501(c)(3) organization that was established in 1961 to develop, own and operate senior living communities. Currently, Horizon House owns and operates a continuing care retirement community adjacent to downtown Seattle, offering 378 independent living apartments, 80 assisted living apartments and 25 dementia care supported living apartments, to its more than 540 residents. Horizon House is affiliated with the Pacific Northwest Conference of the United Church of Christ.

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