Transactions and financing: PGIM, Greystone facilitate the Harrison Street-Oakmont transaction; Phoenix and Alta Grow; GlynnDevins changes brand
Harrison Street Real Estate Capital’s $ 1.2 billion acquisition of 24 seniors’ residences formerly owned by Healthpeak Properties (NYSE: PEAK) and Gallaher Companies in early June was facilitated by loans from two large financial firms.
Greystone placed and executed the financing for the purchase of 16 of the portfolio communities. The package involved loan assumptions from Freddie Mac. Terms of the contract are not disclosed.
PGIM Real Estate has granted an acquisition loan to 12 communities. The company did not disclose the amount of the loan.
Bryan McDonnell, Head of US Debt and President of Global Debt for PGIM Real Estate, said: âThis loan is secured by an exceptionally well-diversified group of assets, located in eight MSAs with favorable market dynamics, benefiting from dense and rich regional demographic bases. . “
This is the third major funding provided by PGIM. In October 2020, the company provided a $ 460 million loan to help finance the acquisition and recapitalization of a portfolio of 10 senior housing units 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 housing communities in Greater London.
Sales and operator transitions
Alta Senior Living enters Florida
Alta Senior Living entered the Sunshine State by acquiring a 175-unit independent living 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. Plans include repositioning 22 units from the first floor of an assisted living facility to secure memory care.
âWaterside Landing is exactly the type of acquisition opportunity that we are looking for right now,â said Douglas Brawn, director of Alta Senior Living. âThis community has so much potential, and we immediately saw the vision on our first community tour. It took us several months to come up with the right business plan, but we are delighted to complete the renovations, improve the design and amenities, and convert half of the first floor into a secure storage space.
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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 operating company that owns and / or operates 530 units in three states.
Phoenix Senior Living takes over the management of the assisted living facility in Alabama
Phoenix Senior Living has assumed management of Autumn Cove Senior Living, an assisted living and memory care facility in Anniston, Alabama.
Welltower closes $ 500 million senior note offering
Welltower (NYSE: WELL) successfully closed an offer of 2.050% senior unsecured notes due January 2029. Proceeds are used for general corporate purposes including debt repayment and investing in health care and senior housing.
Wells Fargo Securities, Citigroup Global Markets and Morgan Stanley served as representatives for the offering.
Healthpeak assesses initial green bond offering at $ 450 million
Healthpeak Properties was successful in pricing its first green bond offering, a $ 450 million public offering of 1.35% senior unsecured notes due 2027. The price to investors was 99.877% the principal amount of the notes. The net proceeds of the offering, after deducting the bought deal discount, the initial issue discount and fees and expenses, are expected to be approximately $ 445.3 million.
The offer is expected to close on July 12, subject to the satisfaction of customary closing conditions.
Wells Fargo Securities, CrÃ©dit Agricole, JP Morgan, RBC Capital Markets, Scotiabank, PNC Capital Markets, Regions Securities, SMBC Nikko, TD Securities, Truist Securities and US Bancorp are acting as co-book managers for the offering.
Ziegler Closes $ 124 Million Funding for CPAB Oregon
Ziegler completed a $ 124.2 million bond issue on behalf of Friendsview Manor, a nonprofit CPAB in Newburg, Oregon. The Series 2021A and Series 2021B bonds were issued by the Yamhill County Hospital Authority, are exempt from federal and state income tax, and do not carry a public rating.
The proceeds will be used for an ongoing expansion project comprising 28 new independent living cottage duplexes and an expansion of the Springbrook Meadows community center, 96 new independent living apartments in the University Village area and the replacement of the Charles Health Center. Beals by 79 new residential care units.
MidCap Financial closes $ 46 million first mortgage for Sonata’s portfolio of 5 properties
MidCap Financial has entered into a $ 46 million first mortgage with funds managed by subsidiaries of Fortress Investment Group. The loan facilitated the acquisition of a portfolio of five senior housing communities in South Florida, totaling 444 units, which will continue to be operated by Sonata Senior Living. The MidCap loan is structured with seed funding to facilitate community purchasing and future funding for capital improvements. Funding was arranged by JLL on behalf of Fortress.
HJ Sims affiliate, Sims Mortgage Funding, has closed a $ 10.8 million loan for Metairie Manor, a 287-unit affordable seniors housing community in Metairie, Louisiana, managed by the Archdiocese of New -OrlÃ©ans.
The refinance, a HUD Section 223 (a) (7) loan, reduced the interest rate on the property’s debt by 33% and produced an annual debt service savings of $ 118,000. SMF also negotiated a loan term extension of nearly ten years and added approximately $ 700,000 to the new loan to supplement an existing replacement reserve fund.
The savings from the new loan increase Metairie Manor’s ability to expand services and programs to its residents and increase its capital reserves – all without increasing existing Section 8 funding.
Fitch rates Healthpeak’s unsecured notes âBBB +; Â»Stable rating outlook
Fitch Ratings has assigned a âBBB +â rating to the senior unsecured notes issued by Healthpeak Properties (NYSE: PEAK), consistent with its long-term issuer default rating and existing senior unsecured debt ratings. The rating outlook is stable.
This reflects the improvement in the quality of the portfolio resulting from the sale of the majority of senior rental housing assets, which is offset by a smaller and more concentrated portfolio of life science buildings, residential buildings. medical offices and CCRC.
Fitch announces bond rating updates on 4 CCRC
Fitch Ratings announced the following bond rating updates:
- Fitch assigned an issuer default rating of “BBB-” and affirmed a “BBB-” rating over $ 47 million in the 2016 and 2017A series of fixed income bonds issued by the city’s Industrial Development Authority. of Lexington, Virginia business like Kendal in Lexington. The rating outlook is stable. The main rating drivers include stable operating performance, strong demand in a soft real estate market and a stable financial profile.
- Fitch assigned an issuer default rating of âBB +â, removed from meeting criteria and confirmed a âBB +â rating on the $ 65 million Series 2020A, 2020B-1 and 2020B-2 Income Bonds issued by the Connecticut Health & Educational Facilities Authority on behalf of McLean Affiliates, a retirement community in Simsbury, Connecticut. The rating outlook is stable. Key scoring factors include recent pandemic pressures on census and operations, although operations are expected to improve; and an improved financial profile.
- Fitch lowered the 2019 Series Income Repayment Bonds issued by the Massachusetts Development Finance Authority on behalf of Orchard Cove, a CCRc in Canton, Massachusetts, from “BBB +” to “BBB” by $ 20 million. Fitch has also assigned an issuer default rating of âBBBâ. The rating outlook is stable. The main drivers are the weakening of operations due to the disruption due to the coronavirus pandemic, leading to a breach of debt service coverage in fiscal year 2020 and a slow recovery so far in the course of the year 2020. ‘Fiscal Year 2021. Net entry charges decreased significantly in FY2020 due to restrictions on accommodation and marketing disruptions and although accommodation started to pick up this summer, occupancy rates independent living units (ILUs) are expected to continue to lag behind historical levels over the next 1-2 years.
- Fitch has confirmed the “BB +” rating on the outstanding 2016 Series Revenue Bonds of $ 46 million issued by the New Hope Cultural Education Facilities Finance Corporation Retirement Center on behalf of Crestview Retirement Community in Bryan, North America. Texas. Fitch has also assigned Crestview an issuer default rating of âBB +â. The rating outlook is negative. Key scoring factors include thin operations due to pandemic effects, which slowed admissions to outpatient skilled nursing facilities and moves to independent living units in 2020. Crestview violated its DSCR commitment with coverage of 0.7x against the required 1.2x, and requests an exemption from its bondholders.
GlynnDevins renames itself Attane
Seniors and healthcare marketing company GlynnDevins is now known as Attane.
The new name represents a symbolic but determined name that supports the company’s position in terms of 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 business”. Since the time of these acquisitions, the company has integrated the operations, solutions and marketing professionals of the three companies and has experienced a rapid growth trajectory with a five-year average annual growth rate of 33%.