Transactions and Financing: Welltower’s $ 4 billion credit facility; Ziegler’s $ 141 million financing volume

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Welltower (NYSE: WELL) has improved its short and long term liquidity.

The Toledo, Ohio-based healthcare real estate investment trust has closed an extended $ 4 billion unsecured revolving line of credit. This will replace an existing $ 3 billion credit facility.

In addition, Welltower has two existing facilities outstanding: a $ 500 million term loan and a C $ 250 million (US $ 250.5 million) term loan. The new facility was backed by 31 existing and new financial institutions and was significantly oversubscribed. It consists of a tranche maturing on June 4, 2023 and a $ 3 billion tranche maturing on June 4, 2025. Both tranches can be extended by two successive six-month maturities at Welltower’s option.

Affiliations

Lifespire of Virginia and Pinnacle Living Complete Home Care Joint Venture

Lifespire of Virginia and Pinnacle Living have entered into a joint venture agreement to provide home health and other organizational support services.

The new company, Senior Living Partners of Virginia (SLP), will allow the two organizations to officially collaborate and expand their growth to serve those not currently living in senior housing. The joint venture also completed the purchase of Williamsburg Landing Home Health and acquired its existing assets, including state and federal home health licenses and certifications. The home care company will operate under the name Affirmation Home Health.

SLP hired William Mayes to lead the new company as CEO, and Jennifer Rauschenburg as administrator and director of clinical services.

Sales and operator transitions

Blueprint Healthcare Real Estate Advisors Executive Managing Director and Co-Founder Ben Firestone, Senior Director and Head of Capital Markets Alex Florea, Senior Director Amy Sitzman and Senior Partner Giancarlo Riso were the only brokers in selling a community independent living room of 100 units. in the southwest. The buyer and seller agreed to a letter of intent in March 2020, but suspended the transaction due to the coronavirus pandemic. Blueprint maintained communications between the two parties and concluded the agreement.

Presbyterian Senior Living and Tryko Partners Agree to Purchase Pennsylvania CCRC, Maryland’s Independent Living Community

Presbyterian Senior Living and Tryko Partners have entered into a sales contract whereby private equity firm Tryko will purchase Westminster Village, a 178-bed CPAB in Allentown, PA; and Heritage Run, a 34 unit independent rental community in Baltimore. With closure scheduled for summer 2021, Tryko will launch a capital improvement program to fully modernize Westminster Village.

SLIB carries out 2 transactions

Senior Living Investment Brokerage has carried out the following transactions:

Recommended SHN + exclusives

  • CEOs Jason Punzel, Brad Goodsell and Vince Viverito have completed the sale of a 98-unit / 118-bed assisted living and memory care facility in Las Vegas. The acquirer is a national private equity fund which uses a new third-party manager. The seller is a local developer.
  • Punzel and general manager Ryan Saul were the sole brokers in the $ 10.2 million sale of Olympic Village, an active adult community 55 and older in Sun Prairie, Wisconsin. SLIB worked with current residents to help form a new nonprofit entity to purchase and control the property. The company also helped find financing through Starion Bank and introduced the new owners to an operator, Attic Angel, to provide management services.

Funding

Ziegler completes 3 transactions totaling $ 141.4 million

Ziegler performed the following operations:

  • Ziegler acted as the exclusive capital structuring advisor on behalf of the Symphony Care Network in the $ 48.95 million acquisition of two qualified nursing facilities and one supportive living facility in the Lincoln Park and South Shore neighborhoods of Chicago. The Seller is a publicly traded REIT and is the final phase of a larger portfolio restructuring between Symphony and the Seller.
  • Ziegler has placed and closed a $ 48 million financial package for Tabitha Grand Island, to build a new community, Tabitha at Prairie Commons in Grand Island, Nebraska. Package consists of $ 33.95 million of Series 2021AB Revenue Bonds placed with Pinnacle Bank, a $ 12 million subordinated loan placed with the Church’s Mission Investment Fund Evangelical Lutheran America (MIF) and a $ 2.035 million Fiscal Supplementary Funding Loan (TIF) provided by Pinacle Bank. The proceeds will be used to finance the construction of Tabitha at Prairie Commons, fund approximately 27 months of interest on the bonds, and pay certain issuance costs associated with the financing.
  • Ziegler has completed a $ 44.415 million Series 2021 bond issue on behalf of The Forest at Duke, a nonprofit continuing care retirement community in Durham, North Carolina, just south of the University Duke. The proceeds, along with other available funds, will be used to finance the costs of a capital improvement project consisting of a replacement health and wellness center that will include 90 new units (32 assisted living units and 58 skilled nurses) in a “small house” format. In addition, the proceeds will pay a portion of the interest on the bonds and will pay for certain fees and expenses incurred in connection with the sale and issuance of the bonds.

HJ Sims arranges $ 42 million in funding for campus expansion

HJ Sims closed a $ 41.9 million financial package for Sunset Retirement Communities, a Michigan-based nonprofit provider. The proceeds are intended to fund the expansion of independent living offerings at Waterford Place, a retirement community in Jenison, Michigan.

BMO Harris closes $ 73.4 million construction financing for LCS development in New Jersey

BMO Harris Bank healthcare real estate finance group has closed $ 73.4 million financing package to build a joint venture between LCS and an institutional partner for a community of 220 independent living, living Assisted and Memory Care in Florham Park, New Jersey. People’s United Bank was a $ 30 million participant in the deal.

Core stocks targeting $ 50 million in commitments with a new preferred equity fund

Los Angeles-based private equity firm Base Equities is launching a new low-balance fund focusing only on low-balance preferred stocks ($ 1-5 million) for commercial real estate investments, with an emphasis on multi-family transactions of $ 5 to $ 30 million. . The fund targets $ 50 million in commitments from high net worth individuals, family offices and businesses, and will target value-added transactions with proven sponsors.

About 25% of the fund’s commitments will be allocated to other types of property, including senior housing.

Outlook Notes

Fitch announces bond rating updates on 6 CCRC

Fitch Ratings announced the following bond rating updates:

  • Fitch assigned an issuer default rating of “BBB” and affirmed a “BBB” rating on $ 164.44 million of miscellaneous income, as well as income and repayment bonds, issued by the City of Atlantic Beach , Florida on behalf of the Naval Continuing Care Retirement Foundation, doing business as Fleet Landing The rating outlook is stable. Key scoring factors include the campus’s status as a single-site CPAB with high demand across the continuum of care, a strong operating history, and a resilient financial profile resisting the moderate stress of a major expansion of the hospital. independent life.
  • Fitch assigned an issuer default rating of “BBB-” to Landis Communities & Affiliates, and confirmed the “BBB-” rating on the $ 46 million series 2015A health center revenue repayment obligations issued by Lancaster County Hospital Authority (PA) on behalf of Landis Homes Retirement Community. The rating outlook is stable. Key rating factors include strong demand driven by independent housing, strong income defense and mid-range operating risk ratings, as well as strong operations and cash flow.
  • Fitch assigned an issuer default rating of “BB” and affirmed “BB” ratings on the 2018A Series Income Bonds issued by the Hospital Facility Authority of Clackamas County, Oregon and the Series 2017A issued by the Public Finance Authority at Mary’s Woods in Marylhurst. (MWM). The rating outlook is stable. The main scoring factors include strong demand trends, an expected improvement in operations and stable but weak debt measures linked to the completion of new independent housing units.
  • Fitch has assigned an income rating of “BBB +” to $ 65.5 million in Series 2021 Income Bonds expected to be issued by the Pennsylvania Economic Development Financing Authority on behalf of the Presbyterian Homes Obligated Group (PHOG). In addition, Fitch removed PHOG from meeting the criteria, assigned an issuer default rating of “BBB +” and a “BBB +” rating to $ 14.2 million of Series 2008C variable income bonds issued by Cumberland County Municipal Authority and $ 9 million in 2013 Series revenue. bonds issued by the Philadelphia Authority for Industrial Development. The rating outlook is stable. The main rating drivers include stable historical performance, a strong capital improvement plan, a stable financial profile resisting moderate stress and strong demand for services.
  • Fitch has assigned an “A-” issuer default rating and affirmed the “A-” income rating on approximately $ 28 million of income bonds issued by Westchester County Local Development Corporation on behalf of Miriam Osborn Memorial Home Association (MOMHA). The rating outlook has been revised to positive. Key drivers include strong demand in a market with strong demographics, stable operating performance, and a resilient stress-resistant financial environment.
  • Fitch has assigned “BBB-” ratings to $ 9.4 million of Series 2021 Fixed Rate Fixed Income Bonds and $ 31.8 million of series 2022 to be issued by the Economic Development Corporation of the Town of Kentwood, Michigan on behalf of Holland Home Obligated Group (HHOG). In addition, Fitch assigned HHOG an issuer default rating of “BBB-” and upheld HHOG’s existing limited income obligations at “BBB-”. The rating outlook is stable. The main drivers include strong demand in its market, an adequate long-term financial profile, an expected moderation in capital spending and a solid operating history.

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