Senior Housing Finance Activity: Ziegler, Ensign Group

Ziegler Closes $17.63 Million Valley Vista Care Corporation Financing

Chicago-based investment firm Ziegler has provided $17,630,000 in series 2017A&B financing for Valley Vista Care Corporation.

Valley Vista Care Corporation and Valley Community Housing Corporation are Idaho-based not-for-profit corporations and are the sole members of the Obligated Group. The Obligated Group operates 147 skilled nursing and skilled behavioral care beds, 59 assisted living units and 35 units for residents with mental illness and developmental disabilities.

The Obligated Group will utilizes the funds from the sale of the series 2017A bonds and other available funds to refund the prior bonds; fund improvements to the Sandpoint and St. Maries assisted living campuses; fund the reserve fund established under the bond indenture; and pay incurred expenses related with the issuance of the bonds.

In addition, Valley Vista will use the proceeds from the sale of the Series 2017B bonds and other available funds to refinance the prior loan and pay certain expenses incurred related to the issuance of the bonds.

Love Funding Provides $7.9 Million in Bridge Financing for Las Vegas Memory Care Center

Chicago-based Love Funding, a provider of healthcare, Federal Housing Administration (FHA) multi-family and affordable financing, has provided $7.9 million in bridge loan financing to build a new 46-bed memory care center in Las Vegas.

The new facility will be built close to Welbrook Transitional Rehabilitation in the Centennial Hills community. The existing facility offers rehabilitation services and overnight care for those recovering from an injury, planned surgery or illness. The new facility will assist the borrower in meeting the need for memory care.

Love Funding Senior Director Leonard A. Lucas of the firm’s Boston office obtained the bridge loan from Love Funding’s parent company, Midland States Bank.

The bridge financing was required by the company in light of the FHA construction financing not fitting the borrower’s development timeframe.

KeyBank Finances $57.7 Million for Pennsylvania-based Senior Housing Properties

KeyBank Real Estate Capital, the real estate investment arm of Cleveland-based KeyBank, has arranged $57.7 million in FHA financing for a regional owner and operator of healthcare facilities located in the northeastern U.S. The financing is secured by two seniors housing facilities based in Pennsylvania.

The properties include a 180-bed skilled nursing facility, and a 120-bed skilled nursing facility, that also has a 73-bed assisted living/independent living wing.

John Randolph of Key’s Commercial Mortgage Group arranged the permanent financing through the FHA 232/223(f) mortgage insurance program. Henry Alonso and Brandon Taseff of Key’s Healthcare Group structured the original bridge loan for the sponsor. The FHA refinance loan proceeds were used to pay down a portion of the existing KeyBank bridge loan which funded the initial acquisition, and subsequent recapitalization, of a pool of healthcare facilities located in the northeast.

The Ensign Group Closes on HUD-Insured Loan Portfolio

The Ensign Group, Inc. (Nasdaq:ENSG) has announced that several of its subsidiaries have recently completed a $112 million portfolio financing with low, fixed-rate loans amortized over 30- or 35-year terms, and secured by mortgages on 17 of the 63 properties owned by Ensign subsidiaries.

The loans were arranged by Lancaster Pollard Mortgage Company, LLC, and insured by the Department of Housing and Urban Development (HUD). The loan will be used to pay down previously drawn amounts on Ensign’s revolving line of credit, as well as fund acquisitions, renovate and upgrade existing facilities and future facilities and cover working capital needs for other business use.

Based in Mission Viejo, California, the Ensign Group is the parent company of the Ensign brand of skilled nursing, rehabilitative care services, home health care, hospice care and assisted living companies.

Navion Senior Solutions & NorthView Partners Close Deal to Develop 152-Unit Senior Housing Community in Apex

Raleigh-Durham, North Carolina-based Navion Senior Solutions and NorthView Partners have closed financing for the development of The Reserve at Mills Farm, which will offer a 152-unit continuum of senior care options including independent living, assisted living and memory care.

The Reserve at Mills Farm is developed in partnership with health care real estate investment trust (REIT) Welltower, Inc (NYSE: HCN). In addition to Welltower, the community is being developed in partnership with investors who have longstanding ties to the real estate industry in North Carolina.

Validus Senior Living Closes $117.5 Million Revolving Credit Facility with SunTrust

Validus Senior Living, a Tampa-based operator of independent living, assisted living, memory care and skilled nursing facilities has closed a five-year, $117.5 million syndicated revolving line of credit with Atlanta-based investment and banking firm SunTrust Robinson Humphrey.

The funds are supporting the acquisitions of two new Inspired Living communities: Inspired Living at Ocoee in Florida and Inspired Living at Kenner in Louisiana. Inspired Living communities is Validus’ brand of senior living communities. Both locations will offer assisted living and memory care.

A third community, Inspired Living at Alpharetta, in Alpharetta, Georgia, is expected to close in the coming weeks. SunTrust Robinson Humphrey served as the lead arranger and bookrunner for the deal, while SunTrust Bank acted as the lead participant and administrative agent.

The two initial acquisitions will add more than 250 units to Validus’ existing portfolio in Florida and Louisiana, with more growth expected in Atlanta, Houston, and Lewisville, Texas.

Through these acquisitions, the company expects to add more than 200 associates. Each future acquisition will employ an additional 100 associates.

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