Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.
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8 www.seniorshousingbusiness.com Seniors Housing Business n February-March 2015 Prudential refnances Class A community in Maryland Kensington, Md. — Prudential Mortgage Capital Co., the com mercial mortgage lending busi ness of Prudential Financial Inc. (NYSE: PRU), has provided a $41 million loan to Fountain Square Properties to refnance Kensing ton Park, a Class A independent living, assisted living and mem ory care community located in Kensington, Md. Tom Goodsite, managing director, and Trace Wilson, an associate, were the leads on the transaction. The $41 million loan for Ken sing ton Park was originated through Freddie Mac's Senior Housing program. The property consists of 61 independent living units, 52 assisted living units and 51 memory care units and is situated on more than eight acres, just north of the I495 Beltway in Montgomery County. Kensington Park is managed by an affliate of its owner, Fountain Square Properties. HCN completes $1.5 billion stock ofering Toledo, Ohio — Health Care REIT Inc. (NYSE: HCN) has com pleted its underwritten public offering of 17 million shares of common stock at $75.50 per share. HCN granted the underwriters an option to purchase up to an additional 2.5 million shares dur ing the next 30 days. HCN estimates that the gross proceeds from this offering are $1.5 billion. The company intends to use the net proceeds from this offering to repay advances under its primary unsecured credit facility and for general corporate purposes, including investing in healthcare and seniors housing properties. Goldman, Sachs & Co., Bar clays, UBS Investment Bank, Wells Fargo Securities, BofA Merrill Lynch, KeyBank Capital Markets and Morgan Stanley are acting as joint bookrunning managers for the offering. Health Care REIT announces frst quarter investment pipeline of $2.2 billion Toledo, Ohio— Health Care REIT, Inc. (NYSE:Health Care REIT Inc. (NYSE:HCN), based on invest ments closed thus far in the frst quarter and potential investments with preliminary documentation, anticipates completing approxi mately $2.2 billion of investments in the frst quarter of 2015. HCN expects the aggregate investment amount to be com prised of approximately $1.1 billion of seniors housing oper ating investments, $664 million of triplenet investments and $460 million of loan investments of which the majority is with Genesis Healthcare. HCN expects the aggregate investments to be approximately 52 percent in the United States, 30 percent in the United Kingdom and 18 percent in Canada. According to HCN, about 81 percent of these investments are expected to involve existing port folio partners including Belmont Village, Benchmark Senior Liv ing, Brandywine Senior Living, Cascade Living Group, Genesis Healthcare, Merrill Gardens, HCN's Canadian partner Revera and HCN's UK partners Avery Healthcare and Signature Senior Lifestyle. The aggregate anticipated investment amount includes approximately $156 million of secured debt that HCN expects to assume at an average annual interest rate of 3.9 percent. MidCap Financial refnances healthcare facilities in Wisconsin and Michigan Bethesda, Md. — MidCap Financial, a specialty fnance frm focused on the middle market in North America and Europe, has closed a $50 million trans action with Rice Health Care Centers Inc. The loan is secured by 22 seniors housing and skilled nursing facilities on 16 distinct campuses throughout Wisconsin, and one in Michigan. At the time of the refnancing, Rice entered into a lease with KBWB OperationsRice LLC, a newly formed entity of Atrium Health and Senior Living. Under the lease agreement, Atrium operates the facilities and has a purchase option it may exercise on or before Dec. 31, 2016. In addition to the mortgage term loan for Rice, MidCap pro vided Atrium with over $8 mil lion of working capital fnancing secured by accounts receivable. Financing was arranged by Kevin Breslin of Atrium. MidCap Financial refnances assisted living/memory care community in Fort Pierce, Fla. Fort Pierce, Fla. — MidCap Financial, a specialty fnance frm focused on the middle market in North America and Europe, has closed an $18.25 million term loan with Capital Health Group, LLC. The loan, secured by a frst mortgage on an existing 94unit/124bed assisted liv ing/memory care facility in Fort Pierce, Fla., was structured with a $17 million initial funding, $250,000 interest reserve, and $1 million earnout. The loan refnanced existing debt and provided a small divi Finance Continued on page 10 Kensington Park in Kensington, Md., includes 52 assisted living units and 51 memory care units.. NHI closes $154.5 million loan to expand Washington community Issaquah, Wash. — National Health Investors (NYSE: NHI) has fnalized a previously disclosed agreement to lend up to $154.5 million to recapital ize and fnance the expansion of Timber Ridge at Talus, an entrancefee senior living com munity in Issaquah. Serving the greater Seattle area, Timber Ridge at Talus is currently 95 percent occupied and the new expansion is over 80 percent presold. The existing campus was built in 2008 and has 184 independent living apartments and 36 transitional care beds. Expansion is expected to begin upon closing and will add 145 independent living apart ments, 26 assisted living and memory care apartments and nine transitional care beds, in addition to a swimming pool, dining room, ftness center and other amenities. "This Class A community is managed by Life Care Ser vices, a Life Care Cos. subsid iary which is one of the most respected, experienced and largest operators of continuing care retirement communities," says Justin Hutchens, NHI's CEO and president. "NHI is thrilled with the opportunity to make this highquality investment." Timber Ridge at Talus in Issaquah, Wash., is undergoing a $154.5 million expansion, which will include the swimming pool pictured in this rendering.