Seniors Housing Business

APR 2018

Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.

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Page 27 of 48 27 April 2018 n Seniors Housing Business © 2018 BOK Financial Corporation. Services provided by BOKF, NA. Member FDIC. BOKF, NA is a subsidiary of BOK Financial Corporation. *Transaction included $1.1 million of junior debt financing from BOK Financial Capital Corporation, a subsidiary of BOK Financial Corporation. Banking Services Designed For Healthcare From A Partner With Experience You Can Trust. BOK Financial has experienced professionals who can help you balance growth and expansion while providing capital support. Multi-facility Senior Housing Operator Acquisition of a portfolio of properties $135 million loan syndication Maryland Skilled Nursing Facility Term loan & revolving line of credit for acquisition $23.6 million New York Multi-facility Senior Housing Operator Acquisition, finance & bridge loan for seven properties $20.5 million Colorado Real Estate Investment Firm Portfolio refinance for three senior living facilities $7.7 million Ohio Assisted Living Facility Owner/ Operator Refinance two senior living facilities $23 million Colorado & Oklahoma Skilled Nursing Facility Owner/Operator Acquisition of Senior Housing Campus $6.8 million* Missouri Recent Healthcare Client Credit Solutions 918.588.6405 | says Haller at Avamere. O Canada! While China is the biggest U.S. trading partner, Canada comes in a close second and has always been a steady source of capital for seniors housing here in the states. Toronto-based Invesque (TSX: IVQ) owns a growing portfolio of healthcare real estate assets in the U.S. and Canada. The com- pany changed its name in Janu- ary from Main- street Health Investments. Most of the company's oper- ations are based in Carmel, Ind. But the com- pany was listed on the Toronto stock exchange to tap the Cana- dian capital markets, accord- ing to CEO Scott White. Canadian investors account for about one-third of the company's capital. "We intend to build a highly diversified portfolio," he says. Invesque recently completed the $425 million acquisition of Care Investment Trust, growing its port- folio to 87 properties. "We are just getting started," says White. Canada-based Réseau Sélection has its sights on the U.S. market. The company owns and manages 35 senior living buildings in Can- ada with 11,000 units. Eight new projects are under construction. By later this spring, the company will have 20 new projects with 3,500 units under construction, valued at $700 million. Réseau Sélec- tion has three product types: mid-rise build- ings for subur- ban sites; high- rises for city settings; and master-planned c o m m u n i t i e s that include active adult housing. PSP Investments, the large Cana- dian pension fund, is a financial partner of Réseau Sélection. About 80 percent of Réseau Sélection's existing portfolio is comprised of independent living or what's called "Montreal-style" apartments, according to Gaetan Cormier, senior vice president of international development at Réseau Sélection, Laval, Quebec, a suburb of Montreal. The remainder of the units is a mix of assisted liv- ing and condominiums. Units have a range of pricing: affordable, mid-priced and high- end. All units have full-size kitch- ens. Services, including meals, are purchased a la carte by residents as needed. "We have plans to branch out to the U.S.," says Cormier. "We are identifying the best markets for us." The U.S. is appealing not only because of its proximity to Canada, but also because it has a relatively low penetration rate, says Cormier. About 10 per- cent of qualified U.S. seniors age 75 or older live in seniors housing. By comparison, about 18 percent of seniors in Quebec live in seniors housing. About 18 years ago, only 5 percent of Quebec seniors lived in seniors housing, says Cormier. "We have developed a unique product oriented toward an active lifestyle," says Cormier. He believes, with some modifications to the company's "Montreal-style" product, that the U.S. market will embrace the concept. The company currently has a 30-story high-rise under construc- tion in Laval. Construction will begin on another high-rise in the Montreal area this spring. The build- ings are comprised of 200 indepen- dent living units, 40 assisted liv- ing units and 40 condominiums for sale. "This is our proto- type for urban environments," says Cormier, an architect by training. Réseau Sélec- tion plans to first target the East Coast of the U.S. and then the West Coast. Cormier thinks it will take about three years to identify the best markets. He prefers cit- ies where the company can build at least five projects. Says Cormier, "We want to make sure we can jus- tify the time and energy required to build in an area." n Gaetan Cormier Réseau Sélection Ryan Maconachy HFF Ryan Haller Avamere Health Services Aron Will CBRE

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