Transactions and Financing: Brookdale Completes Sale of Home Health, Hospice Arms; Vicar’s Landing secures $ 116 million bond financing

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Brookdale Senior Living (NYSE: BKD) has completed the previously announced sale of its home care, palliative care and outpatient therapy business to HCA Healthcare. The sale was first announced in February.

Under the terms of the deal, the Brentwood, Tennessee-based senior housing operator sold an 80% stake in Brookdale Healthcare Services to HCA for $ 400 million. He received $ 300 million in cash at closing, less transaction costs and purchase price adjustments.

“This transaction strengthens Brookdale’s financial position, continues to provide our residents with access to high quality services and offers significant growth opportunities for BHS,” said Brookdale President and CEO Cindy Baier, in a press release.

Affiliations

Blueprint lands new operator for senior housing community in California

Blueprint Healthcare Real Estate Advisors Executive Managing Director and Co-Founder Christopher Hyldahl and Senior Partner Scott Frazier conducted a confidential process to find a new operator for a senior housing community in Culver City, Calif., Offering services in independent living and assisted living. The newly selected operator seeks to expand its regional footprint in the State.

Blueprint worked with the owner and operator assisting with contract negotiations and due diligence.

The Arbor Company adds 2 Illinois communities

The Arbor Company has added two suburban Chicago senior housing communities to its portfolio: Arbor Terrace Highland Park, a community in Highland Park, Ill., Comprising 64 independent and assisted living units and 22 care units. of memory; and Arbor Terrace Glenview, with 59 independent and assisted living apartments and 24 memory care units. The properties join the two other Chicago senior housing communities operated by Arbor: Summit of Uptown in Park Ridge and Arbor Terrace Naperville.

Sales and operator transitions

Blueprint completes 3 transactions

Blueprint Healthcare Real Estate Advisors made the following sales:

  • Executive Managing Director and Co-Founder Ben Firestone and Senior Director Jacob Gehl facilitated the $ 31 million sale of a memory care portfolio totaling 96 units in Midlothian and Virginia Beach, Va. The sale was initially put on hold due to Covid-19, but Blueprint continued to work closely with the seller to understand the key goals and the underlying motivation to sell. The buyer was ProMedica, which added communities to its Arden Courts memory care line, renaming communities as Arden Courts Richmond and Arden Courts Virginia Beach.
  • Firestone and Managing Director Dan Mahoney facilitated the sale of a self-catering residence and 108-unit assisted living facility in Washington state, with a focus on middle-market seniors. Terms of the contract are not disclosed. The seller turned to Blueprint for advice on divesting the property before closing an investment fund. The buyer anticipates modest capital expenditures to refresh living units and common areas and increase occupancy with private residents.
  • Senior Managers Brooks Blackmon and Amy Sitzman, along with Senior Partner Giancarlo Riso, were the only brokers in the sale of a 72-unit assisted living facility in the Columbia, South Carolina market, which recently suffered a million dollar renovation. The faculty is located less than a mile from Lexington Medical Center, one of the region’s largest hospitals. The buyer and seller have an existing relationship, and the familiarity between the parties resulted in the transaction closing within 90 days of signing a letter of intent.

Cushman & Wakefield Hosts $ 15 Million Sale of 2 Massachusetts Senior Housing Sites

Cushman & Wakefield (NYSE: CWK) represented Barberry Homes in the $ 14.55 million sale of two licensed lots in Millis and Natick, Mass. To Anthology Senior Living. The Natick site, when completed, will include 86 assisted living and memory care units on 5.53 acres and the Millis site will include 105 independent living, assisted living and memory care units on 7,697 acres.

Cushman & Wakefield’s National Seniors Housing Team – Vice President Rick Swartz, Executive General Manager Jay Wagner and Director Sam Dylag – led the transaction on behalf of Barberry Homes.

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Funding

Ziegler closes $ 116 million financing for Vicar’s Landing

Ziegler closed on $ 115.63 million in Series 2021A and Series 2021B bonds for Life Care Ponte Vedra, doing business as Vicar’s Landing, a CPAB in Ponte Vedra Beach, Fla. The community occupies a 24.3-acre site within Sawgrass, a 4,800-acre private resort and residential community on Ponte Vedra Beach, approximately 20 miles southeast of Jacksonville.

The Series 2021A Bonds were tax-exempt fixed rate bonds rated Fitch “BB +” and the Series 2021B Bonds were drawing bonds directly placed with PNC Mortgage Corporation. The proceeds of the Series 2021 Bonds will be used with other funds available to repay the Series 2014A & B Bonds and the Series 2016 Bonds, finance part of the cost of an expansion project, fund a debt service reserve and capitalized interest, and pay the cost of issuing Series 2021A bonds.

Vicar’s Landing plans to develop, own and operate an expansion of the community that will be known as Vicar’s Landing at Oak Bridge.

Outlook Notes

Fitch announces bond rating updates on 4 CCRC

Fitch Ratings announced the following bond rating updates:

  • Fitch has confirmed the issuer’s default “A-” rating for RiverWoods, a life plans community in Exeter, New Hampshire. The rating outlook is stable. Additionally, RiverWoods at Exeter $ 52 million in debt that is placed directly with banks that are not rated by Fitch, but the debt is incorporated into the IDR. The main scoring factors include a strong market position, a high occupancy rate of independent housing and an expected return to stable operations after Covid.
  • Fitch has assigned an issuer default rating of “BB” and confirmed a “BB” rating on $ 120 million of 2017 Series A and B Senior Income Bonds issued by the Philadelphia Authority for Industrial Development on behalf of by Wesley Enhanced Living. The rating outlook is negative, reflecting continued pandemic pressures on the provider’s operational and financial profiles in fiscal 2020 and 2021. Notably, Wesley’s strong exposure to skilled nursing income and government payers, poor historical operational performance and adequate liquidity position provide financial cushion at the current rating level to absorb protracted disruptions in operations, census or cash flow levels. However, the rating assertion reflects the supplier’s strong historical demand metrics, the diversification of revenues from five separate CCRC campuses, the recently completed campus renovation and repositioning projects, and the receipt of a PPP loan of 7. $ 1 million in April 2021, which management expects to be fully forgiven. Additionally, Wesley has yet to release its audited financial statements and covenants calculations for fiscal 2020, which were due on December 31, 2020, and Fitch believes the supplier may be violating its 1.2x rate covenant. . A one-time violation would result in a consultant calling or a detailed report of needed improvements, and this would be considered negative credit and reflected in the maintenance of the negative outlook.
  • Fitch has assigned a “BB +” rating of $ 26.35 million to Series 2021B-1 and 2021B-2 bonds issued by Florida Development Finance Corporation on behalf of the Mayflower Retirement Center in Winter Park, Florida. The rating outlook is stable. Key scoring factors include a good market position in a competitive service area, a mid-range operating risk assessment, high levels of recent capital improvements and a consistent financial profile despite moderate stress.
  • Fitch has assigned a “BBB” rating to $ 80.9 million in 2021 series residential care facility income and repayment bonds to be issued by the Virginia Small Business Financing Authority on behalf of LifeSpire of Virginia. In addition, Fitch assigned an issuer default rating of “BBB” and confirmed a “BBB” rating on $ 34.7 million in the 2014A series residential care facility income repayment obligations issued by the Industrial Development Authority of Botetourt County, Virginia; $ 74.9 million in 2016 Series Residential Care Facility Revenue Bonds issued by the Economic Development Authority of the City of Newport News, Virginia; and $ 49.8 million in Series 2017C Residential Care Facility Income Bonds issued by the Economic Development Authority of Henrico County, Va., on behalf of Lifespire. The rating outlook is stable. Key scoring factors include stable demand and pricing characteristics in multiple markets, expected stability of the supplier’s financial profile, and a history of adequate cost management.
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