NEW YORK CITY — Greystone, a New York-based national real estate finance company that serves the seniors housing industry, has appointed Hafize Gaye Erkan as its chief executive officer (CEO). Erkan’s executive responsibilities will commence in September 2022. She will report to Steve Rosenberg, the former CEO who will continue to serve as the Executive Chairman of the Board. Erkan most recently served as co-CEO, president and board member at publicly traded First Republic Bank, where she helped deliver growth in wealth management, deposits and total assets. Prior to joining …
By Russell Phillips, Regions Bank As a real estate asset class serving the nation’s elderly population, the seniors housing sector was faced with serious challenges during the height of the COVID-19 pandemic. Residents and staff of senior living facilities faced increased risk of illness, various restrictions and an unfortunate loss of life was widely reported in the media. At the same time, many families chose to keep older parents or relatives living with them rather than residing in senior facilities. Combined, these factors led to an overall reduced demand for …
TEMECULA, Calif. — Capital Funding Group (CFG) has provided a $32.9 million construction loan for the ground-up development of Varenita of Temecula. The 108-bed assisted living and memory care facility is located in Temecula, within Riverside County between Los Angeles and San Diego. The borrower and developer is Griffin Living. Brightwater Senior Living will operate the facility upon completion. The financing features a Commercial Property-Assessed Clean Energy (CPACE) structure, which allows building owners to borrow money for energy efficiency, renewable energy, or other projects and make repayments via an assessment …
Bridge lending spikes as owners and operators look for short-term solutions coming out of the pandemic, which could portend an increase in permanent and agency loans. By Jeff Shaw Although senior living occupancies remain low and have been slow to recover in the wake of the COVID-19 pandemic, many owners and operators are looking to execute long-term business plans. Whether for renovations, expansions or simply operating capital to ride out the pandemic’s long-term effects, borrowers need bridge loans to achieve this goal. Average private-pay seniors housing occupancy increased 20 basis …
Mounting financial pressures on operators, combined with rising interest rates, leads to protracted transaction process. By Matt Valley A significant drop-off in the production of HUD 232/223(f) loans — popular with borrowers acquiring or refinancing skilled nursing, assisted living and memory care facilities — has lowered expectations for overall deal volume in the HUD LEAN Section 232 mortgage insurance program for fiscal year (FY) 2022. The consensus among HUD lenders is that the total dollar amount in annual loan closings will fall short of the $3.9 billion notched in FY …
MT. PLEASANT, S.C. — Northmarq has arranged $39 million in permanent financing for Merrill Gardens at Carolina Park, a 158-unit independent living, assisted living and memory care community in Mt. Pleasant. The community resides on 14.9 acres in Carolina Park, a master-planned community 16 miles northeast of Charleston. Built in three phases from 2018 to 2021, the main building was completed in 2018 with 130 units; 28 cottages were delivered in 2019; and in 2021, a swimming pool and fitness center addition were completed. The loan was structured prior to …
ROCKWALL, Texas — Greystone has provided $12.8 million in bridge financing for the acquisition of Highland Meadows Health & Rehab, a 120-bed skilled nursing facility in Rockwall, located on Lake Ray Hubbard northeast of Dallas. DJ Elefant, vice president at Greystone, originated the financing on behalf of HACO Properties LLC. Helios Healthcare Advisors served as the debt broker in the transaction. The nonrecourse bridge financing from Greystone features a 24-month term with one 12-month extension option and interest-only payments for the full term. Greystone has already begun working with the …
BELLEVUE, Wash. — Northmarq has arranged a $33 million refinancing for The Gardens at Town Square, a seniors housing community located in downtown Bellevue. The 168-unit community is in a five-story, mid-rise building built in 1998 and includes a mix of independent living, assisted living and memory care. The borrower is ERA Living. The loan was structured with a 10-year term, fixed rate and 30-year amortization, with one year of interest-only payments. Loan proceeds retired $20.4 million in existing agency debt and returned equity to the borrower. Stuart Oswald, senior …
ARKANSAS and MISSISSIPPI — VIUM Capital has provided $74.5 million in bridge-to-HUD financing for the acquisition of 11 skilled nursing facilities. One of the assets is located in Mississippi and the rest are in Arkansas. Three different sellers sold the properties to an undisclosed buyer. Further information on the buyer, seller and portfolio was not disclosed.
GUTHRIE CENTER, Iowa — Cambridge Realty Capital Cos. has provided a $5.3 million HUD Lean loan to refinance The New Homestead Senior Living Community, an 89-bed skilled care, assisted living and independent living facility located in Guthrie Center. The fully amortized, 35-year loan was provided for the owner, an Iowa limited liability company, using the HUD Section 232 pursuant to Section 223(f) funding program. Cambridge Realty Capital Ltd. of Illinois, the Cambridge business that specializes in underwriting FHA-insured HUD loans, underwrote the transaction. Located approximately 50 miles west of Des …