Transactions and financing: Lifespace sells 2 CCRCs; Cano Health secures $ 4.4 billion PSPC deal
Lifespace Communities continues to make progress in its efforts to rationalize its portfolio for growth.
The West Des Moines, Iowa, nonprofit community retirement operator has announced that it is handing over ownership and management of two campuses – Deerfield, in Des Moines, Iowa; and Grand Lodge at the Preserve in Lincoln, Nebraska – at Immanuel Communities.
Immanuel, based in Omaha, Nebraska, owns and operates 16,55+ active living, independent living, assisted living and long term care communities across nine campuses. In addition, its Immanuel Pathways line operates three PACE (Program of All-Inclusive Care for the Elderly) centers in Iowa and Nebraska.
Terms of the contract are not disclosed. Lifespace did not return a request for comment from Senior Housing News.
Cano Health, Jaws Acquisition finalizes affiliation; will start trading on the New York Stock Exchange
Cano Health, a value-driven primary care provider for seniors and underserved communities, has entered into a business combination with Jaws Acquisition Corp. (NYSE: JWS). The affiliation, which was approved by Jaws shareholders at a special meeting on June 2, will enable Cano Health to realize its vision to become the U.S. leader in primary care and accelerate the growth of the company.
Effective June 4, the Class A common shares of Cano Health will trade on the New York Stock Exchange under the symbol “CANO”. The company announced the deal with Jaws in November 2020, valuing the company at around $ 4.4 billion and providing $ 935 million to grow and repay debt.
Dr Marlow Hernandez will continue to lead Cano Health as CEO and Chairman of the Board, alongside the company’s management team: Clinical Director Dr Richard Aguilar; chief financial officer Brian Koppy; Chief Compliance Officer and General Counsel David Armstrong; Chief Strategy Officer, Dr John McGoohan; Chief Population Health Officer Pedro Cordero; Jennifer Hevia, Director of Human Resources; President of the Cano Gina Portilla Medical Centers; President of Healthy Partners Bob Camerlinck; Senior Vice President of Acquisitions Joel Lago; and brand manager Barbara Ferreiro.
As a result of the business combination, Cano Health received gross proceeds of approximately $ 1.49 billion, of which approximately $ 690 million was in cash held in Jaws’ trust account and $ 800 million from investors. in private placement (PIPE), including Barry Sternlicht and funds affiliated with Fidelity Management & Research Company LLC as well as funds and accounts managed by BlackRock, Third Point and Maverick Capital.
Sales and operator transitions
NewCourtland acquires senior apartment building in Philadelphia
NewCourtland Senior Services, a Philadelphia-based nonprofit dedicated to providing services and care to the elderly, has acquired Burholme Senior Apartments, a 62-unit freestanding apartment building where each resident’s rent is capped at 30% of his monthly income. The property was previously under the management of Wesley Enhanced Living.
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Cushman & Wakefield completes 3 transactions
Cushman & Wakefield’s (NYSE: CWK) Senior Housing Capital Markets team achieved $ 250 million in senior housing and long-term care sales volume in April 2021.
This activity consisted of advising Lytle Enterprises on the sale of Broadway Proper, a 232 unit independent and assisted living community located in Tucson, Arizona. The property was acquired by a joint venture between Harrison Street Real Estate and Stellar Senior Living. This team also advised the buyer on their acquisition financing, by obtaining non-recourse bridging financing from a national bank.
In addition, Cushman & Wakefield advised a large public REIT on the divestiture of two assets. The first asset, Brookdale West Bay, is an assisted living and memory care community located in the Providence Rhode Island market and was acquired by an east coast private equity firm. The second asset, Sienna at Otay Ranch, is a community of 111 assisted living and memory care units that opened in 2018.
Vice President Richard Swartz, Executive Managing Director Jay Wagner, Managing Director Aaron Rosenzweig and Directors Dan Baker and Sam Dylag were involved in the transaction.
Senior Living Investment Brokerage Managing Directors Jason Punzel, Brad Goodsell and Vince Viverito have closed the sale of a 95-unit / 107-bed assisted living and memory care center in Ashland, Saskatchewan. Oregon. The buyer is a Utah-based investor with other Texas senior housing communities. The seller is a regional owner / operator looking to exit or focus on their core assets. The buyer plans improvements for the community.
Sienna Senior Living Closes $ 125 Million Senior Debt Offer
Sienna Senior Living (TSK: SIA) completed its previously announced $ 125 million Series C senior unsecured debentures. The placement was led by TD Securities, BMO Capital Markets and CIBC Capital Markets, in as principal agents and joint bookkeepers. The debentures bear a nominal interest rate of 2.82% per annum and will mature on March 31, 2027.
Sienna will use the net proceeds of the offering to repay existing debt and for general corporate purposes.
BAW Development Secures $ 94 Million Construction Funding for New Jersey Redevelopment
BAW Development has entered into a $ 94 million financial package for the redevelopment of the Hinchliffe Stadium Neighborhood Restoration Project (HSNRP), in Paterson, NJ, which includes Hinchliffe Stadium, one of two remaining stadium structures that housed a team of Negro League baseball. The redevelopment includes the construction of a six-storey, 75-unit affordable seniors housing building.
The funding comes from a combination of private loans, tax credits and other vehicles, including a $ 60 million construction loan from Goldman Sachs and $ 10 million in tax credit on the new market and a historic federal tax credit from US Bancorp Community Development Corporation, US bank tax fairness. and community development subsidiary.
The funding also includes $ 21 million in new market tax credit allocation from four Community Development Entities (CDEs): Community Loan Fund of New Jersey, Consortium America, RBC Community Development and USBCDE. The Passaic County Improvement Authority also issued a bond in support of the project, purchased by Goldman Sachs with its construction loan, which serves as a bridge loan for New Jersey Economic Growth and Redevelopment (ERG) credits.
All funding was managed by BAW’s redevelopment partner, RPM Development Group.
Cushman & Wakefield arranges $ 61 million in construction financing
Cushman & Wakefield’s Senior Housing Capital Markets team secured two construction loans totaling $ 61 million.
The first transaction was a $ 32 million construction loan for the development of The Waters of Pewaukee, a community of 161 independent living, assisted living and memory care units located in Pewaukee, Wisconsin. The loan was provided by a national health care lender and the borrower was a joint venture between The Waters and a private equity partner.
Cushman & Wakefield also entered into a $ 29 million construction loan on behalf of a joint venture between Avenida Partners and LaSalle Investment Management for a 154 unit active adult class A project located in the Denver metro area.
CBRE secures $ 43 million in construction funding
CBRE Senior National Vice President for Housing Aron Will, Senior Vice President Austin Sacco and Vice President Matthew Kuronen partnered with Executive Vice Presidents John Parrett and Peter Marino of the Debt and Structured Finance team from CBRE Chicago in a five-year, $ 43 million construction loan for an adult community under construction in the Chicago market.
The loan is variable rate with 42 months interest only through a national bank.
Fitch announces bond rating updates on 2 CCRC
Fitch Ratings announced the following bond rating updates:
- Fitch downgraded the $ 29.6 million Series 2013 Income Bond and $ 19.4 million Series 2014A Income Bond rating issued by the New Jersey Economic Development Authority (NJEDA) on behalf of United Methodist Homes of New Jersey, now doing business as United Methodist Communities, at “BB +” of “BBB-“. The rating outlook has been revised from stable to negative. Key rating factors include weak income defense due to low occupancy of self-catering units, declining liquidity and operations, and moderate debt burden.
- Fitch confirmed the “A-” issuer default rating to Maine Life Care Retirement Community, Inc., doing business as Piper Shores. The rating outlook is stable. Key scoring factors include being a destination retirement community with a nationwide sales circulation supporting strong demand, an ongoing expansion project, and consistent cash flow offsetting weaker operations.
WellSky Foundation awards $ 50,000 grant to non-profit organization
The WellSky Foundation donated $ 50,000 to Second Wind Dreams, a nonprofit organization recognized worldwide for its Virtual Dementia Tour sensitivity training program and its commitment to changing perceptions of aging through the fulfillment of dreams. Second Wind Dreams will use the funding to provide scholarships and training for caregivers in underserved elderly care communities.
VDT is an evidence-based program that allows caregivers to directly enter their patients’ perspective by temporarily altering their physical and sensory abilities, and mimicking changes associated with cognitive deterioration.