from Senior Housing News

Cambridge Realty Capital recently announced a series of financing transactions for California assisted living and skilled nursing properties totaling over $26 million dollars.  Cambridge has been actively financing skilled nursing homes and assisted living facilities in California for over 15 years and has recently increased its focus in Southern California with the addition of Hymie Barber who manages the regional presence for the company.  Some of the recent financing activities include:

• a $14 million, three-year conventional mortgage loan for a portfolio of three assisted living properties located in Glendale and Valley Village, California, the Glen Park East Retirement Community and Glen Park West Retirement Community in Glendale, California., 12 years ago in 1998.  The third property included in the transaction is the Laurel Canyon Retirement Community in Valley Village.
• a $4.08 million FHA-insured HUD Lean loan to refinance Wyndham Residence, a 58-unit assisted living property in Arroyo Grande, California
• a $8.6 million FHA-insured HUD Lean mortgage loan for Apple Valley Christian Care Center, a 99-bed skilled-care nursing facility in Apple Valley, California

“The demographics and demand for senior living finance and capital options drives our presence in California based upon the number of operators and facilities there,” said Jeffrey Davis, Chairman of Cambridge Realty Capital. “We also find that the relationship between the providers and the state government in Sacramento is extremely positive which helps drive overall demand for skilled nursing facilities.”

[seniorhousingnews.com]

Developer Paul McKee’s $14.3 million project to renovate the historic Clemens House in north St. Louis into senior housing received approval for up to $10 million tax-exempt bonds from the state.

At its meeting last week, the Missouri Housing Development Commission approved the bonds, which will be sold in late October or early November so construction can start by the end of the year, said Bill Ulm, the commission’s director of rental production.

Another set of permanent 30-year bonds for up to $100 million will be sold after the project’s completion, he said.

The 24-month project will create 30 construction jobs and turn the decaying 140-year-old mansion on Cass Avenue into 49 units for seniors as well as a museum.

The Clemens House project is part of McKee’s larger $8.1 billion planned redevelopment of north St. Louis.

A judge’s ruling last month striking down a St. Louis ordinance that authorized the city’s $390 million financial package for the Northside project has no impact on the bonds approved Friday, Ulm said.

“Clemens House is an important project for the city of St. Louis,” he said. “We believe the way it’s structured, it will be financially feasible.”

McKee wants to partner with homebuilders and other developers on the 1,500-acre proposal to build up to 4.5 million square feet of office space, 1 million square feet of retail space, 2,200 new single-family homes and 7,800 apartments over the next two decades in north St. Louis. McKee has said he isn’t walking away from the project and is seeking a retrial, but the development’s future is clouded without a financial package from the city.

Also at last week’s Missouri Housing Development Commission meeting, State Treasurer Clint Zweifel’s proposal to devote $127 million — or a third of the state and federal funding — on housing for the homeless and mentally ill was rejected. But the commission signed off on a modified version of the plan that calls for two housing developments within fiscal 2011 for the mentally ill and homeless, as well as the physically disabled and foster children.

[stlouis.bizjournals.com]

Foster City-based Mid-Peninsula Housing started construction today on Fair Oaks Plaza, a $37.6 million senior housing development in Sunnyvale that is being partly bankrolled through an investment by Google.

The project at 660 S. Fair Oaks Ave. will consist of 124 affordable rental homes for low and very low-income seniors. The development was funded through a wide range of public and private funding sources including Google, which invested $19 million through the purchase of Low-Income Housing Tax Credits.

The tax credits are being syndicated and managed by Union Bank. Fair Oaks Plaza is located eight miles from Google’s headquarters.

The project marks Google’s first investment in affordable housing.

“Google recognizes the challenges associated with developing affordable housing in California and is proud to help meet this need by providing financing for some of the region’s developers,” said Brent Callinicos, Vice President and Treasurer of Google.

The development is expected to open in summer 2011.

The community will offer a full range of services and is located next to a County medical clinic. It is within a half mile of the Sunnyvale Senior Center, grocery stores, a pharmacy, a public park and multiple bus lines. Amenities include a landscaped courtyards, a fitness center and a community center with a computer lab, a lounge and a kitchen.

“Mid-Pen is proud to be the recipient of Google’s first investment in affordable housing.” said Matthew Franklin, president of Mid-Peninsula Housing. “We were founded by David Packard and other Silicon Valley pioneers forty years ago. We are grateful that today’s leading entrepreneurs like Google continue to support our work and we applaud their vision to invest in their region by financing high-quality affordable housing like Fair Oaks Plaza.”

Additional financing for the $37.6 million development was provided by the City of Sunnyvale, Housing Authority of Santa Clara County, California Department of Housing and Community Development, County of Santa Clara Department of Mental Health, CalHFA –Mental Health Services Act and Federal Stimulus Funds from the American Recovery and Reinvestment Act.

[sanfrancisco.bizjournals.com]

Construction will begin next month on a large senior care facility planned for central Fishers.

Bloomington-based CarDon and Associates is developing the 108-bed facility, which will offer skilled nursing, assisted living and memory care, on a 33-acre site on the northeast corner of the Cumberland Road and the 116th Street intersection, just behind a Chase bank.

CarDon hopes the $19.35 million facility will be open by January 2012, Chief Operating Officer Connie Brewer said in an e-mail.

The company plans to build a second phase that could include independent living and medical office space.

The market will dictate when the next phase would be built, but it could cost between $20 million and $40 million, Brewer said.

At least two other senior care projects are under way in Fishers.

Construction on a nursing home on Allisonville Road between Eller Road and 106th Street is nearing completion. Fishers approved zoning earlier this year for an assisted living facility that would cater to older patients with dementia. That facility will be located on the north side of 116th Street, about a half-mile west of Brooks School Road.

[indystar.com]

The Blake at Malbis, an 85,000-square-foot assisted living and memory care complex, will open in mid-September on U.S. 90, east of Ala. 181 in Daphne.

Thirty of the complex’s 108 units are reserved, according to Natoshia Gallant, director of community relations at The Blake.

There are 72 assisted living apartments. A separate Alzheimer care facility has 36 units.

The $17 million, two-story project features a modern design with high ceilings, lots of windows, wrought-iron balconies, wood shutters and a large courtyard. An adjacent 5-acre wooded tract means room for expansion.

“A lot of assisted living places have traditional construction, and we wanted to do something totally different,” Gallant said.

The facility will employ 50 to 60 full-time workers, according to one of the developers, Andy Yarborough of Gulf Shores.

Typically, monthly rents at senior communities range from $1,500 to $3,400 depending on the size of the unit and services provided, according to senior lifestyle experts. Prices at The Blake start at $2,700 a month, according to Gallant.

The nearest assisted living facility is the 60-unit Catherine Place on Baldwin County 13 in Daphne, a non-profit, faith-based community owned by Mercy Medical.

Like many facilities, Mercy Medical is trying new things to attract residents in a tough economy, according to Donna Wilhelm, director of marketing. “We are now pet friendly,” she said. Residents are allowed to keep their pets when they move in.

The Blake has also reserved several units for pet owners.

Another way The Blake plans to bring people to the complex is by opening the dining room to the public. For example, a four-course lunch averages $8, Gallant said.

The Blake’s services include a 24-hour, on-site nursing staff; a rehabilitation facility; three meals a day; concierge service seven days a week; weekly housekeeping; a salon and spa; game rooms; a movie theater; and daily fitness, social and educational programs.

The Blake communities appeal to a lot of people who live independently but want to be around people their own age, Yarborough said.

The average age at The Blake communities is 80. The investors own interests in The Blake at Gulf Breeze in Gulf Breeze, Fla., and The Blake at Township in Ridgeland, Miss.

[blog.al.com]

Two Brooklyn nursing home properties being auctioned off by Saint Vincent Catholic Medical Centers are on track to be purchased by Kenneth Rozenberg and Daryl Hagler. SVCMC signed asset purchase agreements earlier this month to sell the two facilities, the Bishop Francis J. Mugavero Center for Geriatric Care and St. Jerome’s Health Services Corp., which does business as Holy Family Home.

The bankrupt hospital, however, is looking for higher bidders at an auction next month. If Messrs. Rozenberg and Hagler are ultimately outbid, SVCMC would have to pay a deal breakup fee for Holy Name of 2% of the purchase price, or $337,500. For the Mugavero Center, the breakup fee is $602,300.

Messrs. Rozenberg and Hagler control 10 other local nursing homes and “are well-known nursing home operators,” according to bankruptcy court papers. They describe the businessmen as “generally regarded in the industry as among the best and most qualified buyers of nursing homes.”

Holy Family is a 200-bed skilled nursing and residential health care facility at 1740 84th St. in Bensonhurst. The combined purchase price to be paid by Messrs. Rozenberg and Hagler for the nursing home and real estate is $16,875,000.

Bishop Mugavero, a 288-bed nursing home at 155 Dean St. in Boerum Hill attracted a $30.1 million purchase price.

The bid deadline is Sept. 14, with an auction set for Sept. 21.

Mr. Rozenberg is also the proposed purchaser of a 264-bed nursing home in Yaphank, L.I., owned by Suffolk County, with a top bid of $36 million.

[crainsnewyork.com]

PALESTINE — Trucare Living Centers of Palestine, a new 120-bed skilled nursing facility, officially opened its doors to the public Wednesday with an open house, ribbon-cutting and tour of the facilities at 2265 S. Sycamore St.

“We are very happy about our facility and excited to be a part of Palestine,” Trucare Living Centers Administrator Lance House said during the grand opening event.

Trucare technically opened July 5 and currently has 19 residents.

“As the community learns about our facility, we will begin to fill up,” House said.

Prior to the open house, the public was invited to a deed ceremony at the corner of East Park and Sylvan streets at the site of the former Mya Nursing Home. Trucare Living Centers’ management purchased the former facility’s skilled nursing beds before demolishing the facility. The land that the former facility rests on was donated to the non-profit organization, Historic Palestine Inc.

Trucare Living Centers’ basic services include skilled nursing care, activities, private dining room, beauty shop, full-time therapy services, meal service, flat screen television in every room with cable television; community programs and involvement.

“We offer more of a home-like environment,” House said. “Older nursing facilities suffer from a chronic lack of space with very little common area space for the residents and we have the benefit of having more common areas. We have a secure courtyard where the residents can go anytime without the fear of them wandering off.”

In fact, House said the new nursing home is similar to an assisted living facility.

“I think assisted living has turned the nursing home industry on its ears. New nursing homes are now more home-like and this facility is a reflection of that,” House said.

Currently, Trucare has 25 employees. At full capacity, House said Trucare would employ about 120 employees.

Outside activities for the residents include weekly outings to Wal-Mart, as well as birthday outings to local restaurants, and trips to the Athens Freshwater Fisheries Center and the Grapeland Safari.

“We have a full fledged activity program,” House said, “but we are looking for more church involvement.”

Trucare Living Centers has facilities in Arkansas, Texas and Oklahoma. The company originally started as a rehab therapy company and grew from there.

“Our therapy department is very good. It’s got the best equipment that I’ve seen out there,” House said. “We also have a Wii to help residents stay active.”

House is not a stranger to Palestine, serving as the secretary of the Rotary Club, involved in the Palestine Area Chamber of Commerce and previously employed at Greenbriar Nursing & Rehab Center.

“I’ve lived here for three years and I feel very welcome in Palestine,” House said. “My director of nursing, Wanda Lambright, followed me here as well.”

For information about Trucare Living Centers of Palestine, call 903-723-2592 or e-mail inquiries@tlc-palestine.com

[palestineherald.com]

National Church Residences (NCR) recently announced that was been awarded over $7.9 million through the Assisted Living Conversion Program (ALCP) of the U.S. Department of Housing & Urban Development (HUD) to convert two of NCR’s existing Ohio affordable senior housing facilities to affordable assisted living communities. Hopeton Village in Chillicothe will receive $3.9 million in funding to convert 25 units on the second and third floors of the seven–story, 109-one-bedroom unit building, into assisted living units, and is an expansion of the 2008 ALCP funding that permitted the conversion of two floors, each containing 17 units, to affordable assisted living. NCR’s community Portage Trail Village in Cuyahoga Falls will received $3.9 million to convert 39 units on the fourth, fifth, and sixth floors of the 13-story, 199-unit building, into assisted living units, and is an expansion of 2008 ALCP funding, which allowed for the conversion of 32 units on the first, second, and third floors, to affordable assisted living.

“HUD’s Assisted Living Conversion program has proven successful in select cities across the country. Its objective is the same as NCR’s: to allow residents to remain independent in their own homes, rather than making a premature or unnecessary move to a nursing home or assisted living facility. The Program will allow our residents to maintain the highest possible quality of life, while saving Medicare and Medicaid health care dollars,” said NCR President & CEO Thomas W. Slemmer.

[seniorhousingnews.com]

Located at 3255 Independence St., approximately 115 miles to the south of St. Louis and 170 miles to the north of Memphis, Cape Girardeau Long-Term Acute Care Hospital is within one-and-a-half miles of the 258-bed St. Francis Medical Center, the region’s largest acute care facility and a significant source of referral patients. Construction of a 208,000-square-foot combined Heart Hospital and Cancer Institute is currently underway at the medical center.

“Cape Girardeau Long-Term Acute Care Hospital is the first of a four property portfolio of long-term acute care hospitals we are in the process of acquiring under a long-term sale leaseback agreement,” said Danny Prosky, president and chief operating officer. “The addition of these long-term care centers further diversifies Grubb & Ellis Healthcare REIT II, from both a geographic and asset mix perspective, and provides stable income for at least the next fifteen years.”

Built in 2006, Cape Girardeau Long-Term Acute Care Hospital is leased by Landmark Holdings of Missouri, LLC, which signed a long-term lease through 2025.

Creative Health Capital, LLC represented the seller, White Oaks Real Estate Investments, LLC, an unaffiliated third party, in the transaction. Grubb & Ellis Healthcare REIT II financed the acquisition using cash proceeds received from its offering and $6,500,000 in borrowings under its line of credit with Bank of America, N.A.

About Grubb & Ellis Healthcare REIT II

Grubb & Ellis Healthcare REIT II, Inc. intends to qualify as a real estate investment trust that seeks to preserve, protect and return investors’ capital contributions, pay regular cash distributions, and realize growth in the value of its investments upon the ultimate sale of such investments. Grubb & Ellis Healthcare REIT II is seeking to raise up to approximately $3 billion in equity and to acquire a diversified portfolio of real estate assets, focusing primarily on medical office buildings and other healthcare-related facilities.

Grubb & Ellis Healthcare REIT II is sponsored by Grubb & Ellis Company (NYSE: GBE). Grubb & Ellis is one of the largest and most respected commercial real estate services and investment companies in the world. Grubb & Ellis Company’s 6,000 professionals in more than 100 company-owned and affiliate offices draw from a unique platform of real estate services, practice groups and investment products to deliver comprehensive, integrated solutions to real estate owners, tenants and investors. The firm’s transaction, management, consulting and investment services are supported by highly regarded proprietary market research and extensive local expertise. Through its investment subsidiaries, the company is a leading sponsor of real estate investment programs that provide individuals and institutions the opportunity to invest in a broad range of real estate investment vehicles, including publicly registered non-traded real estate investment trusts (REITs), mutual funds, separate accounts and other real estate investment funds. For more information, visit www.grubb-ellis.com.

This release contains certain forward-looking statements (under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) with respect to the success of Cape Girardeau Long-Term Acute Care Hospital, its stable income, construction of the Heart Hospital and Cancer Institute, and whether its proximity to St. Francis Medical Center is beneficial. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: the strength and financial condition of Cape Girardeau Long-Term Acute Care Hospital and its tenant; uncertainties relating to the financial strength of Cape Girardeau Long-Term Acute Care Hospital, St. Francis Medical Center and the local economy of the city of Cape Girardeau; uncertainties relating to changes in general economic and real estate conditions; uncertainties regarding changes in the healthcare industry; the uncertainties relating to the implementation of our real estate investment strategy; and other risk factors as outlined in the company’s prospectus, as amended from time to time, and as detailed from time to time in our periodic reports, as filed with the U.S. Securities and Exchange Commission. Forward-looking statements in this document speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events. We claim the safe harbor protection for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

THIS IS NEITHER AN OFFER TO SELL NOR AN OFFER TO BUY ANY SECURITIES DESCRIBED HEREIN. OFFERINGS ARE MADE ONLY BY MEANS OF A PROSPECTUS OR OFFERING MEMORANDUM.

SOURCE Grubb & Ellis Healthcare REIT II, Inc.

An Orchard Park senior-living center was one of 132 acquired by a joint venture partnership created to purchase assets of the financially troubled Stayton SW Assisting Living group.

Included in the $1.2 billion transaction was the 100-unit Orchard Glen Retirement Community on Armor Road. Orchard Glen, which was constructed in 1999, sold for slightly more than $17 million, according to documents filed in the Erie County Clerk’s office.

The complex was acquired by BRE/SW Orchard Glen LLC, an affiliate of a joint venture between Blackstone Real Estate Advisors VI L.P., Emeritus Senior Living and Columbia Pacific Advisors.

The Blackstone-Emeritus-Columbia joint venture received the green light to complete the deal last month by U.S. District Court Judge Michael Hogan in Portland, Ore., as part of Stayton SW Assisted Living’s Chapter 11 reorganization. Stayton was formerly known as Sunwest Management.

“This transaction was the result of a large collaborative effort and provides Sunwest investors and creditors their best opportunity to recoup losses,” said Clyde Hamstreet, Stayton chief restructuring officer.

The deal is a seamless one for Orchard Glen, its residents and employees. Orchard Glen, according to court documents, has 92 residents and 42 employees. The residents are remaining, and all of the employees have been retained.

Emeritus Senior Living has 460 communities in 44 states, including Bassett Manor in Amherst and Emeritus at Lakewood. It also operates Rochester’s West Side Manor and the Landing at Brockport.

Read more: Orchard Glen complex sold for $17 million – Business First of Buffalo

[bizjournals.com]