Transactions and Financing: Moody’s Improves Welltower’s Ranking Outlook; Friendship Village of Tempe $ 104 million bond concern

Welltower’s (NYSE: WELL) credit standing improved barely, additional signal that the efficiency of its working senior housing (SHO) portfolio is rebounding.

The Toledo, Ohio-based Actual Property Funding Belief (REIT) ranking outlook has been revised from unfavorable to steady, and its issuer credit standing has been revised to “Baa1” standing by Moody’s Buyers Service.

The monetary companies firm harassed that the steady outlook displays a gradual enchancment in SHO and a continued restoration in money circulate.

Welltower reported a spot occupancy charge in its senior housing phase of 76.1% as of September 3, 2021. The overall occupancy charge of the SHO portfolio elevated practically 380 foundation factors from the purpose pandemic low of March 12, 2021, pushed by a 520 foundation level enchancment in Welltower’s US portfolio and a 480 foundation level soar in its UK phase.

Gross sales and operator transitions

Nationwide Well being Buyers (NYSE: NHI) has accomplished the sale of an unbiased residing neighborhood in Fort Wayne, Indiana, managed by Vacation Retirement to a subsidiary of Welltower (NYSE: WELL), in line with a SEC submitting.

Capital Sq. 1031 has expanded its portfolio of age-restricted prefabricated housing communities with the acquisition of The Coach Home, a prefabricated housing neighborhood in Palmetto, Florida, consisting of 420 housing websites. Services embrace a clubhouse, heated swimming pool, shuffleboard courts, laundry room, health middle, three neighborhood lakes, and storage heaps out there to residents.

Capital Sq. intends to make strategic enhancements to the neighborhood, together with a whole pavilion renovation, landscaping enhancements and additions, neighborhood extensive enhancements, highway enhancements, driveways and curbs in addition to utility system upgrades.

Avanath Capital Administration has acquired River Run Senior, a 360-unit inexpensive seniors housing neighborhood in Corona, California.

Advisable SHN + exclusives

Avanath now owns 11 senior residences totaling 2,187 models in Southern California. River Run is the corporate’s second acquisition in Riverside County and its third acquisition within the area prior to now 9 months. He’ll handle the property and embark on a capital enchancment program that may improve the mechanical techniques; change roofs, HVAC techniques and boilers; add a upkeep workshop; and set up safety cameras close to entry doorways.

Funding

LTC Properties closes $ 46 million investments

Westlake Village, Calif.-Primarily based LTC Properties (NYSE: LTC) has to date generated $ 46 million in new investments within the third quarter of 2021, the Actual Property Funding Belief (REIT) introduced on October 11.

The 4 investments are anticipated to generate annual curiosity earnings of roughly $ 3.5 million. The operations embrace:

  • A unitranche mortgage of $ 27 million for the acquisition of a talented nursing middle in Louisiana by a regional operator new to LTC
  • A $ 12.5 million senior mortgage for the acquisition of an assisted residing / reminiscence care neighborhood in Florida by a regional operator new to LTC
  • A $ 4.4 million mezzanine mortgage to refinance an Oregon unbiased residing neighborhood with a brand new regional operator in LTC
  • A $ 1.8 million land mortgage secured by a plot of land for the event of a nursing middle specializing in post-acute care to be operated by an present LTC accomplice

Ziegler concludes 2 transactions totaling $ 275 million

Ziegler carried out the next monetary preparations:

– A $ 104.1 million Collection 2021A, Collection 2021B and Collection 2021C bond concern on behalf of Friendship Village of Tempe, a unbroken care retirement neighborhood in Tempe, Arizona. The bonds had been issued by means of the Industrial Growth Authority of the Metropolis of Tempe, are exempt from federal and state earnings tax and are unrated. The proceeds shall be used to refinance beforehand issued Collection 2012 bonds, fund a second part of a campus repositioning, fund debt service reserve funds on bonds and capitalized curiosity for about 23 months, and fund issuance prices. The repositioning of the campus features a new five-story constructing with 64 paid residences and a brand new eating corridor, changing an present constructing with 60 models.

– A $ 170.6 million bond concern within the identify of Canterbury Court docket, a retirement neighborhood in Atlanta’s Buckhead neighborhood. The difficulty consists of a $ 124.81 million Collection 2021A / B Fastened Fee Bond bundle and $ 45.8 million Collection 2021C Direct Financial institution Bond bundle. The proceeds shall be used, together with different out there funds, to fund the prices of a campus enrichment venture of reallocating older well being amenities and expert nursing models into a mixture of unbiased residing, residing. assisted, reminiscence care and personal care residences; fund segregated debt service reserve fund accounts for Collection 2021A / B bonds; fund a portion of the curiosity on Collection 2021 bonds; and pay sure bills incurred in reference to the sale and issuance of the bonds.

HJ Sims closes $ 78 million bond concern for Landis Communities

HJ Sims entered right into a bond issuance and financing program on behalf of Landis Communities, consisting of a $ 25 million financing for Landis Place on King in Lancaster, Pa .; and a $ 53.4 million Collection 2021 bond concern for Landis Properties, a retirement neighborhood aged 55 and over in Lititz, Pa. Each financings are secured by a gross earnings collateral, first mortgage positions on campuses and are secured by a debt service reserve fund.

The bonds had been oversubscribed, permitting rates of interest to drop.

MidCap Monetary has entered right into a $ 14.25 million acquisition mortgage for a three way partnership between Winterpast Capital Companions, Broadview Actual Property and Vitality Residing. The proceeds facilitated the acquisition and repositioning of Vitality in Frederica, a neighborhood of 92 retirement properties on St. Simon’s Island, Georgia.

Outlook Notes

Fitch Revises Morningstar Outlook to Damaging and Confirms Covenant Well being ‘BBB’ Ranking

Fitch Scores introduced the next updates:

– Fitch confirmed the “BBB” issuer default ranking on Covenant Well being. The Lexington, Massachusetts-based nonprofit well being care system gives a variety of well being companies, together with assisted residing, expert nursing, and rehabilitation companies. The declare displays a monetary profile in step with the “BBB” ranking class common and supported by a robust steadiness sheet that offsets a thinner however bettering working efficiency. The affirmation acknowledges the progress Covenant Well being has made in its turnaround plan.

– Fitch assigned an issuer default ranking of “BB +” and confirmed a “BB +” ranking on $ 61.8 million of Collection 2012 and Collection 2019 bonds issued by the Northampton County Industrial Growth Authority on behalf of Morningstar Senior Residing. The ranking outlook has been revised from steady to unfavorable, reflecting Fitch’s expectation that the supplier will keep a steady however slim monetary profile. The bonds are secured by a pledge of the obligated group’s gross earnings (OG), a primary mortgage lien and a debt service reserve fund. The primary scoring drivers embrace low profitability and strong capital spending.

– Fitch assigned an issuer default ranking of “A +” to Kendal to Oberlin, a neighborhood life planning subsidiary of Kendal Company positioned in Oberlin, Ohio. The ranking outlook is steady, reflecting the anticipated resilience of the neighborhood’s monetary profile, sturdy income protection, sturdy nationwide curiosity and restricted competitors, sturdy working metrics and steady capital spending, and danger common working.

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