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Transactions & Financings: RealPage and G5 Merge; Spain’s First Senior Living Development Sells for $41M

Two of the more notable real estate tech platforms in the senior living space are merging.

Richardson, Texas-based RealPage, which offers property and real estate management software and services for a range of real estate sectors including senior housing, announced it is acquiring G5, a provider of digital marketing, advertising and analytics solutions to the real estate sector.

Founded in 2005, Bend, Oregon-based G5 serves over 8,300 sites, with strong footprints in multifamily, senior living and self-storage. The software as a service (SaaS) platform leverages machine learning to automate marketing decisions and customization at scale. Customers can use G5 to increase property performance, reduce tenant acquisition costs and minimize friction in the renter experience, driving higher net operating income.

RealPage’s platform gives the ability to submit service requests to landlords and pay rent online, and provide a foundation for building owners to conduct financial management and manage expenses. It also maintains a database of real estate transactions, and uses the data to conduct market research and forecasts.

From a senior housing perspective, RealPage can be used to document and report incidents, allowing providers to identify trends and reduce the risk of future incidents. It can also be used to automate care management, automatically calculate care fees and manage community census counts by automating move-ins and move-outs.

Terms of the deal were not disclosed, and the transaction is expected to close during the third quarter of 2021, subject to closing conditions.

This is the latest move by RealPage since Chicago-based private equity firm Thoma Bravo announced plans in December 2020 to buy the company and take it private, in an all-cash transaction deal that values RealPage at $10.2 billion. Thoma Bravo completed the acquisition in April.

Sales and operator transitions

Atlas Senior Living adds Florida community

Atlas Senior Living assumed ownership and operations of an assisted living and memory care facility in St. Petersburg, Florida to its portfolio. The community, formerly known as Bloom at St. Petersburg, has been rebranded as The Goldton at St. Petersburg, and will feature Atlas’ signature programming such as Freedom Dining, SPIRIT Memory Care, and The Academy.

The acquisition brings Atlas’ total portfolio to 30 communities in Alabama, Florida, Georgia, Kentucky, South Carolina, and Tennessee, offering independent living, assisted living, and memory care services. Additionally, development of a community in Texas is ongoing.

Cushman & Wakefield completes $41M sale of Spanish retirement community

Cushman & Wakefield (NYSE: CWK) and Spanish commercial real estate services firm, Savills Aguirre Newman, completed the €35 million sale ($41.3 million US) of Forum Mare Nostrum, a retirement village in Alicante, Spain, to Care Property Invest, a real estate investor in Schoten, Belgium. This is believed to be one of Spain’s first major investments in senior living.

The community has been open for over 20 years and features 229 apartments with garages and storage rooms, gardens, swimming pools, and a central clubhouse with a spa, gym, indoor heated pool, two restaurants, bar, theater, library, art studio, event venue, as well as an area dedicated to health, beauty and wellness.

Financings

Ziegler completes 2 financing packages, totaling $142M

Ziegler completed the following financing packages:

  • An $85.535 million Series 2021 bond package on behalf of Ascentria Care Alliance, a 501(c)(3) nonprofit operating over 30 faith-based human service programs throughout New England. Ascentria is creating a new obligated group consisting of Fair Havens, Inc., doing business as Quaboag Rehabilitation and Skilled Care Center in West Brookfield, Massachusetts including 147 skilled nursing beds; Lutheran Home of Southbury (LHS), in Southbury, Connecticut including 120 skilled nursing beds and 14 assisted living units; and Lutheran Rehabilitation and Skilled Nursing Center (LHC), located in Worcester, 107 skilled nursing beds and 43 rest home care beds. The bonds were issued through the National Finance Authority and the Massachusetts Development Finance Agency. Proceeds from the National Finance Authority bonds will be used to acquire the real estate assets of LHS; fund various capital expenditures across the LHS campus; fund a debt service reserve fund; and pay costs of issuance associated with the financing. Proceeds from the Massachusetts Development Finance Agency debt will be used to refinance existing debt obligations in connection with the acquisition and improvement of Quaboag; fund capital expenditures across LHC and Quaboag; fund a swap termination associated with Quaboag; fund a debt service reserve fund; and pay various costs of issuance associated with the financing.
  • Ziegler closed on a $56.85 million Series 2021 bond issuance on behalf of Westminster, a CCRC in Austin, Texas consisting of 324 independent living units, 22 assisted living units and 85 skilled nursing beds – of which 30 are utilized for memory care. The community is managed by Life Care Services, which is also providing development services for an expansion project. Proceeds will be used, together with other available funds, to redeem Series 2020A notes, fund a portion of the costs of the expansion; fund a portion of the interest on the 2021 Bonds; and pay certain fees and expenses incurred in connection with the sale and issuance of the 2021 Bonds. The expansion includes new construction and renovation to existing buildings. Construction commenced in early July 2020 and is 34% complete as of May 31, 2021.

HJ Sims completes 2 financing packages

HJ Sims and affiliates completed the following financing packages:

  • HJ Sims provided a high leverage bridge loan for the successful acquisition of a Utah senior living community featuring 55 units of assisted living and memory care, with mountain views from its hilltop location in a growing local market. A regional owner, operator and developer of senior housing communities partnered with Sims to close on the acquisition. The buyer specializes in assisted living and currently manages over 1,600 units in more than 25 communities across five states in the western U.S. Live Oak Bank provided the loan, as well as funds for capital improvements.
  • Sims Mortgage Funding arranged a $7 million HUD loan for Marien-Heim of Sunset Park, a 169-unit, Section 8 senior apartment building in Brooklyn, New York, sponsored by a nonprofit community development organization.

CBRE arranges construction financing for Bridgewood North Carolina development

CBRE National Senior Housing Vice Chairman Aron Will, First Vice President Austin Sacco, and Vice President Tim Root arranged construction financing for The Village on Morehead, a 199-unit luxury senior housing development from Bridgewood Property Company and Harrison Street Real Estate. Terms of the financing were not disclosed.

The four-year, floating rate loan originated from a national bank, and carries full-term interest with extension options. When completed, the Village at Morehead will be managed by Bridgewood’s wholly-owned subsidiary, Retirement Center Management.

MassDevelopment provides $8M bond package for Massachusetts CCRc

MassDevelopment issued an $8 million tax-exempt bond on behalf of Glenmeadow, a CCRC in Waltham, Massachusetts. Proceeds will fund improvements to the 24-year-old facility’s residential apartments and common areas, including upgrading flooring, lighting, paint, electrical, plumbing, and HVAC; replacing equipment, windows, and doors; reconfiguring interior walls to enlarge group meeting places; and redesigning unit layouts.

The upgrades will also involve repairing and upgrading the natatorium; repairing and replacing the roof; resurfacing roadways and parking areas; redesigning and reconstructing sidewalks; and completing other general facility improvements.

PeoplesBank purchased the bond, which will also be used to refinance previously issued debt.

Ratings Outlooks

Fitch announces bond rating updates on 3 CCRCs

Fitch Ratings announced the following bond ratings updates:

  • Fitch assigned a “BB” issuer default rating to Presbyterian Retirement Communities Northwest Obligated Group, doing business as Transforming Age. Additionally, Fitch affirmed the “BB” ratings on Series 2013, 2015, 2016A, 2016B, 2019A, 2019B, and 2019C revenue bonds issued by the Washington State Housing Finance Commission on behalf of Transforming Age. The rating outlook is stable. The rating reflects historical census levels, adequate operations and liquidity position, and its high leverage position and execution risks associated with its ongoing independent living unit expansion project. Key rating drivers include adequate operations expected to improve with the completion of the expansion, strong entrance fee receipts and cash reserves.
  • Fitch assigned a “BBB” issuer default rating to Kendal on Hudson, a Kendal Corporation affiliate in Sleepy Hollow, New York. Fitch also affirmed the “BBB” rating on approximately $51.6 million in Series 2013 revenue and refunding bonds issued by the Westchester County Local Development Corporation on behalf of Kendal on Hudson. This reflects significant improvement in KOH’s occupancy and operating performance, which has resulted in a track record of very strong cash flows that have accreted to the community’s balance sheet resulting in leverage metrics that are becoming increasingly consistent with a rating at the upper end of the “BBB” category. Key rating drivers include improved occupancy and strong market position, a strong balance sheet and revenue defensibility.
  • Fitch assigned a “BB+” rating to the following bonds expected to be issued by the Hospital Facilities Authority of Multnomah County, Oregon on behalf of Terwilliger Plaza, a CCRC in Portland, Oregon: $93.3 million, Series 2021A; $15.5 million, Series 2021B-1; $42.2 million, Series 2021B-2; $9.1 million, series 2021C. Additionally, Fitch assigned a “BB+” issuer default rating and downgraded the following outstanding revenue bonds issued by the Hospital Facilities Authority of Multnomah County, Oregon on behalf of Terwilliger two notches to “BB+” from “BBB”: $13 million revenue refunding bonds, Series 2016; and $12.4 million revenue refunding bonds, Series 2012. The Rating Outlook has been revised to stable from negative, reflecting Terwilliger’s limited capacity to absorb the additional debt associated with its upcoming independent living expansion project, following several years of operating deterioration and a weakening balance sheet, which was driven primarily by strategic capital spending (i.e., purchasing land for the expansion project) and investment losses. Key rating drivers include weak core operations, new debt materially increasing the campus’ leverage position; and strong demand indicators despite the pandemic.

Technology

Hireology, myCNAjobs announce partnership

Hiring and talent management platform Hireology announced a partnership with myCNAjobs, the nation’s largest online network of direct care workers. Hireology powers the recruiting, hiring, and onboarding process for thousands of healthcare locations nationwide, and myCNAjobs represents 70% of America’s direct care workers — including caregivers, certified nursing assistants, and home health aides.

Miscellaneous

In a split vote, the Nassau County Industrial Development Agency agreed to provide financial relief for The Amsterdam at Harborside, a CCRC in Port Washington, New York. The community filed for pre-negotiated Chapter 11 bankruptcy protection in June 2021 – the second time in seven years the campus filed for bankruptcy.

– Senior living communities in the Michigan towns of Grand Rapids, Lakeside, Birmingham, Oakland, Hazel Park, Brownstown, and Spring Lake are now under the management of Baldwin House Senior Living.

– A Hand UP Ministry, a faith-based nonprofit organization with a mission of helping formerly incarcerated people reacclimate to the outside world, acquired a former senior housing facility in Trenton, Georgia and will repurpose it as a facility to house its women’s program.
– Knute Nelson, a Minnesota nonprofit senior living provider, acquired Prairie Senior Cottages, an 18-unit memory care community in Alexandria.

The post Transactions & Financings: RealPage and G5 Merge; Spain’s First Senior Living Development Sells for $41M appeared first on Senior Housing News.

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