Healthcare Real Estate

Cain Brothers, a division of KeyBanc Capital Markets, advised FilBen Group on the $30,685,000 FHA 232/223(f) refinancing for Wallkill Realty Partners d/b/a Braemar at Wallkill. The proceeds of the Loan will be used to refinance The Orange County Funding Corporation (New York) Assisted Living Residence Revenue Bonds, Series 2012.

The transaction will provide Braemar at Wallkill with a long-term, fixed-rate, low cost of capital. As a result of the refinancing, the tax-exempt public fixed-rate Series 2012 Bonds were redeemed at par. In addition, the refinancing will remove any ongoing financial covenants and public disclosure requirements related to the Series 2012 Bonds (e.g., Debt Service Coverage Ratio, Days Cash on Hand).

Braemar at Wallkill is licensed as an Adult Home, of which 120 beds are licensed as Assisted Living Residence and primarily serve private-pay residents, and the remaining 80 beds are licensed as Assisted Living Program and primarily serve Medicaid-eligible residents. Twenty-four of the ALR beds are licensed as Special Needs Assisted Living Residence and are operated as memory support beds.

The Facility was developed and is owned and operated by various affiliates of FilBen, an experienced and well-respected New York-based senior living developer with a track record spanning over 50 years. FilBen has developed more than 5,000 nursing home beds and 1,400 units of private pay senior housing in New York since its founding.

At the end of the first quarter, Key closed on two HUD loans with long-term client, DLTC. The loans, a $3,931,900 non-recourse, first mortgage loan secured by an Intermediate Care facility known as “Bella Point Bridgton," located in Bridgton, ME; and a $4,672,100 non-recourse, first mortgage loan secured by an Intermediate Care facility known as “Bella Point Fryeburg," located in Fryeburg, ME, represent the culmination of three years of work by Key’s Business Banking and Commercial Mortgage Teams to bridge a portfolio of turnaround assets. Navigating through the COVID crisis and recent economic turbulence, the client secured a low fixed rate on both loans. Adding to 12 deals already closed with Key, the two deals represent a strong business model for Key’s bridge to HUD program in seniors housing.

At the end of the first quarter, Key closed on two HUD loans with long-term client, DLTC. The loans, a $3,931,900 non-recourse, first mortgage loan secured by an Intermediate Care facility known as “Bella Point Bridgton," located in Bridgton, ME; and a $4,672,100 non-recourse, first mortgage loan secured by an Intermediate Care facility known as “Bella Point Fryeburg," located in Fryeburg, ME, represent the culmination of three years of work by Key’s Business Banking and Commercial Mortgage Teams to bridge a portfolio of turnaround assets. Navigating through the COVID crisis and recent economic turbulence, the client secured a low fixed rate on both loans. Adding to 12 deals already closed with Key, the two deals represent a strong business model for Key’s bridge to HUD program in seniors housing.

Marylhurst Commons is a new construction 100-unit affordable housing development, that will be located on the former Marylhurst University Campus in Lake Oswego, OR. When the university closed in 2018, the campus was evaluated and rezoned to allow for a multifamily residence of much-needed housing for low-income families. Of the 100 units, 60 will be set aside at 60% AMI, and 40 will be set-aside at 30% AMI with a preference for tenants at-risk or on the verge of homelessness.

The scarcity of low income housing tax credit (LIHTC) properties in this area has created a strong demand and subsequent waiting lists for housing units that provide a safe, affordable place to call home for under-resourced individuals and families. Lake Oswego has a strong housing market, excellent schools and amenities, and very little long-term affordable housing. Marylhurst Commons addresses that need. The 40-30% AMI units that will target those at-risk or on the verge of homelessness, will be assisted by the Project-Based Regional Long Term Rental Assistance vouchers. This commitment is part of the Metro Regional Supportive Housing Services measure.

The site is located two miles outside of downtown Lake Oswego, offering residents direct access to public transit and close proximity to grocery store, elementary school, and multiple parks and recreation areas. On site features include a community room, courtyard, playground, as well as resident services.

KeyBank financing includes $27.3 million in construction loans, a $12.8 million forward funding permanent loan through the Freddie TEL Program, in addition to purchasing $18.6 million of Low Income Housing Tax Credits. Mercy Housing, Inc. and Mercy affiliate Mercy Housing Northwest (MHNW) are the project sponsors. MHNW owns and operates 54 affordable housing properties throughout 22 counties in Washington and Idaho.