CAMBRIDGE REALTY CAPITAL

Transcription

1 CAMBRIDGE REALTY CAPITAL Senior Housing & Healthcare Capital Demand A Great Deal More Than A Promise TM 1

2 Over $5 Billion in Closed Senior Housing Transactions Combining our vast industry knowledge & capital markets expertise, we at Cambridge provide proven debt and equity financing solutions to senior housing owners and investors to help them develop, stabilize or restructure their business. Over 30 Years of Senior Housing Industry Experience 100% HUD Closing Rate In The Last 3 Years 100% Customer Satisfaction With Closed Transactions 2

3 Cambridge s Capital Solutions HUD LEAN FINANCING Obtain one of the lowest interest-rate loans available for Senior Housing Contact Us Deal Submission (click here) CONVENTIONAL DEBT FINANCING Obtain more than just a loan, gain a bank partner that will help you in future endeavors SIGNATURE BRIDGE LOAN FINANCING Obtain additional leverage, put a cash out loan in place prior to HUD financing, or obtain the debt financing necessary to acquire properties you are leasing and lower your cost of capital PRINCIPAL ACQUISITIONS, JOINT VENTURES & PREFERRED EQUITY Cambridge has its own private equity arm that acquires existing facilities and invests in development opportunities (312) info@cambridgecap.com Subscribe to Cambridge s Capital Wisdom (click here) 1 North LaSalle, 37th floor Chicago, IL

4 Cambridge s Experience, Your Advantage Cambridge has focused exclusively on senior housing for 25 years and has over 30 years of industry experience We have enjoyed a 100% HUD closing rate in the last 3 years, and have been a top 5 HUD senior housing lender for the last 14 out of 16 years We are privately owned to maintain client flexibility. This has enabled us to achieve 100% client satisfaction on over 500 closed transactions. 4

5 Our Focus on You Cambridge Realty Capital 3. Consultation and Assessment 1. Your Capital Needs Our Capital Solutions HUD Financing Conventional Financing Signature Bridge Loan Financing Principal Acquisitions & Joint Ventures 7. Your Goals Achieved With a Closing 6. Cambridge Executes Strategy Cambridge is committed to solving your capital needs so you can focus on your operations. We have developed The Signature Experience TM, and the entire process is geared with one prime goal in mind: Client Satisfaction. Visit our Website to learn more about our Signature Experience TM. 4. Identifying Best Capital Solution 5. Setting You on Right The Path Cambridge has an excellent reputation in the industry. The company is exceptionally knowledgeable, resourceful and systematic and it delivers on promises. I d recommend the company to anyone without hesitation. Tom O Niones, Skilled Nursing Home Operator Founder and President -Transcendent Healthcare Evansville, IN 5

6 Find Your Capital Solutions HUD LEAN FINANCING Obtain one of the lowest interest-rate loans available for Senior Housing with an experienced team SIGNATURE BRIDGE LOAN FINANCING Obtain additional leverage, put a cash out loan in place prior to HUD financing, or obtain the debt financing necessary to acquire properties you are leasing and lower your cost of capital CONVENTIONAL DEBT FINANCING Obtain more than just a loan, gain a bank partner that will help you in future endeavors PRINCIPAL ACQUISITIONS, JOINT VENTURES & PREFERRED EQUITY Cambridge has its own private equity arm that acquires existing facilities and invests in development opportunities We work nationwide and no deal is too big for us. We work with both small and large owners, operators and investors, and all types of ownership structures (public, private, family structures and entrepreneurial). We have tremendous ability to access capital; debt, equity and mezzanine capital Contact us at (312) to learn which of our programs is best for you or apply online. Visit our website to learn more about what our clients have to say about working with us. 6

7 Find Your Capital Solutions HUD LEAN FINANCING Property Type: Loan Purpose: Footprint: Loan Amount: Maximum Loan to Value: Debt Service Coverage: Interest Rate: Term & Amortization: Guaranty: Assumable: Licensed Senior Housing facilities, Long-Term Care, Nursing Homes, Skilled and Intermediate Care, Assisted Living Facilities, Board and Care Facilities, and Personal Care Homes Refinance or acquire existing facilities. Refinance with Rehabilitation. Acquisition with Rehabilitation. Refinance existing FHA loan. Refinance with Expansion Nationwide $2,500,000 and No Maximum Up to 80% (85% for not for-profit) A minimum of 1.18x (Based on Adjusted NOI) Fixed Rate (based on current market) Maximum term of 35 years with equal amortization Non-recourse to the borrower Fully Assumable 7

8 Find Your Capital Solutions CONVENTIONAL DEBT FINANCING Property Type: Loan Purpose: Footprint: Loan Amount: Maximum Loan to Value: Debt Service Coverage: Interest Rate: Term & Amortization: Guaranty: Assumable: Senior Housing facilities, Assisted Living, Independent Living, Long-Term Care, Nursing Homes, Skilled and Intermediate Care, Board and Care Facilities, and Personal Care Homes Refinance or Acquire existing facilities. Refinance with Rehabilitation. Acquisition with Rehabilitation. Refinance existing FHA loan. Refinance with Expansion Nationwide $5,000,000 or greater Up to 80% A minimum of 1.3x (Based on Adjusted NOI) Fixed Rate or Variable (based on current market) 3 years to 10 years, with 20 to 30 year amortization Flexible N/A 8

9 Find Your Capital Solutions SIGNATURE BRIDGE LOAN FINANCING Property Type: Licensed Senior Housing facilities, Assisted Living, Independent Living, Long-Term Care, Nursing Homes, Skilled and Intermediate Care, Board and Care Facilities, and Personal Care Homes Loan Purpose: Footprint: Loan Amount: Maximum Loan to Value: Debt Service Coverage: Interest Rate: Term & Amortization: Guaranty: Assumable: Acquisitions and refinance, consolidate debt, lower interest rate, interim loan or as a place-holder until HUD loan is secured, acquire your properties from your landlord Nationwide $5,000,000 or greater Up to 95% Subject to underwriting Fixed Rate or Variable (based on current market) 24 to 60 months with extension option Flexible N/A 9

10 Find Your Capital Solutions PRINCIPAL ACQUISITIONS Property Type: Multi-Facility Portfolios Preferred Congregate Apartments Multi-Level Facilities Assisted Living Facilities Memory Care Facilities Nursing Homes Skilled and Intermediate Care Purchase Amount: $2,500,000 to $250,000,000 Footprint: Nationwide Structure 100% interest in Real Estate and Operations Sale/Leasebacks Joint Ventures Triple Net Leases on Skilled Nursing Facilities Can incorporate purchase options for operators Manager/Operator requirements Construction/ Development Experienced and proven operators with solid track record On a selective basis (Click here to learn more) Notes: Cambridge s private equity arm has tremendous ability to access capital, both debt and equity. 10

11 Selected Transactions $26.6 Million $22.2 Million $21 Million Ide Management Group Acquisition Conventional The Views Marion New Construction HUD 232 The Abington Acquisition Conventional Bridge to HUD $65 Million $36.8 Million $2.2 Million Premier Healthcare Portfolio Conventional First Mortgage and AR Financing Regency Rehabilitation Refinance HUD Section 232 Thorndale Manor Refinance HUD Section 232 Over $5 Billion in Closed Senior Housing Transactions 11

12 Selected Recent Transactions Ide Management Group Acquisition Financing Transaction Details Type: Our Role: Loan Program: Conventional Bridge Loan Advisor and Mortgage Broker Cambridge Signature Bridge Loan Program Amount: $26,625,000 Size: Location: 10 Facilities/ 707 Beds Indiana & Iowa Challenges Borrower sought to execute purchase option with its landlord, a publicly traded REIT, allowing borrower to acquire real estate of 14 facilities which they were currently operating pursuant to an NNN operating lease (10 of the 14 facilities were part of subject bridge loan). The underwriting of the loan needed to include significant amount of the supplemental payment program revenue, and there were few lenders willing to underwrite transactions involving SNFs receiving the high degree of supplemental payment program revenue. Borrower requested a loan program with high loan to cost. Borrower was on a strict timeline with its landlord; if deadline was missed, borrower would have relinquished its purchase option. Cambridge Solution Cambridge arranged a $26,625,000 acquisition loan with one of its Signature Bridge Lenders through a bank syndication program Signature Bridge Lender s bank syndication program included variety of banks present in Indiana. Cambridge chose a lender who was able to underwrite the supplemental payment program and get comfortable with the highly complex structure with Cambridge's assistance. Cambridge suggested an appraisal group with deep knowledge in the space who was able to appropriately value the supplemental payment program. Client Outcome Borrower was able to purchase the real estate on the 10 facilities at a highly attractive purchase price prior to its deadline. Borrower was able to minimize cash equity. Borrower received competitive interest rate. Borrower saved money by eliminating its expensive operating lease (which also had escalations ) and replaced with lower cost mortgage. Borrower received longer bridge loan term that included extension options. 12

13 Selected Recent Transactions The Abington Transaction Details The Views Marion Transaction Details Type: Bridge to HUD Acquisition Type: HUD Construction Loan Amount $21,000,000 Amount $22,267,500 Size: 1 Facility / 192 Beds Size: 1 Facility / 112 Beds Location Illinois Location Iowa Challenges Borrower wanted to exercise its purchase option to acquire the facility they were leasing, and wanted to put as little equity down to acquire facility. There was little operational history and this made it challenging for banks to underwrite the new operator. Borrower wanted to find a bank that it could also build a long relationship with to fund future projects. Cambridge Solution Cambridge facilitated a $20,000,000 term loan & $1,000,000 ABL to acquire the facility with Signature Lending Partner. Loan to Cost in excess of 100%. Extremely competitive interest rate obtained, at least 100 bps better than any other lender who quoted the deal. Total time frame to close was 52 days. Client Outcome Borrower was able to exercise its purchase option at below-market price. Borrower was able to acquire the facility with little down payment and consequently was able to apply some to the capital expenses it had incurred towards the total equity required to buy the property. Borrower achieved a Loan to Cost in excess of 100%. Challenges Borrower wanted to develop a class A, state-of-the-art CCRC facility. Borrower requested a loan program with high Loan to Cost and a minimal equity requirement. Highly competitive market with high construction costs. Cambridge Solution Cambridge provided a $22,267,500 HUD 232 construction and permanent loan at 90% LTC and 77% LTV at closing. Provided a fully non-recourse, construction permanent loan. Cambridge was able to successfully obtain an early start which allowed the project to break ground prior to closing. Client Outcome Borrower was able to minimize cash equity. Borrower received very low interest rate. Borrower obtained a non-recourse, fixed-rate, permanent construction mortgage loan at 90% LTC. 13

14 Selected HUD Transactions VIP Care Pavilion Regency Park Fair Oaks Transaction Details Transaction Details Type: HUD 232/223(f) Type: HUD 232/223(f) Amount $4,000,000 Amount $28,880,000 Size: 1 Facility / 55 units Size: 1 Facility / 130 units Location Florida Location California Challenges Lack of HUD 232 LEAN Insurance requirements. Physical plant/bathroom requirements State of FL vs. HUD 232 LEAN. Account receivable payment conflict. Cambridge Solution Obtained waiver for professional liability insurance requirement; saving the borrower significant costs. Obtained waiver from ORCF for facilities bathroom since setup conformed to State of FL requirements. Introduced borrower to financial institution that would accommodate HUD 232. Client Outcome HUD loan was closed with a historic low rate. Challenges Cambridge s long-term client developed a Class A, state-of-the-art facility in phases and sought to refinance with HUD upon stabilization. Given the Class A nature of the facility and the subject market, the facility yielded a value which was high on a per-unit basis. The borrower sought to reduce its credit and recourse exposure to its conventional banking relationships as a means to obtain future financing for new projects. Cambridge Solution Cambridge worked diligently with HUD to get them comfortable with a Class A, state-of-the-art facility, which yielded a rich valuation on a perunit basis. Cambridge articulated to HUD that this project and its operating model were sustainable given the facility s market and deep experience of operator. Client Outcome Borrower obtained maximum HUD loan on a project with a high perunit valuation. Borrower was able to reduce its credit and recourse exposure and pursue new projects with its conventional banking relationships. HUD loan closed with historically low fixed interest rate. Cambridge was honored to have the opportunity to provide financing and achieve a great outcome for this very special client. 14

15 Selected Conventional Transactions Premier Healthcare Portfolio Transaction Details Type: Conventional Loan Amount $65,000,000 Size: 10 Facilities / 914 Beds Location Ohio Diakonos Portfolio Transaction Details Type: Conventional Loan Amount $10,300,000 Size: 4 Facilities / 115 units Location Oklahoma Challenges Several of the facilities were facing immediate challenges. One facility was on the special focus facility list and was not on the facilities that improved list. Two leasehold facilities were in transition to new tenant with no operating history to show for new tenant. Borrower was desirous of construction capital to significantly improve two facilities. Strict deadline for closing date; if not met, deal may not have closed. Cambridge Solution Introduced qualified lender to borrower and obtained term sheet for borrower that made sense and met borrower s needs. Structured in excess of $10,000,000 of new capital improvement funds. Guided borrower through loan process the entire time. Client Outcome Fulfilled borrower s loan request. Transaction closed by deadline. Challenges Borrower had a short turnaround time since the acquisition of property. Significant cash-out was requested by the borrower. Conventional loan needed to be structured for future HUD takeout. Cambridge Solution Introduced qualified lender to borrower and obtained terms the borrowers requested. Secured a financing solution that would answer both short-term and long-term financing needs. Significant cash-out allowed client to continue to grow their business. Client Outcome Fulfillment of borrower s wish list. Worked with both the conventional lender and in-house HUD team to ensure deal could take advantage of future HUD program. 15

16 Selected Investment Transactions Cottage Living Portfolio - Sold Transaction Details Boonville & Owensville - Sold Transaction Details Type: Acquisition-Sold Type: Acquisition-Sold Bought $6,300,000 Sold $18,400,000 Bought $4,850,000 Sold $8,900,000 Size: 4 Facilities / 125 units Size: 2 Facilities / 140 beds Location Wisconsin Location Indiana Challenges Facilities had low occupancy. Dated physical condition of properties. One of the facilities was vacant and unlicensed. Poor management of portfolio. Cambridge Solution Cambridge made capital improvements to the facilities and rehabbed vacant building to obtain licensure. Team hired a consulting firm to assist with marketing and operational oversight. A local third-party management company was contracted (with incentive management contract) to turn around operations, with a focus on revenue growth. Outcome Occupancy almost doubled and cash flows increased over $1.3M. Achieved Equity Multiple of 13.09x. Return on Equity per annum of 142%. Challenges One of the nursing homes had ADA deficiencies. Poor physical condition of properties. Absentee ownership. Cambridge Solution Cambridge backed recently hired third party management company to keep improving economics. Cambridge took advantage of the state s rate increase and the lack of new CONs being issued in Indiana. Cambridge made capital improvements to facilities and negotiated a lease with existing management company. Outcome Health deficiencies improved. Cambridge exited the deal by selling to its tenant. Achieved Equity Multiple of 3.66x. Return on Equity per annum of 44%. 16

17 Testimonials If Cambridge is presenting their acquisition deal or loan, it s like being introduced to the funding process by an old friend as opposed to someone off the street. If Cambridge says the deal has merit, this means something to capital sources. The company has enjoyed success because it is driven by a desire to close transactions and not just to earn a fee. Setting realistic expectations, building relationships and treating people fairly is what Cambridge is all about. ~ Jerry Nudo, Partner; Marc Realty ~ Andrew Delman, Owner; National Preservation Housing Partners Cambridge s principal owners and staff are exceptionally knowledgeable, professional and experienced and never did anything to make me doubt I would get a positive outcome. If anything, the company under-promised and over-delivered. Cambridge thoroughly studied our situation and could see and trust our story. The company is one of the nation s leading HUD 232 lenders and was able to arrange a bridge loan with GE Capital with the idea that this loan would be converted to permanent HUD Lean financing at a later date. ~ Arnie Goldberg, SNF owner ~ Scott Pilgrim, CEO; Diakonos Group LLC It was a complex deal with a lot of moving parts, but Cambridge made it look easy. It was surprising how quickly the deal came together. ~ Chris Hyldahl, Senior Managing Director, Founding Partner; Blueprint Real Estate Healthcare Advisors Cambridge has an excellent reputation in the industry. The company is exceptionally knowledgeable, resourceful and systematic and it delivers on promises. I d recommend the company to anyone without hesitation. ~ Tom O Niones, Founder and President Transcendent Healthcare 17

18 Cambridge Social Media Cambridge s PulsePoints Blog Cambridge Realty Capital (312) North LaSalle, 37th floor, Chicago, IL