First Citizens Bank Provides Loan to Refinance Tacoma Senior Living Facility

Rhea-AI Summary

First Citizens Bank announced a term loan to refinance GenCare Lifestyle Tacoma at Point Ruston, a 159-unit senior living facility in Tacoma, Washington. The borrower is a joint venture led by Harrison Street, which manages about $55 billion in assets and ranks among the top five largest owners in the senior housing sector in the U.S. The facility was originally developed by the same joint venture with PMB The refinancing was facilitated by First Citizens Healthcare Finance, known for its client-focused and industry-centric approach. The facility is managed by GenCare Lifestyle, another joint venture partner.

Positive

• First Citizens Bank provided a term loan to refinance a 159-unit senior living facility.
• The facility is in a desirable location managed by GenCare Lifestyle.
• Harrison Street, with $55 billion in assets, leads the joint venture.
• First Citizens Healthcare Finance has a client-focused and industry-centric model.

Negative

• No specific financial figures or terms of the loan were disclosed in the PR.

Insights

Financial Analyst

Refinancing a senior living facility can be a significant event in the financial landscape. It indicates a continued commitment by the stakeholders in maintaining the high standards of the facility and ensuring its financial stability. For investors, this move is reassuring, as it signals that the facility remains a viable investment and is supported by robust financial backing. However, it's essential to consider broader market trends. The senior living facility market has been growing due to the aging population, which could increase demand. Yet, potential investors should also be aware of risks such as changes in healthcare regulations, competition and economic downturns that might affect occupancy rates and profitability.

Market Research Analyst

The Pacific Northwest is noted for its high quality of life and demand for senior living facilities. This refinancing deal reflects a positive sentiment about the market conditions in this region. Harrison Street's involvement, given their reputation and extensive assets under management, further solidifies the credibility of this investment. For retail investors, understanding the demographic trends in the Pacific Northwest can provide insights into the long-term viability of this investment. The aging population in this region, combined with a preference for high-quality senior living options, suggests a steady demand. However, investors should also consider the competitive landscape and how this facility differentiates itself in terms of services and amenities.

NEW YORK, June 13, 2024 /PRNewswire/ -- First Citizens Bank today announced that its Healthcare Finance business provided a term loan to refinance GenCare Lifestyle Tacoma at Point Ruston, a 159-unit senior living facility in Tacoma, Washington.

The borrower is a joint venture led by Harrison Street, one of the leading investment management firms exclusively focused on alternative real assets with approximately $55 billion in assets under management and consistently ranking among the top five largest owners in the senior housing sector across the United States. The same joint venture with PMB LLC served as the facility's original developer, with GenCare Lifestyle, another joint venture partner, as the facility operator.

"The Point Ruston property managed by Gencare is a Class-A senior living facility in a very desirable location," said Lindsey Rongstad, Director at Harrison Street. "We greatly appreciated the expertise and flexibility shown by First Citizens Healthcare team in arranging this refinancing. It was another uneventful, smooth closing by this team."

"Demand for high-quality senior living facilities remains strong in the Pacific Northwest and nationwide," said William Douglass, head of First Citizens Healthcare Finance. "We were pleased to work closely with our clients on this transaction."

"This is a beautiful facility in a fantastic location and Gencare has a first-class team operating this building," said Michael Coiley, a managing director on the Healthcare Finance team. "It's great to work with the Harrison Street & PMB teams and deliver on our promises and ensure smooth completion of this refinancing."

First Citizens Healthcare Finance provides comprehensive financing and banking solutions to middle market healthcare companies across the U.S. Using a client-focused and industry-centric model, Healthcare Finance can tailor its products and services to help clients meet their needs for growth capital.

About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in Raleigh, N.C., First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 500 branches and offices in 30 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; innovation banking serving businesses at every stage; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets. Discover more at firstcitizens.com.

About Harrison Street
Harrison Street is one of the leading investment management firms exclusively focused on alternative real assets. Since inception in 2005, the firm has created a series of differentiated investment solutions focused on demographic-driven, needs-based assets. The firm has invested across senior housing, student housing, build-to-rent, healthcare delivery, life sciences and storage real estate as well as social, utility and digital infrastructure. Headquartered in Chicago and London, with offices throughout North America, Europe and Asia, the firm has more than 280-employees and approximately US $55 billion in assets under management on behalf of institutional investors across the globe. Harrison Street was awarded Best Places to Work by Pensions & Investments for nine years (2014-2020, 2022, 2023) and since 2019 has won 15 awards from PERE, including three for the 2023 Awards: Alternatives Investor of the Year – Global, Data Centers Investor of the Year – North America, and ESG Firm of the Year - North America. For more information, please visit www.harrisonst.com. (Assets under management ("AUM") reflects AUM for the Firm's investment advisory and asset management clients, and is inclusive of the Firm's regulatory AUM reported in its Form ADV.)

MEDIA RELATIONS:
John M. Moran
212-461-5507
john.moran2@firstcitizens.com

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SOURCE First Citizens Bank

FAQ

What did First Citizens Bank announce on June 13, 2024?

First Citizens Bank announced a term loan to refinance GenCare Lifestyle Tacoma at Point Ruston, a 159-unit senior living facility in Tacoma, Washington.

Who is the borrower in the First Citizens Bank refinancing deal?

The borrower is a joint venture led by Harrison Street, with PMB and GenCare Lifestyle as partners.

What is the location of the senior living facility refinanced by First Citizens Bank?

The 159-unit senior living facility is located in Tacoma, Washington.

Who manages the senior living facility that was refinanced by First Citizens Bank?

The facility is managed by GenCare Lifestyle.

How much in assets does Harrison Street manage?

Harrison Street manages approximately $55 billion in assets.