Notes Payable | 12 Months Ended |
Dec. 31, 2013 |
Debt Disclosure [Abstract] | ' |
Notes Payable | ' |
8 | Notes Payable | | | | | | | | | | | | | | | | | | | | | |
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Notes payable consists of the following (in thousands): |
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Lender | | Average | | | Net Book Value | | | Interest | | | Maturity | | Notes Payable | |
Monthly | Of Collateral(1) | Rate | Date | December 31, |
| Payment | | | | | | | | 2013 | | | 2012 | |
Freddie Mac | | $ | 728 | | | $ | 162,829 | | | | 6.29 | % | | Jul-15 | | $ | 93,765 | | | $ | 96,433 | |
Freddie Mac | | | 101 | | | | 87,345 | | | | 4.39 | | | Jul-15 | | | 19,742 | | | | 20,068 | |
Freddie Mac | | | 60 | | | | 6,800 | | | | 5.75 | | | Apr-17 | | | 8,629 | | | | 8,837 | |
Fannie Mae | | | 178 | | | | 42,167 | | | | 5.91 | | | Jun-17 | | | 27,324 | | | | 27,809 | |
Fannie Mae | | | 28 | | | | 31,890 | | | | 4.47 | | | Jun-17 | | | 5,467 | | | | 5,557 | |
Fannie Mae | | | 78 | | | | 16,271 | | | | 5.69 | | | Aug-21 | | | 13,103 | | | | 13,281 | |
Fannie Mae | | | 26 | | | | 5,812 | | | | 4.97 | | | Oct-21 | | | 4,657 | | | | 4,729 | |
Fannie Mae | | | 101 | | | | 22,374 | | | | 4.92 | | | Oct-21 | | | 18,398 | | | | 18,685 | |
Fannie Mae | | | 117 | | | | 25,304 | | | | 4.92 | | | Nov-21 | | | 21,391 | | | | 21,723 | |
Fannie Mae | | | 27 | | | | 5,874 | | | | 4.38 | | | Mar-22 | | | 5,224 | | | | 5,312 | |
Fannie Mae | | | 60 | | | | 12,963 | | | | 4.76 | | | Apr-22 | | | 11,190 | | | | 11,364 | |
Fannie Mae | | | 135 | | | | 29,520 | | | | 4.69 | | | Apr-22 | | | 25,448 | | | | 25,851 | |
Fannie Mae | | | 60 | | | | 16,801 | | | | 4.48 | | | May-22 | | | 11,546 | | | | 11,735 | |
Fannie Mae | | | 144 | | | | 35,467 | | | | 4.34 | | | Nov-22 | | | 28,455 | | | | 28,920 | |
Fannie Mae | | | 33 | | | | 7,639 | | | | 4.5 | | | Nov-22 | | | 6,325 | | | | 6,417 | |
Fannie Mae | | | 84 | | | | 19,675 | | | | 4.32 | | | Jan-23 | | | 16,744 | | | | 16,995 | |
Fannie Mae | | | 39 | | | | 8,788 | | | | 4.58 | | | Jan-23 | | | 7,471 | | | | 7,577 | |
Fannie Mae | | | 85 | | | | 19,720 | | | | 4.66 | | | Apr-23 | | | 16,221 | | | | — | |
Fannie Mae | | | 45 | | | | 8,818 | | | | 5.93 | | | Oct-23 | | | 7,595 | | | | — | |
Fannie Mae | | | 67 | | | | 14,210 | | | | 5.5 | | | Nov-23 | | | 11,837 | | | | — | |
Fannie Mae | | | 67 | | | | 14,025 | | | | 5.38 | | | Nov-23 | | | 11,900 | | | | — | |
Fannie Mae | | | 282 | | | | 57,984 | | | | 5.56 | | | Jan-24 | | | 49,292 | | | | — | |
Fannie Mae | | | 81 | | | | 17,446 | | | | 5.3 | | | Jun-25 | | | 14,434 | | | | — | |
Berkadia | | | — | | | | — | | | | -3 | | | November 2013 | | | — | | | | 11,550 | |
Berkadia | | | 108 | | | | 19,402 | | | | 5.46 | | | Aug-15 | | | 14,294 | | | | 14,784 | |
Berkadia | | | 15 | | | | 5,639 | | | | -4 | | | Jul-15 | | | 4,550 | | | | — | |
Berkadia | | | 28 | | | | 10,647 | | | | -4 | | | Oct-15 | | | 8,472 | | | | — | |
Berkadia | | | 37 | | | | 9,406 | | | | -5 | | | Jan-16 | | | 9,500 | | | | — | |
HUD | | | 16 | | | | 5,798 | | | | 4.48 | | | September 2045 | | | 3,188 | | | | 3,233 | |
TCF | | | 1 | | | | 8 | | | | 7.55 | | | Jan-14 | | | 1 | | | | 7 | |
Insurance Financing | | | 496 | | | | — | | | | 1.97 | | | May-14 | | | 2,466 | | | | — | |
Insurance Financing | | | 67 | | | | — | | | | 1.89 | | | Oct-14 | | | 665 | | | | — | |
Insurance Financing | | | — | | | | — | | | | — | | | Mar-13 | | | — | | | | 644 | |
Insurance Financing | | | — | | | | — | | | | — | | | May-13 | | | — | | | | 585 | |
Insurance Financing | | | — | | | | — | | | | — | | | Sep-13 | | | — | | | | 500 | |
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| | $ | 3,394 | | | | | | | | 5.23 | %(2) | | | | | 479,294 | | | | 362,596 | |
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Less current portion | | | | | | | | | | | | | | | | | 11,918 | | | | 20,230 | |
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| | | | | | | | | | | | | | | | $ | 467,376 | | | $ | 342,366 | |
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-1 | 58 of the facilities owned by the Company are encumbered by mortgage debt and are provided as collateral under their respective loan agreements. | | | | | | | | | | | | | | | | | | | | | |
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-2 | Weighted average interest rate on current fixed interest rate debt outstanding. | | | | | | | | | | | | | | | | | | | | | |
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-3 | On March 7, 2013, the Company obtained long-term fixed rate financing from Fannie Mae to replace this loan with a fixed interest rate of 4.66% and a 10-year term. | | | | | | | | | | | | | | | | | | | | | |
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-4 | Variable interest rate of LIBOR plus 3.75% which was 3.92% at December 31, 2013. | | | | | | | | | | | | | | | | | | | | | |
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-5 | Variable interest rate of LIBOR plus 4.50% which was 4.67% at December 31, 2013. | | | | | | | | | | | | | | | | | | | | | |
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The aggregate scheduled maturities of notes payable at December 31, 2013 are as follows (in thousands): |
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2014 | | $ | 11,918 | | | | | | | | | | | | | | | | | | | |
2015 | | | 142,534 | | | | | | | | | | | | | | | | | | | |
2016 | | | 15,150 | | | | | | | | | | | | | | | | | | | |
2017 | | | 43,793 | | | | | | | | | | | | | | | | | | | |
2018 | | | 5,262 | | | | | | | | | | | | | | | | | | | |
Thereafter | | | 260,637 | | | | | | | | | | | | | | | | | | | |
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| | $ | 479,294 | | | | | | | | | | | | | | | | | | | |
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On December 24, 2013, the Company obtained approximately $43.7 million of mortgage debt on three senior living communities from Fannie Mae. The new mortgage loans have 10-year terms with 5.56% fixed interest rates and the principal amortized over 30-year terms. The Company incurred approximately $0.4 million in deferred financing costs related to this loan, which is being amortized over ten years. |
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On December 24, 2013, the Company obtained approximately $5.6 million of mortgage debt on one senior living community from Fannie Mae. The new mortgage loan has a 10-year term with a 5.56% fixed interest rate and the principal amortized over a 30-year term. The Company incurred approximately $0.1 million in deferred financing costs related to this loan, which is being amortized over ten years. |
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On December 23, 2013, the Company obtained approximately $9.5 million of short-term financing on an existing community from Berkadia. The new loan is interest only short-term financing at a variable interest rate of LIBOR plus 4.50% with a maturity date of January 10, 2016. The Company incurred approximately $0.2 million in deferred financing costs related to this loan, which is being amortized over two years. |
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On October 31, 2013, the Company obtained approximately $11.9 million of mortgage debt on one senior living community from Fannie Mae. The new mortgage loan has a 10-year term with a 5.38% fixed interest rate and the principal amortized over a 30-year term. The Company incurred approximately $0.1 million in deferred financing costs related to this loan, which is being amortized over ten years. |
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On October 23, 2013, the Company obtained approximately $11.9 million of mortgage debt on one senior living community from Fannie Mae. The new mortgage loan has a 10-year term with a 5.50% fixed interest rate and the principal amortized over a 30-year term. The Company incurred approximately $0.1 million in deferred financing costs related to this loan, which is being amortized over ten years. |
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On September 30, 2013, in conjunction with the acquisition of one senior living community, the Company obtained interim financing from Berkadia for approximately $8.5 million. The interim financing is interest only at a variable interest rate of LIBOR plus 3.75% with a maturity date of October 10, 2015. The Company incurred approximately $0.1 million in deferred financing costs related to this loan, which is being amortized over the initial loan term. |
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On September 5, 2013, the Company obtained approximately $7.6 million of mortgage debt on one senior living community from Fannie Mae. The new mortgage loan has a 10-year term with a 5.93% fixed interest rate and the principal amortized over a 30-year term. The Company incurred approximately $0.1 million in deferred financing costs related to this loan, which is being amortized over ten years. |
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On June 28, 2013, in conjunction with the acquisition of one senior living community, the Company obtained interim financing from Berkadia for approximately $4.6 million. The interim financing is interest only at a variable interest rate of LIBOR plus 3.75% with a maturity date of July 10, 2015. The Company incurred approximately $0.1 million in deferred financing costs related to this loan, which is being amortized over the initial loan term. |
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On May 31, 2013, the Company obtained approximately $14.5 million of mortgage debt on one senior living community from Fannie Mae. The new mortgage loan has a 12-year term with a 5.30% fixed interest rate and the principal amortized over a 30-year term. The Company incurred approximately $0.2 million in deferred financing costs related to this loan, which is being amortized over 12-years. |
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On May 31, 2013, the Company renewed certain insurance policies and entered into a finance agreement totaling approximately $5.4 million. The finance agreement has a fixed interest rate of 1.97% with principal being repaid over an 11-month term. |
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On March 7, 2013, the Company obtained approximately $4.0 million of mortgage debt on one senior living community from Fannie Mae. The new mortgage loan has a 10-year term with a 4.66% fixed interest rate and the principal amortized over a 30-year term. The Company incurred approximately $0.1 million in deferred financing costs related to this loan, which is being amortized over ten years. |
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On March 7, 2013, the Company obtained approximately $12.4 million of mortgage debt from Fannie Mae to replace an interim financing obtained by the Company from Berkadia on October 23, 2012, in connection with the Company’s previous acquisition of a senior living community. The new mortgage loan has a 10-year term with a 4.66% fixed interest rate and the principal amortized over a 30-year term and is cross-collateralized and cross-defaulted with the approximately $4 million mortgage loan that also closed on March 7, 2013. The Company incurred approximately $0.2 million in deferred financing costs related to this loan, which is being amortized over ten years. |
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On December 28, 2012, the Company obtained approximately $6.4 million of mortgage debt on one senior living community from Fannie Mae. The new mortgage loan has a 10-year term with a 4.5% fixed interest rate and the principal amortized over a 30-year term. The Company incurred approximately $0.1 million in deferred financing costs related to this loan, which is being amortized over ten years. |
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On December 21, 2012, the Company obtained approximately $7.6 million of mortgage debt on one senior living community from Fannie Mae. The new mortgage loan has a 10-year term with a 4.58% fixed interest rate and the principal amortized over a 30-year term. The Company incurred approximately $0.2 million in deferred financing costs related to this loan, which is being amortized over ten years. |
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On December 20, 2012, the Company obtained approximately $17.0 million of mortgage debt on one senior living community from Fannie Mae. The new mortgage loan has a 10-year term with a 4.32% fixed interest rate and the principal amortized over a 30-year term. The Company incurred approximately $0.2 million in deferred financing costs related to this loan, which is being amortized over ten years. |
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On October 23, 2012, the Company obtained approximately $2.6 million of mortgage debt on one senior living community from Fannie Mae. The new mortgage loan has a 10-year term with a 4.34% fixed interest rate and the principal amortized over a 30-year term. The Company incurred approximately $0.1 million in deferred financing costs related to this loan, which is being amortized over ten years. |
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On October 23, 2012, in conjunction with the acquisition of one senior living community, the Company obtained interim financing from Berkadia for approximately $6.4 million at a variable interest rate of LIBOR plus 4.5% with a maturity date of February 10, 2013. The Company incurred approximately $42,000 in deferred financing costs related to this loan, which is being amortized over the initial loan term. The Company obtained long-term fixed rate financing from Fannie Mae on December 28, 2012, to replace this loan. |
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On October 23, 2012, in conjunction with the acquisition of one senior living community, the Company obtained interim financing from Berkadia for approximately $11.6 million at a variable interest rate of LIBOR plus 4.5% with a maturity date of November 10, 2013. The Company incurred approximately $0.2 million in deferred financing costs related to this loan, which is being amortized over the initial loan term. The Company obtained long-term fixed rate financing of $12.4 million from Fannie Mae on March 7, 2013, to replace this loan at a fixed rate of 4.66% with a 10-year term. |
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On October 23, 2012, the Company obtained approximately $26.4 million of mortgage debt on four senior living communities from Fannie Mae. The new mortgage loans are cross-collateralized and cross-defaulted with each other and with the $2.6 million mortgage loan from Fannie Mae that closed on October 23, 2012, and each have a ten-year term with interest rates fixed at 4.34% and the principal amortized over a 30-year term. The Company incurred approximately $0.4 million in deferred financing costs related to these loans, which is being amortized over ten years. |
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On October 17, 2012, the Company assumed approximately $3.2 million of mortgage debt on one senior living community originated by HUD. The mortgage loan has a remaining term of approximately 33-years with a 4.48% fixed interest rate. |
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On June 27, 2012, in conjunction with the Ventas Lease Transaction, existing mortgage debt of approximately $18.3 million was assumed by Ventas with no further obligation to the Company. Approximately $0.1 million of unamortized deferred loan costs were written off in connection with the debt assumption by Ventas. |
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On June 21, 2012, the Company completed supplemental financing of approximately $20.2 million from Freddie Mac at a fixed rate of 4.39% on eight communities with existing mortgage debt maturing in July 2015. The supplemental loans are cross-collateralized and cross-defaulted with each other and with the original mortgage debt. The Company incurred approximately $0.6 million in deferred financing costs related to these loans, which is being amortized over the remaining loan terms. |
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On May 31, 2012, the Company renewed certain insurance policies and entered into a finance agreement totaling approximately $1.4 million. The finance agreement has a fixed interest rate of 2.6% with principal being repaid over an 11-month term. |
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On April 30, 2012, the Company obtained approximately $11.8 million of mortgage debt on one senior living community from Fannie Mae. The new mortgage loan has a ten-year term with a 4.48% fixed interest rate and the principal amortized over a 30-year term. The Company incurred approximately $0.1 million in deferred financing costs related to this loan, which is being amortized over ten years. |
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On March 30, 2012, the Company obtained approximately $11.5 million of mortgage debt on one senior living community from Fannie Mae. The new mortgage loan has a ten-year term with a 4.76% fixed interest rate and the principal amortized over a 30-year term. The Company incurred approximately $0.1 million in deferred financing costs related to these loans, which is being amortized over ten years. |
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On March 30, 2012, the Company obtained approximately $26.1 million of mortgage debt on four senior living communities from Fannie Mae. The new mortgage loans are cross-collateralized and cross-defaulted and each have a ten-year term with interest rates fixed at 4.69% and the principal amortized over a 30-year term. The Company incurred approximately $0.3 million in deferred financing costs related to these loans, which is being amortized over ten years. |
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On March 8, 2012, the Company completed supplemental financing of approximately $5.6 million from Fannie Mae at a fixed rate of 4.47% on three communities with existing mortgage debt maturing in June 2017. The supplemental loans are cross-collateralized and cross-defaulted with each other and with the original mortgage debt. The Company incurred approximately $0.2 million in deferred financing costs related to these loans, which is being amortized over the remaining loan terms. |
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On March 1, 2012, the Company obtained approximately $5.4 million of mortgage debt on one senior living community from Fannie Mae. The new mortgage loan has a ten-year term and a 4.38% fixed interest rate and the principal amortized over a 30-year term. The Company incurred approximately $0.1 million in deferred financing costs related to these loans, which is being amortized over ten years. |
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On March 25, 2011, in connection with the Spring Meadows Transaction, the Company issued standby letters of credit, totaling approximately $2.6 million, for the benefit of HCN on certain leases between HCN and the Company. |
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On September 10, 2010, the Company issued standby letters of credit, totaling approximately $2.2 million, for the benefit of HCN on certain leases between HCN and the Company. |
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On April 16, 2010, the Company issued standby letters of credit, totaling approximately $1.7 million, for the benefit of HCN on certain leases between HCN and the Company. |
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The senior housing communities owned by the Company and encumbered by mortgage debt are provided as collateral under their respective loan agreements. At December 31, 2013 and 2012, these communities carried a total net book value of $601.2 million and $469.8 million, respectively, with total mortgage loans outstanding of $476.2 million and $360.9 million, respectively. |
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In connection with the Company’s loan commitments described above, the Company incurred financing charges that were deferred and amortized over the life of the notes. At December 31, 2013 and 2012, the Company had gross deferred loan costs of $7.7 million and $6.2 million, respectively. Accumulated amortization was $3.2 million and $2.2 million at December 31, 2013 and 2012, respectively. Amortization expense is expected to be approximately $1.1 million in each of the next five fiscal years. |
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The Company must maintain certain levels of tangible net worth and comply with other restrictive covenants under the terms of certain promissory notes. The Company was in compliance with all of its debt covenants at December 31, 2013 and 2012. |