Banc One funds LNR projects Columbus, Ohio-based Banc One Capital Funding Corp. has provided $3.7 million in permanent financing for an affordable seniors housing project owned by Portland, Ore.-based LNR Affordable Housing Inc. The project, River Ridge apartments in Missoula, Mont., received low income housing tax credits (LIHTC).

River Ridge apartments is a 70-unit active seniors project in Missoula, Mont. Two units are set aside for residents who earn 25% or less of area median income, while 13 are reserved for tenants at 50% of area median income and 55 are reserved for tenants earning no more than 60% of area median income.

ARV ordered to pay Emeritus A California state court has ordered Costa Mesa, Calif.-based ARV Assisted Living Inc. to pay rival Seattle-based Emeritus Inc. $5.4 million as a result of a lawsuit Emeritus brought in April 1998. In the suit, Emeritus alleged that an ARV shareholder rights agreement had been triggered during a 1997 takeover battle.

Emeritus became an ARV stockholder in 1997 and made a hostile takeover bid of $210 million while ARV was putting the final touches on an offer from Lazard Freres Real Estate Investors LLC. ARV was set to sell a 49.9% stake in the company for $130 million. The offer was later reduced to a 38% stake, but Lazard entered into a voting agreement with members of ARV's management who held about 9% of ARV stock. Emeritus argued the Lazard offer exceeded the 50% beneficial ownership threshold that would have allowed Emeritus to buy ARV shares at half of the then-market price. At the time, Emeritus owned about 1 million shares of ARV.

At the trial, Emeritus argued that the rights agreement was not triggered because the stock purchases by Lazard were approved by the ARV board and were, thus, expressly exempted from the 50% trigger level. The California court agreed with Emeritus, granting $5.4 million, rather than the $18 million sought, in damages.

Freddie Mac, Glaser close on enhancements for Brookdale McLean, Va.-based Freddie Mac and St. Paul, Minn.-based Glaser Financial have closed on a $65 million credit enhancement for The Heritage, in Des Plaines, Ill., and The Devonshire, in Lisle, Ill., owned by Chicago-based Brookdale Living Communities Inc. The mortgage credit enhancement replaces letters of credit on bonds issued by the Illinois Development Finance Authority and the Housing and Redevelopment Authority of the Village of Lisle. Both transactions involve variable-rate, tax-exempt securities. The properties provide 573 apartments.

Both transactions involve variable-rate, tax-exempt securities.

The bonds financed The Heritage, in Des Plaines, Ill., and The Devonshire, in Lisle, Ill. The properties provide 573 apartments for independent living, assisted living and congregate care.

The first property, Sierra Pines, is a 90-unit project in Las Vegas built for active seniors aged 55 and older with incomes at 50% or less of area median income. The mid-rise received a $3.75 million loan with 89% LTV and 30-year amortization.

Two units are set aside for residents who earn 25% or less of area median income, while 13 are reserved for tenants at 50% of area median income and 55 are reserved for tenants earning no more than 60% of area median income.