CFG’s transaction trifecta
Capital Funding Group showed off its variety of services in its latest grouping of closings, totaling $25 million in financing. Gary Sever led the way in the largest transaction, closing a $17.6 million HUD construction loan for a to-be-built assisted living/memory care community in Cary, North Carolina. The building is expected to open in May 2017 with 40 AL and 40 MC units. Meanwhile, Jeffrey Stein originated a $5 million cash flow loan for a Texas skilled nursing operator. And finally, Chip Woelper arranged a $2.5 million working capital line of credit for a 141-bed skilled nursing/rehabilitation facility in Los Angeles. Well done to the CFG team. Read More »Clearer skies ahead
The long road to recovery continues for an independent/assisted living community in Tuscaloosa, Alabama. Built in 1998/2000 and non-performing since the Great Recession, the community saw trailing-12 months occupancy around 73%, but that had improved to 90% by the time of the sale, and was climbing. However, the operating margin could definitely be improved from 11% on approximately $1.37 million of revenues. There are 40 units of assisted living in one building, and 12 IL units in a second building on the 11-acre site. A not-for-profit group is the seller, which may explain the higher expenses. A joint venture between a private REIT and a regional operator based in Mississippi was the... Read More »Two dually-certified SNFs sell
A pair of skilled nursing facilities with 235 dually-certified beds in Texas changed hands this month, with the help of Chris Hyldahl and Gideon Orion of Blueprint Healthcare Real Estate Advisors. The facilities combined for a total purchase price of $10 million, or $42,553 per bed, and they differed slightly in quality. The facility in North Central Texas was built in 1969 and was just 74% occupied, while the other facility, located in East Texas, was built in 1982 and had stronger occupancy, at 91%. Both had a quality mix of around 14%. So there will be some work to improve census and quality mix for the regional owner/operator buyer, which purchased the facilities from a national... Read More »
Values in the Seniors Housing and Care M&A Market Jump
For the four quarters ended September 30, average prices in the independent living market have increased, as have assisted living prices and skilled nursing prices. The seniors housing and care M&A market has seen less activity this year than in recent years, but that doesn’t mean buyers are not paying up for the assets they want. The best example is in the independent living market, where the average price paid in the four quarters ended September 30 was $234,000 per unit, or 21% higher than in calendar year 2015. The average cap rate remained steady at 7.0%. Assisted living prices have risen as well, jumping a smaller 5% for the past four quarters compared with 2015 to an average... Read More »Schedule a demo
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