60 Seconds with Steve Monroe: Venting About Medicare

Okay, I know it is the season to be jolly, but it has been a while since I have had something to vent about. When I signed up for Medicare two years ago (I know, hard to believe) I signed up for everything except Part D drug coverage. I had no prescriptions so why get coverage I didn’t need. Two years in, for a variety of reasons, I decided to sign up even though I still have no prescriptions. Just being conservative. A week after receiving my approval letter from United Healthcare, I received another letter saying I would be charged a “Late Enrollment Penalty” fee on my monthly premium. Because I had two years of no coverage, they use that period to calculate the monthly penalty. This... Read More »
Portfolio Sale in the Carolinas Receives Financing

Portfolio Sale in the Carolinas Receives Financing

LTC Properties has more than doubled its loan origination volume for the year with a unitranche loan provided to fund the purchase of 13 seniors housing communities in the Carolinas. The $52.5 million loan bears interest at 7.25% for a term of four years, with an IRR of 8%. It also provides for additional commitments of $6.1 million for capital improvements and $650,000 for working capital needs, bringing the total investment commitment to approximately $60 million.   We learned that Patrick Burke of Senior Living Investment Brokerage handled the portfolio sale. Totaling 523 units and 967 beds, the properties include a mix of independent living (2%), assisted... Read More »
Evans Senior Investments Facilitates SNF Sale in New Mexico

Evans Senior Investments Facilitates SNF Sale in New Mexico

Evans Senior Investments represented the seller of a 100-bed skilled nursing facility in New Mexico for an undisclosed amount. A Chicago-based skilled nursing facility owner bought the facility from a regional owner/operator based in Louisiana. The acquisition presented an opportunity for a new operator to grow its presence in New Mexico.  The facility, which was built in the late 1990s, is approximately 50 miles away from the nearest nursing home in New Mexico. Shortly before going to market, it experienced an outbreak of COVID-19, which led to the loss of over 25 residents and lowered occupancy to an all-time low of 46% (after averaging 93% in fiscal year 2019). However, census... Read More »
NewPoint Acquires HHC Finance’s HUD Businesses

NewPoint Acquires HHC Finance’s HUD Businesses

NewPoint Real Estate Capital LLC, a joint venture between Meridian Capital Group and Barings, announced that it has acquired certain assets of Housing & Healthcare Finance, including its FHA multifamily and healthcare origination business and its loan servicing portfolio. This deal augments NewPoint’s existing HUD lending services and also its healthcare and seniors housing financing capabilities. For HHC Finance, the firm gains the backing of NewPoint’s scale and its own range of services offered, now including a multifamily bridge lending program which was launched earlier this month to provide loans of $5 million to $50 million with... Read More »
Not-For-Profit Indiana Community Sells to For-Profit Owner

Not-For-Profit Indiana Community Sells to For-Profit Owner

A not-for-profit assisted living community in Georgetown, Indiana is set to sell to a for-profit owner at the end of this year. Few details were released, but we learned that Senior Living Investment Brokerage was involved in the sale. A New Jersey-based firm, with Joseph Glatzer serving as one of the principals, was revealed as the buyer.   The community opened in 2008 under the ownership of Providence Self Sufficiency Ministries, providing “small house” senior care services. Each 7,100-square-feet villa contains 10 private bedrooms, private bathrooms, a large living room with fireplace, an open kitchen and dining room, a therapeutic spa, a den, a patio/garden and a small office... Read More »
Operator Exits Texas Skilled Nursing Facility

Operator Exits Texas Skilled Nursing Facility

Senior Living Investment Brokerage’s Matthew Alley handled the sale of Retama Manor Nursing Home, a 142-bed SNF in Victoria, Texas. Built in 1969, the 29,510-square-foot facility sits on three acres and has a 50% occupancy. Its revenue came close to $4.7 million, which does not include additional QIPP revenue, but the facility was not profitable. A healthy bidding environment for the facility pushed the price above asking, or more than $25,000 per bed. The seller is an independent owner that had a lease in place with an operator that chose to exit when its agreement expires on December 31, 2021. The buyer is an owner/operator that will be taking over operations on January 1, 2022. The... Read More »
Ziegler Closes Financing for Texas Owner/Operator

Ziegler Closes Financing for Texas Owner/Operator

Ziegler has closed $116.1 million of Series 2021 bonds for Methodist Retirement Communities (MRC), a not-for-profit based in Texas which currently owns and operates 13 seniors housing communities throughout the state. Once the bonds are closed, two communities will join four MRC-affiliated communities currently comprising the MRC Obligated Group. Proceeds of the bonds, which are being privately placed with Truist Bank and Hancock Whitney Bank, will be used to refinance the existing indebtedness of the two communities.  Ziegler implemented a “Cinderella” refunding structure where Series 2021 taxable bank bonds (which convert to tax-exempt bonds at the first call date) advance refunded the... Read More »
CCRC Development Set to Break Ground in North Carolina

CCRC Development Set to Break Ground in North Carolina

A large, not-for-profit CCRC that is home to 300 residents in Wilmington, North Carolina is set to break ground on an expansion project to the tune of nearly $57 million. Opened in 1988 on property donated by retired railroad executive Champion “Champ” McDowell Davis, Plantation Village sits on 58 acres. It is managed by Iowa-based Life Care Services, which will help oversee the expansion. The project will include 44 new homes in four new buildings, with two-bed/two-bath and two-bed/2.5-bath options starting at 1,515 square feet that include under-building garage parking. There will also be new indoor and outdoor dining venues and services. CJMW Architecture and Frank L Blum Construction,... Read More »
Luxury Development Underway in Memphis

Luxury Development Underway in Memphis

Seniors housing developer SageStone Partners and The Arbor Company have teamed up to develop Opus East Memphis, a 237-unit luxury community set to open its doors in early 2023 in Memphis, Tennessee. Opus will feature 47 independent living cottages, 107 IL apartments, 63 assisted living units and 20 memory care units, with a host of resort-style amenities and services. Opus will also offer a fitness center, restaurant-style dining and on-site therapy and rehabilitation. The information center will open in January 2022, giving prospective residents a first look at the development. Since 2014, SageStone has completed nine senior housing projects totaling more than 1,500 units. Read More »
Capitol Seniors Housing Sells High-End Portfolio

Capitol Seniors Housing Sells High-End Portfolio

REITs and private equity firms were responsible for the largest transactions recorded in November, and most recently, an institutional private equity fund first spent approximately $250 million in cash on a portfolio of six seniors housing communities owned by Capitol Seniors Housing. Four of the communities, including three operated by Arbor Company and one by Chelsea Senior Living, were developed in the last few years in Maryland (2) and New Jersey (2). There was also a 92-unit assisted living/memory care community in Tampa, Florida acquired in 2015 (upon certificate of occupancy) for $20 million, or $217,400 per unit, and an 80-unit independent living community in Herndon, Virginia... Read More »
NewPoint Acquires HHC Finance’s HUD Businesses

Meridian Capital Group Announces Latest Activity

Another month, another slew of closings from Meridian Capital Group. The Senior Housing and Healthcare team including Ari Adlerstein, Ari Dobkin, Josh Simpson, Matt Lesnik, Jesse Rauch, Rafi Sod, Yuval Hananya, David Gottlieb, Jacob Scott and Brett Hebert negotiated the transactions, which included several refinances, acquisition loans and two property sales.  The targets in the sales included a 103-unit assisted living/memory care community in Missouri that sold for $10.2 million, or $99,000 per unit, and a 90-unit AL/MC community in Utah that sold for $6.5 million, or $72,200 per unit. Meridian’s Avi Begun arranged acquisition financing for both properties, with an $8.3 million loan from... Read More »