Carnegie Capital Secures SNF Bank Refinance
JD Stettin of Carnegie Capital closed a bank refinance for a 90-bed skilled nursing facility in north central Texas. Built in the 1980s, the facility was acquired by the borrower less than two years ago. It was occupied in the high-80s, and while cash flow was positive (with around 30% of its NOI derived from QIPP revenue), it did not cover debt service yet. So, ownership sought a bank refinance totaling $7.0 million. The loan came with an interest rate of 8% fixed for five years, and the borrower could prepay without penalty after year three. Read More »
The Mogharebi Group Closes Seniors Housing Sale
A Los Angeles-based private real estate investment group acquired a 284-unit seniors housing community in Wildomar, California, from Craig Thralls, a local developer. The Mogharebi Group represented Mr. Thralls in the transaction. An entity linked to Positive Investments was the buyer. Built in 2000, Wildomar Senior Leisure Community features 178 independent living and 108 assisted living units. It was fully occupied with a number of units reserved for low-income seniors. The sale involved two separate properties on separate parcels of land, each with their own ground leases. The Mogharebi Group worked with multiple government agencies and around several rent restrictions, and managed to... Read More »
Active Adult and Its Impact on Seniors Housing
Active adult is rapidly emerging as a major subsector within seniors housing, but what are the companies making the biggest plays, how do buyers and lenders value these properties, and what will be the impact on the other seniors housing subsectors? The SeniorCare Investor’s Managing Editor Ben Swett sat down with Mark Myers of Walker & Dunlop, Richard Hutchinson of Discovery Senior Living and Mitch Brown of Senior Housing Consulting to discuss the investment potential in this growing sector. Read More »
Joint Venture Teams Up on Orange County Development
MorningStar Senior Living, Confluent Senior Living and Concord Development Partners have completed a 166,000-square-foot senior living community in Mission Viejo, California. The 132-unit community, MorningStar of Mission Viejo, broke ground in March 2021 and actually completed ahead of schedule, which does not happen often. There are studio, one- and two-bedroom suites as well as 126 below-grade parking spaces. The property also features a pool, dog run, resident garden and al fresco dining. MorningStar of Mission Viejo represents the 14th joint venture between Denver-based Confluent Senior Living (a subsidiary of fully integrated real estate investment and development firm Confluent... Read More »
Ziegler Arranges Bank Bonds for CCRC Expansion Project
Ziegler, a national boutique investment bank, closed $76.0 million of Series 2023 bank bonds for Brazos Presbyterian Homes, Inc. (BPH) to fund an expansion of the company’s community in Austin, Texas, called Longhorn Village. In addition, the bonds refinanced a portion of the outstanding Series 2013B bonds and paid costs of issuance. The Series 2023 bonds are tax-exempt, draw-down bonds supported by a three-bank syndicate comprised of Amegy Bank, Hancock Whitney and Trustmark. Founded in 1960, BPH is a not-for-profit corporation that owns and operates three CCRCs in Texas: Brazos Towers at Bayou Manor, The Hallmark and the aforementioned Longhorn Village. The expansion project consists of... Read More »
Northeast Developer Acquires Land for Active Adult Development
North Reading, Massachusetts-based developer Habitech Acquisitions completed its purchase of a 37.32-acre, four-parcel lot in Stow, Massachusetts for $930,000, with plans to develop an active adult community consisting of 141 units. Jake Parsons of SVN | Parsons Commercial Group | Boston represented the seller, EFMC Associates, and procured the buyer. The project, called The Cottages at Wandering Pond, is in its final stages of permitting. It will consist of two neighborhoods that will be connected by a wetland area. Plans also include a recreation area facing public-access walking trails, a clubhouse, small pool, activity lawn, and a pickleball court. Read More »
SVB, Signature and the CPI’s Impact on Seniors Housing and Care Lending
The last week could have given many on Wall Street whiplash. The closure of Silicon Valley Bank and Signature Bank by the FDIC led to a selloff in the shares of many regional banks late last week and a panicked weekend for many more, with calls for some government intervention to bail out SVB and Signature to stop the spread of more systemic issues. The Biden administration is obliging with a sort-of bailout of both banks by making their depositors whole and hopefully stemming a depositor panic across the country’s banks. And as of Tuesday, stocks for many regional banks started to rally, albeit remaining below their levels before the sell-off. The ordeal, plus favorable CPI data released... Read More »
Blueprint Sells SavaSeniorCare SNF
Blueprint Healthcare Real Estate Advisors sold a 92-bed skilled nursing facility in Kenansville, North Carolina, to an experienced investor looking for growth opportunities for its operating partner in the Tar Heel State. Built in 1975, Kenansville Health and Rehab is located 75 miles southeast of Raleigh and adjacent to ECU Health Duplin Hospital. It had historically maintained stable census and cash flows, helped by the fact it had no direct local competition, but the facility saw census and margin decline after the pandemic. Blueprint was engaged by a longstanding ownership group, led by a distinguished Georgia-based entrepreneur and philanthropist, to effectuate the facility’s sale... Read More »
New England AL Portfolio Secures HUD Refinance
Walker & Dunlop closed a $46 million HUD refinance of Terrace Portfolio, a group of four affordable assisted living communities in Vermont and New Hampshire. Frank Cassidy led the Senior Housing Finance team in the transaction, which took out a bridge loan that the Walker & Dunlop team previously arranged in December 2020 to facilitate a partner buyout and re-leveraging of the portfolio. The bridge loan was structured as eligible debt in anticipation of the HUD takeout. The portfolio includes Wheelock Terrace, a 70-unit assisted living community located within 15 miles of two hospitals in Hanover, New Hampshire, and Windham Terrace, a 71-unit assisted living community in... Read More »