Berkadia Refinances Five SNFs Across the Country
Berkadia Seniors Housing & Healthcare recently announced $47 million in financing for five skilled nursing facilities across the country. Managing Director Jay Healy secured the financing on behalf of the borrowers. First, we have the HUD refinancing of a 40-bed/unit, Medicare-only SNF in Sacramento, California. The $14.45 million, 48% LTV HUD loan retired the construction debt and covered transaction costs for the California-based client. That puts the value of the property at $29.65 million, or around $740,000 per bed. We’ve heard of the high values SNFs command these days, but nothing like that. However, it was built in 2019, was certified for Medicare in August 2019 and only... Read More »
Live Oak Bank Provides Bridge Loans To Stabilizing Properties
Live Oak Bank ended 2021 by closing three loans for senior care clients totaling over $50 million. First, Mississippi-based Claiborne Senior Living received a $33.5 million loan to facilitate a partner buyout for a Class-A, 213-unit independent living, assisted living, and memory care community built in 2017 in Baton Rouge, Louisiana. Claiborne took over management in early 2021 and added net 41 residents YTD through November 2021, or more than three residents per month. Locust Point Capital partnered with Claiborne to complete the capital stack. Approximately $1.8 million in loan proceeds will support capex improvements, enhanced programming, and a marketing campaign to rebrand the... Read More »
Welltower Updates Census Progress
Welltower has the largest owned portfolio of seniors housing communities among the healthcare REITs (SHOP) and census has been steadily rising since the bottom early last year. But the rate of growth, like many others, has been slowing. Average U.S. occupancy growth was 30 basis points in October, 50 basis points in November and zero in December. Spot occupancy for the U.S. portfolio ended December at 77.8%, or 90 basis points above September 30. That’s not too bad for a fourth quarter, but December was disappointing and most likely reflected the holiday season as well as the spreading Omicron variant. Up until December they had had nine consecutive months of increased occupancy. The good... Read More »Ventas Provides Census Update
Ventas has the second largest SHOP portfolio among the healthcare REITs, so it is always a decent barometer for what is actually happening in the seniors housing market. The REIT’s portfolio has performed exceptionally well since the bottom of the market in mid-March 2021, as have most of the providers across the country. The easing of restrictions as well as the vaccine combined for a robust turnaround that we all knew would come at some point. However, we all knew (well, some of us) that the unprecedented net gains in the second and third quarters last year were not sustainable, as much as we would have liked them to be. Call it the pent-up demand or anything else, with portfolios... Read More »
Two Stabilized MC Communities Find New Owner
An owner/operator successfully recapitalized two newly constructed, Class-A standalone memory care communities located in the Oklahoma City and Dallas Fort-Worth MSAs. The 2016- and 2018-built communities total 76 units (36 and 40 respectively) and were developed and managed by an experienced operator, who will stay on to manage operations. It is worth noting that both assets demonstrated consistent upward trending operational performance despite the COVID-19 pandemic. Occupancies exceed 95% and generated $5.9 million in total revenue, and $1.9 Million in EBITDAR representing an impressive 32.5% operating margin. No wonder the current operator is staying on. Blueprint Healthcare Real... Read More »
Dwight Capital Reports Active Q4
Dwight Capital closed $291.46 million in seniors housing and healthcare financings during the fourth quarter of 2021, including bridge loans for the Certus Portfolio, Solaris Portfolio, and Epic Portfolio. These transactions were funded through the firm’s commercial mortgage REIT, Dwight Mortgage Trust. Featured among Dwight’s Q4 closings are an $89 million bridge acquisition loan for a 1,352-bed portfolio of fifteen skilled nursing facilities located across Ohio. The borrower, Certus Healthcare Management, plans to invest in a capex plan to complete interior improvements across these properties. In the Southeast, Dwight has seen a lot of activity. They closed a $48.28 million bridge... Read More »
Presbyterian Manors of Mid-America Expands Into Colorado
Presbyterian Manors of Mid-America has broken ground on their newest CCRC, Aberdeen Ridge, thanks to the recent successful closing of their $140.02 million Series 2021 bonds issued through the Colorado Health Facilities Authority and underwritten by Ziegler. This is PMMA’s first venture into Colorado. The faith-based, not-for-profit corporation is headquartered in Wichita, Kansas and operates 15 senior living communities and two hospices across Kansas and Missouri, serving over 2,400 residents. In 2018, PMMA acquired a Texas not-for-profit corporation, which owned an undeveloped 15.25-acre site within 1.5 miles of Garden of the Gods National Park, and which already had the permits and... Read More »
Two High-Quality SNFs Sell in Florida
We don’t see too many transactions take just six weeks from engagement to closing, but the Blueprint Healthcare Real Estate Advisors team got it done for a Florida-based owner/operator seller. They were looking to divest two Florida skilled nursing facilities totaling 300 licensed beds and over 100,000 square feet, and after engaging Blueprint at the start of November gave them until the end of the year to close on an off-market sale. These were high-quality facilities located near local medical centers in the towns of Palatka (Jacksonville MSA) and Ocoee (Orlando MSA). An undisclosed owner/operator bought the facilities for $51 million, or $170,000 per bed, showing just what buyers are... Read More »
SCOTUS and POTUS
We have to assume that during the remaining three years of President Biden’s term, there will be more battles between POTUS and SCOTUS. But it is getting increasingly difficult to determine who is winning. Take the recent SCOTUS decision upholding the vaccine mandate for healthcare workers in facilities that receive Medicare and Medicaid payments. We all want healthcare workers to be safe, as well as the patients that they serve. But the timeline given for these healthcare workers to be 80%, then 90%, then 100% vaccinated, or else they lose their jobs, well, is it really going to do anyone any good if the staff at hospitals and nursing homes gets reduced further? The simple answer is, no.... Read More »