Several Companies Report August Occupancy Gains
Several companies have released occupancy updates for the month of August, and there were some mixed results. However, for the most part, these top players reported large basis-point gains over several months, and even between July and August. This consistency among businesses bodes well for a return to normalcy in the skilled nursing and seniors housing industries. After announcing their agreement to provide Recovery Centers of America with a $325 million mortgage loan this week, Sabra Health Care REIT, Inc. reported occupancy gains across several of their portfolios. Among their top eight skilled nursing operators, they have seen a 554-basis point increase between late December 2020 to... Read More »
Tryko Adds to Rhode Island SNF Portfolio
Tryko Partners added to its Rhode Island skilled nursing portfolio with the acquisition of a 120-bed facility in North Kingstown. Named Scalabrini Villa, the one-story facility is set on a bucolic property facing Narragansett Bay. The Brown family (Brown University’s namesake) donated the site to Rhode Island Hospital, which operated a children’s hospital there for decades. Then in 1956, Bishop John Baptist Scalabrini purchased the property, opening The Bishop Scalabrini Home for the Aged, which provided senior care services to the community. The current SNF opened in 1994 and now features two 60-bed units, each with 12 private rooms and 48 semi-private rooms.... Read More »
Seattle Seniors Housing Community Wraps Up Construction
Wesley Homes, Presbyterian Homes & Services (PHS) and Ryan Companies teamed up nearly three years ago to develop a large senior living community in Seattle, and has recently completed the project. The 405,992-square foot senior living community, called Wesley at Tehaleh, exists within the master-planned community of Tehaleh by Newland in Bonney Lake, a suburb of Seattle. The Tehaleh community is owned in a joint venture partnership between North America Sekisui House, LLC (NASH), and Newland, the master developer of the community. The 16.8-acre community features two buildings called The Lodge and The Brownstone, and consists of 18 memory care apartments, 168 independent living... Read More »
MedCore Partners Divests Washington State Community
After purchasing a portfolio of seven seniors housing properties from Ventas in July 2020, MedCore Partners is divesting one of the properties in Sedro-Woolley, Washington (about 75 miles north of Seattle). The 2020 acquisition comprised six other communities in Washington (Sequim, Olympia, Centralia and Tacoma) and California (San Juan Capistrano and Westminster), and in total sold for $52 million, or $89,300 per unit. Still operated by Senior Services of America, there are 582 total units of independent living, assisted living and memory care. MedCore made the acquisition with The National Realty Group and Kong Capital, originally agreeing to a purchase price of $70 million but lowering... Read More »
DigitalBridge Divests Two Kansas Communities
DigitalBridge Group, formerly known as Colony Capital, recently announced it was divesting its healthcare real estate assets in order to focus on its digital infrastructure business. Two of the seniors housing properties have found a new owner with the help of Ben Firestone, Michael Segal and Lauren Nagle of Blueprint Healthcare Real Estate Advisors. The two communities, located in the Kansas City, Kansas MSA, were built in the early 2000s but have received subsequent renovations. Leawood Gardens is a 70-unit assisted living/memory care community in Johnson County, and Blackhawk Assisted Living has 48 units of AL and MC in Miami County. According to our M&A... Read More »
HJ Sims Refinances Benedictine Health System
Benedictine Health System, a Minnesota-based not-for-profit organization affiliated with the Catholic church, recently obtained $132.4 million in financing arranged by HJ Sims. Historically, the organization and its affiliates were financed on a standalone basis, resulting in 36 separate series of outstanding debt for 19 different borrowers. Plus, the series were held by eight different banks or servicers with disparate terms, covenants and reporting requirements. As such, the board and executive leadership team wanted to restructure its capital framework, change its service mix and invest in improvements at existing campuses, and engaged HJ Sims in August 2020. Sims built an initial... Read More »
Connecticut Community Gets Construction Financing
Senior Living Development LLC secured a $16 million construction loan for KindCare at Bristol, a to-be-built, middle-market assisted living community in Bristol, Connecticut (Hartford MSA). The community, which will feature 117 beds of both assisted living and memory care, is situated on one acre in downtown Bristol. It will be the first of Senior Living Development LLC’s KindCare assisted living brand, which caters to the middle market. Rates average 20% less than luxury AL options, and this specific project is also taking advantage of the tax benefits being in a Qualified Opportunity Zone. Construction is expected to start this October and finish in early 2023. The developer... Read More »
Lument Finds New Owner for Philly CCRC
A CCRC outside of Philadelphia, Pennsylvania, changed hands with the help of Laca Wong-Hammond and Dominic Porretta of Lument Securities. In addition to facilitating the confidential sale, the Lument team also handled the assumption of the property’s HUD mortgage. Built in 1967 but renovated multiple times over the years, including a major refurbishment in 2014, Bryn Mawr Terrace is located about 10 miles from downtown Philly on the Main Line. It features 109 functional skilled nursing beds (with a license for 120 beds), 25 memory care units and eight personal care units. It had operated well historically, but the pandemic caused cash flow to fall, and there was no positive NOI by the... Read More »
HHC Finance Wraps Up HUD’s FY21
Housing & Health Finance (HHC Finance) is finishing up HUD’s fiscal year 2021 with a few transactions. First, the firm closed a $13 million refinance of an existing HUD loan for a 200+ bed skilled nursing facility in Illinois. In the transaction, HHC Finance substantially lowered the interest rate. HHC Finance also closed on a new $8 million HUD loan for a 90-bed skilled nursing facility in northern California. Lastly, the firm added to its tally of loan modifications for the year by lowering the interest rate on a $4 million loan for one of its clients. Read More »