Bridge Loan Closed in Boonville, New York
Greystone has provided a $10.37 million bridge loan for the refinance of a skilled nursing facility in Boonville, New York, about 25 miles north of Utica. Opened in 1947 but expanded in 1958, 1964 and 1985, the facility features 120 beds and an outpatient occupational therapy program. It was renovated in 2008 and now consists of 54 semiprivate and 12 private units in one story. It is the only skilled nursing facility in a 15-mile radius. The facility’s third-generation family owner/operator wished to refinance existing recourse senior debt and eventually obtain a permanent mortgage, so they worked with Greystone’s Fred Levine to secure a $10.37 million bridge loan. That came with a... Read More »
Truist Provides Refinance to National Senior Campuses
The Obligated Group of National Senior Campuses, Inc. (Obligated Group), which consists of five large CCRCs located throughout the Mid-Atlantic and New England, is currently embarking on a $517 million refinancing that will replace existing debt with long-term financing. Truist Financial Corporation announced that it provided a $136 million loan as part of the package. The communities feature a total of 7,731 independent living, assisted living, memory care and skilled nursing units and are located in New Jersey (Pompton Plains and Tinton Falls), Pennsylvania (Warminster), Massachusetts (Peabody) and Virginia (Springfield). They are owned by the... Read More »
Senior Care Stocks Stay High After Vaccine News
After Pfizer’s vaccine announcement on November 9, pretty much every publicly traded senior care provider and REIT saw their share prices jump significantly. We believe that much of the exuberance was mainly from the removal of uncertainty surrounding both the vaccine and the election, but as we said earlier this month, it is not like no one thought a vaccine would not be available in the months ahead. And there was still the fact that the Pfizer vaccine needs to go through the FDA approval process, not to mention manufacturing tens of millions of doses, and then distributing them. But we also wondered if investors had gotten a little ahead of themselves,... Read More »
CareTrust REIT Adds Skilled Nursing Portfolio
The skilled nursing portfolio deals keep on coming, this time from a familiar source. CareTrust REIT announced its acquisition of four skilled nursing facilities in Texas, around the Dallas-Fort Worth metro area. Totaling 554 skilled nursing beds and 24 assisted living beds, they are currently leased to operating affiliates of The Ensign Group, and have been since Ensign took over operations more than a year ago from Senior Care Centers, which was going through bankruptcy proceedings at the time. The facilities include Beacon Harbor Healthcare & Rehabilitation in Rockwall, Rowlett Health & Rehabilitation Center in Rowlett, Crestwood Health & Rehabilitation in Wills Point and... Read More »
CIBC Finances New Jersey SNF Acquisition
There was another acquisition financing closed by CIBC Bank USA, following the bank’s funding of an Indiana skilled nursing portfolio acquisition and cash-out refinance of a SNF in eastern Kentucky earlier this month. The recent transaction was arranged for a 55-bed skilled nursing facility in northeastern New Jersey. With an effective age of 10 years and occupancy in the 90% range, the facility was operating strongly at EBITDAR margins around 15%. That makes for quite a desirable acquisition. So, a local operator that had been leasing the facility bought it for an undisclosed price but utilizing a $6.3 million acquisition loan from CIBC. As a result of the... Read More »
Benchmark Senior Living Acquires New Hampshire Seacoast Senior Living
Benchmark Senior Living added to its Northeast portfolio with the acquisition of an assisted living community that has been in operation in Rye, New Hampshire for over 20 years. The property last sold in 2017, when EvoLve Senior Living acquired it for $12 million, or $300,000 per unit, with the help of a $10 million mortgage provided by National Health Investors. That loan featured an initial term of five years with renewal options and an interest rate of 8.0%, which NHI funded from its revolving credit facility. Built in 2013, it features 40 units with 64 licensed beds of memory care. It was developed by Sanctuary Care for approximately $13 million and is licensed for 64 beds. However,... Read More »
Recent Senior Care M&A Deals, Week Ending November 20, 2020
Another week, another couple of skilled nursing portfolio deals (plus a few others). Check out our recent senior care M&A deal chart! Long-Term Care AcquirerTargetPrice CareTrust REIT4 skilled nursing facilities in TX$47.6 million Priority Healthcare Group5 skilled nursing facilities in VT$46.6 million United Church Homes, Inc.Harbor Woods Living at Brunswick & Harbor Woods Living at NilesN/A Benchmark Senior LivingEvoLve at... Read More »
The New Skilled Nursing Investment Landscape
How have skilled nursing valuations changed, and when (if ever) will we get back to normal? Those were a couple of key questions in our November 19th webinar titled “Valuing SNFs During The Pandemic.” Our Managing Editor, Steve Monroe, hosted a panel with panelists Laca Wong-Hammond, Managing Director of M&A at Lument, Dan Booth, Chief Operating Officer of Omega Healthcare Investors, and David Reis, Chief Executive Officer of Senior Care Development, in which they discussed a range of topics on how the skilled nursing M&A market has been affected by COVID-19. Another question may be how has the business not changed? First, looking... Read More »
Merrill Commercial Real Estate Closes Another Oregon Transaction
The second property in the receivership sale of a four-facility portfolio in Oregon has sold, with Mike Merrill of Merrill Commercial Real Estate representing the receiver in the deal. This transaction involved a 69-unit independent living community in North Bend, near Coos Bay where the first property of the portfolio sold in August (handled by Tyler Merrill). In fact, the four properties represented a continuum of care for the local area. The North Bend community was built in 1986 and its census steadily improved throughout due diligence to reach 80% at the time of the sale. It was bringing in around $340,000 in NOI on approximately $1.74 million of trailing 12-month revenues... Read More »