Walker & Dunlop Announces Georgia Portfolio Sale
The Walker & Dunlop Investment Sales team including Joshua Jandris, Mark Myers, Brett Gardner and Jordyn Berger has closed the sale of an independent living portfolio in the Atlanta, Georgia metro area. Not only that, but Russ Dey of Walker & Dunlop secured acquisition financing through Freddie Mac on three of the properties. More details on the transaction will be revealed next week, but what we know is that the portfolio comprises four newly built, “A” quality communities, with a combined 559 units. Dubbed “The Mansions Portfolio,” the communities were previously owned by a consortium of local and out-of-state developers. Focus Healthcare Partners was the buyer. Stay tuned next... Read More »
CIBC Bank USA Refinances Two Tennessee SNFs
Two skilled nursing facilities in Tennessee recently refinanced their debt with the help of CIBC Bank USA. Totaling 340 licensed beds with an effective age of 20 years, the facilities have been run by a local operator for a number of years. Under that management, effective occupancy has been in the 70% range, with EBITDAR margins in the high-teens, which is quite good for SNFs these days. With that lower occupancy, we’re guessing there was a healthy Medicare and/or private pay patient census. Ownership obtained a five-year, $20 million loan on the real estate, also giving them some cash out. CIBC Bank USA also helped secured a $1.0 million capital expenditures facility for... Read More »
Tryko Partners Developing Pittsburgh Seniors Housing
Selected by The Urban Redevelopment Authority of Pittsburgh to redevelop a former school in the city to serve the needs of both low-income and middle-income seniors, Tryko Partners just obtained a gap financing commitment from the Pittsburgh Housing Authority to help fund the project. Formerly the Fairywood School in the city’s west end, the site will include a total of 46 one-bedroom units with covered porches, including 39 reserved for low-income residents. There will also be a community building where residents can take advantage of financial literacy, nutrition and exercise programs, health screenings, and other support services for seniors. The project would also anchor a... Read More »
LTC Properties Transitioning Senior Lifestyle Corp.
LTC Properties reported fourth quarter and full year earnings late last week, and while there is some uncertainty, management appears to have a good handle on how they are dealing with it. This is especially true with the 23 communities leased to Senior Lifestyle Corporation (SLC), which we will get to below. One interesting statistic that came out is that with 71% of their private pay tenants reporting, actual occupancy dropped from 79% on September 30 to 72% on December 31, one of the largest quarterly declines we have seen. The good news is that one month later occupancy stood at 71% on January 31, so the rate of decline has slowed significantly. LTC’s... Read More »
Ziegler Closes Nine-Figure Refi
Investment banking firm Ziegler closed a $114.82 million tax-exempt refinancing for Springpoint Senior Living, a major regional not-for-profit provider based in New Jersey. Springpoint operates eight CCRCs (LPCs) in New Jersey and Delaware, 19 affordable housing communities, a home care agency and a continuing care at home program. Springpoint formed a new obligated group for this refinancing, which consists of the corporate entity plus the six CCRCs in New Jersey. The new financing repaid outstanding debt and also reimbursed the obligated group for $25 million in recent capital expenditures. The $114.82 million bond issue was rated BBB+... Read More »
Another University-Based CCRC Finished Construction
We wrote last week of a major seniors housing development in the works on the campus of SUNY Purchase in Westchester County, New York (one that is estimated to cost upwards of $320 million when all is said and done), but a similar project on the campus of Arizona State University just completed construction. Mirabella at ASU is a not-for-profit CCRC with 246 units of independent living and 52 health care units, as well as a host of luxury amenities in the sleek, 20-story building. Some of those features include an indoor pool and wellness center, physical therapy gym, theater, art museum, event and lecture hall, game rooms, salon and spa, dog park, valet and... Read More »
Recent Senior Care M&A Deals, Week Ending February 19, 2021
Senior care M&A seems to be going through a slow patch, but here is our most recent deal chart. Long-Term Care AcquirerTargetPrice Harrison Street Real Estate CapitalThe Residence at Watertown Square$45 million+ Regional owner and operatorThe Terrace at Woodland$10 million Avanath Capital ManagementThe Grove Senior Apartments$19.8 million Tryko Partners, LLCRegina Community Nursing... Read More »
Ventas Census Hits Low
Things will definitely start to get better as the vaccine finishes its roll out in senior living communities, but even more ground will have to be made up as a result of the continued deterioration in census in the past few months. Ventas, which just released its fourth quarter and full-year 2020 results, has not been immune to these declines, yet they see the light at the end of the tunnel. On a same-community basis, the senior housing operating portfolio (SHOP) occupancy level dropped by 870 basis points in the fourth quarter compared to the same quarter last year, to a low of 79.6%. This is a total of 377 communities. But when the Canadian communities are removed (68... Read More »
Evans Senior Investments Sells Upstate New York Community
Evans Senior Investments handled the sale of an assisted living/memory care community in Rome, New York, about 15 miles northwest of Utica. Built in 2009, the community is licensed for 48 AL and 12 MC beds, and also holds an Assisted Living Program (ALP) Medicaid license on 16 beds. Over the past 12 months, it has averaged 90% occupancy, with an 80% private pay census. Its operating margin has also been strong, at 29% on more than $2.6 million of revenues. But that could be improved by a new and potentially larger owner. The independent owner/operator worked with Evans to find a buyer, which ended up being a regional owner/operator looking to expand its presence in the state and... Read More »