Live Oak Bank Secures Credit Facility for JEA Senior Living
Live Oak Bank is expanding its balance sheet offerings for senior care clients and recently closed a credit facility for national operator JEA Senior Living. The $25 million facility will support JEA’s senior housing acquisitions nationwide as the company continues to grow its portfolio. The structure also allows JEA to both add and remove individual assets within the financing pool, giving them flexibility to move quickly to pursue acquisitions as well as manage future refinancing plans. The first funding under the facility supported JEA’s acquisition of a 38-unit memory care community in Peoria, Illinois, from its REIT landlord. Built in 2012 and licensed for 66 beds, the community has... Read More »
Q2 Senior Care M&A Falls To Seven-Year Low
Well, we can’t say we aren’t surprised. COVID-19 and the economic ramifications stemming from social distancing and quarantine measures took a toll on seniors housing and care M&A, leaving the sector with just 59 publicly announced transactions in the second quarter. Back in early April, we said the second quarter’s deal total would be low and wondered if we’d even get to 50 transactions. Even though we did surpass that level, a closer look at the deals reveals an even bleaker market. The decline in activity is made even more stark after an unprecedented level of deal-making in 2019, with 450 total transactions (not including scores more that were... Read More »
Senior Living Investment Brokerage Announces Four Closings
The floodgates opened at Senior Living Investment Brokerage. Just as we entered July, the firm announced four closings for three skilled nursing facilities and a memory care community. Jason Punzel, Brad Goodsell and Vince Viverito first represented a local owner/operator in their sale of a 59-unit memory care community in Springfield, Oregon (Eugene MSA). This was the seller’s only senior living community, but they will stay on as a consultant post-closing. Originally built in 1988 and expanded in 1996, the community comprised nine buildings across the 5.06-acre campus. It was well occupied at 98%, but new ownership could improve the operating margin which stood at 17% on about $6.52... Read More »
Blueprint Handles Large Pacific Northwest Disposition
Amy Sitzman, Dan Mahoney and Blake Bozett of Blueprint Healthcare Real Estate Advisors handled the sale of eight small assisted living communities divided evenly between Washington and Oregon. News of the deal came out in June with two separate acquisition financing announcements from JD Stettin of Carnegie Capital, the first for the Oregon communities and the second for the Washington ones. Totaling 321 units of assisted living, the portfolio was previously owned by a joint venture between Sabra Health Care REIT and private equity group TPG, with Enlivant as the operator. They were struggling operationally and seen as value-add opportunities. The new owner will also convert a number of... Read More »
Returning Home To Assisted Living
After being pulled out of her assisted living community because of the pandemic, a mother asks to return “home.” In the June issue of The SeniorCare Investor we wrote about how an industry professional lost the argument with his younger sister about moving their mother out of her assisted living community and into the sister’s home. As it turns out, the sister should have listened to him. The sister and her husband were very accommodating, giving up their master bedroom with bath and moving into the guest room. The problem was that this meant the mother was living on the second floor, and since she already had two hip replacements, she was afraid to go up and down the stairs.... Read More »
Fairstead Acquires Another Section 8 Senior Apartment Community
It’s been less than a month since Fairstead, a fully-integrated real estate firm focused on the development, acquisition and operation of affordable and mixed-income housing, purchased a 123-unit affordable senior apartment complex in Sunrise, Florida. But, the firm is doubling down on its strategy and acquired another complex in South Florida. Its newest target is Gould House, a 101-unit Section 8 seniors housing apartment building in Boca Raton. Located in the 100+ acre Jewish Federation of South Palm Beach County Campus, the 30-year old community will receive a $6 million renovation, including upgrades made to all apartments, new kitchens, bathrooms, lighting, HVAC, flooring and... Read More »
Four Refinancings From Lancaster Pollard
Lancaster Pollard announced a series of refinancings for both skilled nursing and seniors housing clients, for over $70 million in total volume across four transactions. First up, Oriol Health Care, a family-owned business, obtained a $16.2 million HUD loan to consolidate their debt with one lender, eliminate interest rate risk associated with a swap, fund repairs and also reimburse capital expenditures at its 123-bed skilled nursing facility in Holden, Massachusetts. The Oriol family built the facility in 1965 but recently expanded it to include a respiratory care unit, a home health care business and therapy services. They own one other facility in the state. Aaron Becker and Adam Walter... Read More »
JLL Handles Youngstown, Ohio Sale
A large senior care campus in Youngstown, Ohio sold earlier this year in a deal handled by Mike Garbers of JLL Capital Markets. Previously owned by a not-for-profit, it was built in stages and now features approximately 300 units spanning the whole senior care spectrum. It was considered a value-add opportunity with some capex needs, and private ownership can usually come in and make some quick expense adjustments at a former not-for-profit operation. Indeed, a for-profit owner stepped in to buy the property at an undisclosed price. This was their first acquisition, but the principal does have experience in seniors housing operations. The deal apparently closed pre-COVID, so some... Read More »
From Atria Senior Living to Elegance Living
Baltimore, Maryland-based Elegance Living, LLC recently named Josh Krull as its CEO. After 13 years at Atria Senior Living. Most recently serving as Senior Vice President – Operations Chief of Staff, Krull worked closely with Atria’s COO to oversee operations of communities across North America. He will be taking over leadership of a company with 46 communities under management in 16 states and approximately 4,150 units, which include 750 units under development. The new developments are located in California (587 units), Washington (73 units) and Virginia (90 units). Two of the communities in California (in Dublin and Novato) are set to open later this year, as... Read More »