Lancaster Pollard closes 21 deals
Lancaster Pollard had a busy month in May, closing 21 seniors housing financing transactions totaling over $136 million. Most of the loans were through HUD, including four refinances for skilled nursing facilities in Georgia and Florida, two FHA 232/241(a) expansion projects for skilled nursing facilities in the Midwest, and a $23.5 million new construction loan through HUD for an assisted living/memory care community in Virginia. Five of the transactions were for note modifications of existing HUD loans, while six were either refinances or rehabilitation loans for affordable seniors housing properties. LP facilitated one term loan placement of $7.4 million for the construction of a... Read More »Health Care REIT looking North, again
In its existing RIDEA joint venture with Revera, Inc., Health Care REIT purchased Regal Lifestyle Communities, a Toronto-based operator of 23 independent living communities with more than 3,600 units. The joint venture, with HCN owning 75% and Revera 25%, will pay CAD$12.00 per share (a 27.1% premium), or approximately US$623 million ($173,100 per unit), for the portfolio, assuming CAD$359 million (US$ 291.9 million) of debt with a weighted average interest rate of 3.8% and an average maturity of four years. The initial cash yield is expected to be 6.1%, with HCN investing US$248.8 million in the transaction. The communities, located in Ontario (13), Quebec (7) and one each in British... Read More »Mainstreet’s move into Kansas
Where does Mainstreet go next? The developer of post-acute/assisted living facilities has already developed 19 facilities in Indiana since 2009, with five more coming in the next year. It has also constructed one facility each in Illinois and Colorado. Not much for geographical diversity. However, that will soon change, helped in large part by the company’s planned five-year, $5 billion development pipeline. One state where Mainstreet already has shovels in the ground is Kansas. For three of the projects, in Kansas City, Overland Park and Olathe, Mainstreet partnered with The Ensign Group to develop the facilities. And Mainstreet just last week broke ground on the fourth project, a 94-bed,... Read More »What’s the portfolio premium?
Historically, buyers will often pay up for a portfolio (which we have defined as three or more properties in a single transaction) as opposed to a single facility. The “portfolio premium” has to do with both quality and the number of properties. Of course, not every buyer will pay more for a facility just because it is part of a portfolio, nor is the quality always inferior at a single facility. Still, according the 20th edition of the Senior Care Acquisition Report, in 2014, assisted living portfolios were valued on average at $206,000 per unit (compared to $153,900 per unit in 2013), while other sales averaged $172,700 per unit (144,000 per unit in 2013). That represents a premium of... Read More »Schedule a demo
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