The Art of Funding the Deal
Eli Kutner of Harborview Capital Partners has been busy of late, closing five acquisition loans that ranged from $3.19 million up to $34.89 million. That largest deal funded the purchase of two skilled nursing facilities (totaling 496 beds) in the towns of Gallatin and Lebanon, Tennessee (Nashville MSA). The loan featured an interest rate of LIBOR+2.85, a 25-year amortization and a three-year term. Staying in the Southeast, the smallest transaction, a $3.19 million loan with an interest rate of LIBOR+3.25, 20-year amortization and three-year term, financed the acquisition of a 135-bed skilled nursing facility in Tampa, Florida. Harborview stayed in the Northeast for the three remaining... Read More »
Canterbury Tales
Ziegler is helping a not-for-profit CCRC that has been operating for about 25 years in Waterford, Michigan (about 40 miles from Detroit) both refund existing debt and fund an extensive repositioning project. Already with 255 rental units, including 75 independent living units, 40 assisted living units and 140 skilled nursing beds, the community is owned by Canterbury Heath Care, Inc. and operated by LCS, which has been managing it since 1995. Times have changed though, and ownership is partnering with Greenbrier Development to build a new 32-bed memory care building (connected by a to-be-built two-story structure) and renovate the existing skilled nursing building to convert 24... Read More »
Public REITs can sell seniors housing assets too
We’ve read a lot about public REITs shedding their skilled nursing assets, but that’s not all they’re selling. A publicly traded REIT sold a pair of West Coast assisted living communities for $23 million, or $365,079 per unit. There is a 48-bed/24-unit assisted living/memory care community in Corvallis, Oregon, and a 78-bed/39-unit AL community in Citrus Heights, California. Over 93% occupied, the communities earned around $6.5 million in annualized revenues. The buyer, Summit Healthcare REIT, triple-net leased the properties for a term of 10 years to an affiliate of Compass Senior Living. Acquisition financing was arranged by Capital One, and Tim Cobb of Blueprint Healthcare Real Estate... Read More »
The Yankees are coming
Winchester, Virginia was the most fought-over town during the American Civil War, changing hands between the North and South as many as 72 times. Now, in a bloodless affair, a 75-unit assisted living community in town has a new owner (New York City-based Care Investment Trust), to the tune of $9.38 million, or $125,067 per unit, with a 7.4% cap rate. The community has undergone expansions since opening in 1990, including a 35-unit addition in 2008, and today includes 73 AL units and two independent living cottages. Both occupancy and the operating margin can be improved, with both standing at 83% and 22%, respectively. Also, monthly rates, ranging from $2,500 to $2,900 for semi-privates,... Read More »Schedule a demo
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