Chad Elliot, Quintin Harris and Kevin Laidlaw of Lancaster Pollard represented the seller of a six-facility skilled nursing portfolio in Iowa. Owned by Hawkeye Care Centers, these six facilities total 551 beds, with three of the properties featuring a small assisted living or independent living portion. Quality mix was high (over 50%) and operating margin averaged in the low teens, which is not too bad for skilled nursing in this market. The Lancaster Pollard team sold the portfolio to Summit Healthcare REIT for $29.5 million, or about $53,500 per bed. Summit entered into a triple-net lease agreement with Accura HealthCare, an Iowa-based operator with 18 facilities across the state.
Lancaster Pollard also closed a couple of HUD loans for clients across the country. Mr. Harris arranged a $10 million loan, with a 35-year term, for a 70-unit assisted living community in Andover, Minnesota. Aaron Becker then worked with First Atlantic Healthcare Corporation to facilitate a $15.3 million equity-out bridge loan for its 85-unit assisted living/memory care community in Portland, Maine. First Atlantic was able to use approximately $760,000 for community repairs and $260,000 for replacement reserves.
