Friendly Sale Followed By HUD Financing
Cambridge Realty Capital Companies arranged $28.4 million in HUD financing for a portfolio of three skilled nursing facilities in Ohio, but the road to closing was more complicated than usual. Located in the towns of Niles and Milan, these facilities were put up for sale by their long-time real estate owner/operator. However, during the marketing period, operations declined, and the owner brought in a new operator under a long-term lease. It was the lessee’s goal to eventually own the facilities, and through its ongoing relationship with them, Cambridge helped arrange a friendly sale. Now, with two 35-year terms and one 33-year term, Cambridge structured a $6.08 million loan, a $6.4... Read More »
Strawberry Fields REIT Enters Arkansas Market
Strawberry Fields REIT entered the state of Arkansas in a big way, acquiring nine skilled nursing facilities in the state from one seller, plus one Kentucky facility from another. Totaling 1,004 beds, the facilities were owned by The Skyline Group, which acquired them from AdCare Health Systems, Inc. in October 2016 for $55 million, or 54,780 per bed, after leasing them for several months at a rate of $450,000 per month. The facilities are currently profitable, but report occupancy in the low-70s, with a 15-20% quality mix, and they are now being sold for $37.975 million, or $37,800 per bed. Strawberry Fields REIT will brand these facilities under the “Waters” brand and will add them to a... Read More »
Blueprint Handles Record Sale In Oregon
We just recorded the highest-priced single-asset seniors housing sale in the state of Oregon, in a transaction handled by Blueprint Healthcare Real Estate Advisors’ Dan Mahoney, Jacob Gehl and Blake Bozett. The target is located in Portland and was originally developed in 1992 by the current seller. Also renovated in 2000, the community features 286 units of independent living, assisted living and memory care. Integral Senior Living has managed it since 2011, and managed it well, apparently, as it was 94% occupied with a 100% private pay census. We have also estimated it operated at a roughly 45% margin on approximately $13 million of in-place revenues. Strategic Student & Senior... Read More »
CareTrust REIT Acquires Catholic Health Care Campus In California
CareTrust REIT bought a California senior care campus and brought on a new tenant in its latest transaction. Formerly owned by the Catholic not-for-profit Our Lady of Fatima, the Saratoga campus consists of 85 skilled nursing beds and 37 assisted living units, with both components well occupied. It sold for $19.0 million (which includes transaction costs), or $152,500 per bed/unit, with a roughly 12.8% cap rate. Under the management of CareTrust’s new lessee, Kalesta Healthcare, it is expected to bring in approximately $1.7 million in cash rent for each of the next two years, which thereafter escalates based on CPI. The lease term comes with an initial term of 15 years and two five-year... Read More »
Saul Closes Two Midwest SNF Sales
Ryan Saul of Senior Living Investment Brokerage closed out the month with two Midwest transactions. First, he sold a struggling SNF in St. Charles, Illinois. At 40-years old, the 120-bed facility struggled with cash flow (losing over $1 million in EBITDAR), while occupancy stood at just 58%, with a 55% Medicaid, 28% private pay/insurance and 17% Medicare census. Its Wisconsin-based private owner (who is retired and elected to sell for estate planning purposes) had leased the facility for many years to a not-for-profit. But after the recent affiliation with another not-for-profit health system, they did not want to operate long-term and decided to terminate the lease and transfer operations... Read More »Schedule a demo
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