Two quick-fire transactions from RED Capital Partners
From its growing balance sheet construction lending platform, RED Capital Partners announced the closing of two separate transactions within a day of each other. The first was an $8.8 million loan for a 46-unit memory care community in Lakewood, Colorado (Denver area). The borrowers were Taylor Fitzpatrick Capital, the Crystal Group and Milestone Retirement, which will operate the community. And second, RED closed a $13.86 million loan for a 107-unit assisted living/memory care community in Kearns, Utah (Salt Lake City area) being developed by Link Development and managed also by Milestone Retirement. The project is estimated to cost about $17.9 million, amounting to $167,300 per unit,... Read More »NHI/Bickford continuing to grow
As many of you may know, National Health Investors and Bickford Senior Living are in the middle of their joint venture to build 36 assisted living/memory care communities in eight states. The joint venture is mostly funded with borrowings on NHI’s unsecured bank credit facility, but KeyBank National Association recently announced that it secured $78 million in Fannie Mae financing for 13 of the joint venture’s properties, consisting of interest-only payments at 3.79% and a 10-year maturity. The proceeds of the loan will go towards reducing borrowings on NHI’s credit facility. Read More »Valuation and construction
According to the just-published 2015 Senior Care Acquisition Report, valuations of assisted living and independent living communities are reaching unprecedented heights. In seniors housing, we saw a deal in 2015 valued over $500,000 per unit, two deals with prices over $400,000 per unit and a whopping 15 sold over $300,000 per unit. As valuations continue to rise due to the availability of capital, increasing investment demand and sellers with higher quality properties being attracted to sell in this hot market, more and more may look to construction to get into or grow in the seniors housing market. Of course, new development comes with its risks, but as prices continue to rise, buyers... Read More »Northeast priciest to build AND buy SNFs
Not surprisingly, building or buying skilled nursing facilities in the Northeast, where land costs, average income and barriers to entry are high, is the most expensive of the other regions, with an average price per bed in 2014 of $88,200 per bed (according to the 2015 Senior Care Acquisition Report, coming out later this month) and an average development cost of approximately $185,000 per bed in construction projects announced since early 2013 featuring a majority of skilled nursing beds. Those sales of Northeast SNFs featured mostly old facilities, with an average age of about 36 years, which is indicative of the aging product in that region. Read More »Mezzanine financing helps fund new construction
Contemporary Healthcare Capital is helping to finance Medical Development Corp.’s (MDC) new Canterfield brand of assisted living/memory care communities in the Southeast. Currently there are two Canterfield communities open, one in Oak Ridge, Tennessee and one in Forsyth County, Georgia. But there are six more coming, including one in Kennesaw, Georgia. For that project, which should cost around $17 million, or approximately $182,800 per unit to build, Contemporary is providing a $3.1 million four-year mezzanine loan with a rate in the mid-teens, while State Bank and Trust (a local bank with locations across Georgia) is providing a $12.45 million loan with a rate of LIBOR plus 300 basis... Read More »Schedule a demo
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