Would you buy a Certificate of Occupancy?
There is always a good amount of risk when purchasing a seniors housing community at Certificate of Occupancy. While you avoid the risks associated with development and construction costs, you are saddled with the burden of fill-up. But Capitol Seniors Housing (CSH) is up for the challenge, having recently purchased, along with its joint venture partner Harvard Management Company, a 92-unit/109-bed assisted living/memory care community in Tampa, Florida. The newly opened community was developed by a joint venture between Walt Chancey and Rookis Development Company and presold to CSH prior to breaking ground for an agreed price of $20 million, or $217,400 per unit. CSH has brought in The... Read More »Wells Fargo expands seniors housing construction financing platform
With construction heating up in the seniors housing industry, Wells Fargo is looking to position itself to help fund that growth using its balance sheet, floating rate lending platform. It started about a year ago when Wells Fargo brought in Mark Cotsakis, who had been with the bank for over 25 years, to head the newly formed Senior Housing Finance Group (SHFG), part of the Wells Fargo Commercial Real Estate Group. Since then, Mark and his team of about 18 have been hard at work, with approximately a half-billion in closings in the past year, and they are set to close another quarter-billion in the next two months, totaling some 30 transactions. The closings have ranged from $8 million to... Read More »Trilogy Health Services expands in Louisville, again
Trilogy Health Services recently announced that it is opening its 91st health campus, and its fifth in the Louisville, Kentucky area alone. Dubbed “Forest Springs Health Campus,” the community follows Trilogy’s basic prototype of 50 skilled nursing beds and 45 assisted living units, but with the addition of about 30 independent living villas. Altogether, the 115,000-square foot campus will cost approximately $13 million or $104,000 per bed. Louisville-based DMK Development was the developer of the project, having previously done 18 senior living projects with Trilogy in Kentucky, Ohio, Indiana and Michigan, and with more to come (Trilogy, as you may know, has also worked with Mainstreet in... Read More »Hotel conversion to seniors housing
When a hotel in downtown Fort Myers, Florida is lying vacant for almost 10 years, what do you do with it? Convert it to seniors housing of course! At least, that is the plan of The MacFarlane Group, a developer of residential housing in Fort Myers who is looking to make its first move into seniors housing (who isn’t these days?). The reason behind the hotel’s vacancy is rooted in a one family’s dysfunction, who, when the family patriarch passed away, couldn’t agree on what to do about the property. Meanwhile, the empty hotel took up valuable acreage in downtown Fort Myers, much to city officials’ chagrin. So, MacFarlane stepped in last year to buy the property, which it eventually did in... Read More »MOB to Senior Living?
Monarch Senior Living is trying something new in seniors housing development. The company acquired a vacant 17,800 square-foot medical office building (MOB) in La Jolla, California for $7.115 million, which it plans to convert into a 26-unit/44-bed memory care community. Monarch will own the community with Menlo Park, California-based real estate equity sponsor HG Capital, and will also manage it upon completion. To fund both the purchase and the repurposing of the building, Aaron Beck of NorthMarq Capital arranged a five-year $9.96 million first mortgage loan for Monarch. The financing featured interest-only payments, a floating rate and minimal recourse so as to give the joint venture... Read More »Schedule a demo
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