Developer investing in Kansas City area
Four years ago, Hunt Midwest, a real estate developer with a focus on industrial, commercial, retail, mission critical, multifamily, residential and senior living, invested $32 million to build four assisted living/memory care communities in the Kansas City metro area, all to be managed by Principal Senior Living Group under the “Benton House” brand. The final community of that investment just opened in Tiffany Springs, Missouri, but Hunt Midwest isn’t stopping there. The developer has already broken ground on two communities in Raymore and Blue Springs that will open later this year. Plus, there are two more set to break ground in Lenexa and Kansas City, which will bring the total for... Read More »Growing slow and steady
Big Rock Partners (BRP) certainly does its research when scouting for sites to develop seniors housing. We wrote a few months ago that BRP was building a $70 million, 225-unit senior living community in Celebration, Florida, a planned community developed by the Walt Disney Company in the 1990s. Intended as a family community, Disney had never zoned land for seniors housing (and there is none around for 15 miles), so as residents in Celebration are aging, an unmet need grew. Plus, Richard Ackerman, founder of BRP, secured an exclusive right to build seniors housing for eight years, including an option to build on an adjacent 20 acres. BRP plans to soon break ground on that project and open... Read More »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 »Schedule a demo
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