Cushman & Wakefield Finances South Carolina Community
Two years after financing a senior living project in Rock Hill, South Carolina (Charlotte MSA), Cushman & Wakefield returned to refinance the newly opened community. Operated by Harbor Retirement Associates, the community comprises 88 units and 92 beds of assisted living and memory care within the Riverwalk master planned development, which will encompass more than 1,000 single-family homes and 550 apartments, as well as extensive retail and an award-winning restaurant. Private equity firm BridgeForth Capital, the owner, only had the community open for a month before the pandemic hit, but lease-up was luckily strong beforehand. In October 2018, Richard Swartz, Aaron Rosenzweig and... Read More »
Monticello Secures Working Capital For Southeast SNF Portfolio
Just a week after arranging first lien debt for a portfolio of three skilled nursing facilities in Kentucky and North Carolina, MONTICELLOAM, LLC and its affiliates (Monticello) went back and secured a working capital loan to the portfolio’s operating companies. Averaging nearly 50 years in age, the portfolio totals 312 beds. Two of the facilities were refinanced with the debt, while a 114-bed facility in Kentucky was acquired. Given the age, we image some of that working capital will be put to use modernizing and refurbishing the physical plants. The first lien debt totaled $30 million, with a 36-month term, while the working capital loan totaled $2.50 million. They were arranged on... Read More »
Carnegie Capital Finances Oregon Assisted Living Acquisition
A portfolio of four assisted living communities in rural Oregon found a new owner with the help of debt arranged by JD Stettin of Carnegie Capital, the seventh transaction closed by Mr. Stettin during the pandemic. Totaling 136 units, the portfolio is being converted to include memory care, and will feature a mix of 60 AL and 85 MC units across the four communities. Occupancy could be improved, but the current residents will not be displaced as a result of the project. The portfolio was owned by a large national senior care provider with facilities in over 25 states. But that turnaround opportunity attracted a new owner, a private fund based in Oregon and Arizona that is highly motivated... Read More »
Diversified Healthcare Trust Raises Expensive Debt, Ventas Makes Cuts
Diversified Healthcare Trust Raises Debt Diversified Healthcare Trust tapped the debt markets with a $1.0 billion, five-year senior note offering with a yield of 9.75%. That puts the spread over the 5-year Treasury at about 940 basis points. That has to be the widest spread by a healthcare REIT we have seen in years, if not a decade or two. Proceeds will be used to repay a $250 million term loan expiring in June, as well as to pay down certain amounts outstanding under its unsecured revolving credit facility. While the REIT certainly has some credit risk, and it did cut its dividend to just $0.01 per quarter to save $33.3 million each quarter, this still seems to be very expensive... Read More »
Carnegie Capital Announces Latest Closings
JD Stettin of Carnegie Capital has certainly had his hands full recently, having closed a couple of refinances in the Pacific Northwest, no easy task in the early days of COVID-19, we’re sure. Mr. Stettin first sourced and structured a cash-out refinance of a 60-unit memory care community near Eugene, Oregon. Featuring a roughly 50-50 mix of Medicaid and private pay residents, the community was between 15 and 20 years old and was owned by a regional operator. Structured at a 75% loan-to-value (putting the community’s value at just under $9.9 million, or $165,000 per unit), the loan came with a 5.55% interest rate for a three-year term. A national bank held the senior note, while a... Read More »Schedule a demo
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