Cascade’s building blocks
New entrant Cascade Capital Group recently acquired three skilled nursing facilities in Colorado and Utah, as reported in the February issue of The SeniorCare Investor, and turned to Oxford Finance to fund it. Formed in January 2016 by the leadership team that built Illinois-based Legacy Healthcare, Cascade is a private equity firm that invests in long-term care facilities, with Legacy managing. The three acquired facilities were relatively new, being built between 1999 and 2013, but operated at a 12% margin and were just 58% occupied overall. Cascade paid approximately $31.8 million in total for the two Utah facilities and the one Colorado facility, or about $70,000 per bed. Ryan Saul and... Read More »RED hot HUD deal
ORIX USA Corporation just increased its ownership interest in RED Capital Group, the multifamily/affordable/seniors housing lender, from 88% to 100%. ORIX made its original investment in 2010, but RED has continued to operate as an independent entity based in Columbus, Ohio. And with that, RED Mortgage Capital, the mortgage banking arm of RED, closed a $21.2 million HUD loan with a 30-year term to refinance a 220-bed skilled nursing facility in Butler, Pennsylvania. Previously owned by Butler County, this facility was built in 1963, with an addition in 1982 and a $7 million renovation in 2009. Under county-ownership, operations suffered with a high Medicaid census, and despite being 96%... Read More »No rest for the weary
Capital Funding Group recently announced the closing of four transactions for three different skilled nursing facilities across the country. First up, Capital Funding provided an undisclosed amount of subordinated debt to finance the acquisition of a 175-bed SNF in Modesto, California. A group of private real estate investors was the buyer, which brought on an affiliate of Windsor Healthcare to operate. Next up, in a deal that may sound familiar to our readers, CFG financed Vita Healthcare Group’s acquisition of a 140-bed skilled nursing facility in Hatboro, Pennsylvania. There were three parts to the transaction. Capital Funding arranged a $13.36 bridge-to-HUD loan funded through a... Read More »
HFF at it again
After topping our 2015 broker list in terms of dollar volume, with $1.45 billion in transactions closed that year, HFF is off to a strong start in 2016. On the financing side, the company, led by James Fowler, Ryan Maconachy and Chad Lavender, recently arranged $95.5 million in joint venture equity and construction financing for the development of a 201-bed luxury seniors housing community in Orange County, California. The transaction was made on behalf of the developer, Steadfast Companies, to arrange $27.9 million in JV equity capital with Fremont Realty Capital. Plus, HFF secured a $67.6 million construction loan for the JV through a local bank. The community is set to feature 61... Read More »
Freddie and the Queen
HFF recently announced the closing of a sale that we reported on in the January issue of The SeniorCare Investor (but didn’t have full details). The acquired 93-unit assisted living/memory care community is located in the Upper Queen Anne neighborhood in Seattle, Washington, and sold for $36.25 million, or $390,200 per unit, to Washington D.C.-based Capitol Seniors Housing. The community was originally built in 1908 and 1927, but was purchased by the seller in 2007 for $17.2 million, and underwent an extensive $6 million renovation that also included converting two floors from assisted living to memory care. Milestone Retirement Communities managed the property, which was 96% occupied. In... Read More »Schedule a demo
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