Blueprint for 2016
Making a splash so far in 2016, Blueprint Healthcare Real Estate Advisors recently announced five end-of-year closings, including two leases. First (and the largest) was the sale of a 206-unit independent/assisted living community in O’Fallon, Missouri to CNL Healthcare Properties for $54 million, or $262,100 per unit. Originally built 10 years ago with 116 IL units and 40 AL units, the seller, a joint venture between AEW and First Capitol Group, after purchasing the community in 2011 for $26 million, invested nearly $10 million to add a new 50-unit AL building and to convert 22 AL units to 24 memory care units. The MC units were fully leased by closing, but the community historically has... Read More »
Seattle sale
Capitol Seniors Housing’s second investment in the Seattle MSA was financed with the help of Aron Will of CBRE National Senior Housing, who arranged a $20.12 million non-recourse, floating rate loan with a five-year term and 36-months of interest-only, provided by a national bank. The acquired community is located in the town of Mukilteo, Washington and features 107 units of about half independent and half assisted living. It was built in phases in 2000 and 2004, and occupancy has been between 86% and 90% in 2015. On a trailing-12 month basis, the community generated about $2 million of EBITDA on approximately $4.8 million of revenues, for an operating margin of 42%. Capitol Seniors... Read More »
Reading the Holiday tea leaves
As most of you have read recently, Walker & Dunlop closed its largest loan ever (almost double the size of its $670 million financing that the company closed earlier in 2015) in the form of a $1.27 billion seven-year adjustable-rate Freddie Mac loan secured by 78 Holiday Retirement independent living properties. The financing, led by Russell Dey and Laura Beaton of W&D, comes out to approximately $144,400 per unit, which if you assume a 75% loan-to-value, is almost identical ($192,500 per unit) to the average price per unit Holiday properties have sold for in the last few years ($193,800 per unit, according to our records). Since 2013 Holiday has sold, in nine transactions, 231... Read More »HUD’s record SNF deal
HUD saw its largest single-asset, skilled nursing facility loan ever, when Housing & Healthcare Finance (HHC Finance) closed an $80.7 million 232/223(f) loan to refinance the existing conventional bank debt at a 520-bed skilled nursing facility in Manhattan, New York. Built in 1927 with 16 floors, but converted to skilled nursing in 1985, the Upper West Side facility was purchased three years ago by a member of the CareRite Centers network of communities for $80 million, or $153,800 per bed, with a 13% cap rate. With a loan of such size, HHC Finance had to get approval from multiple levels at HUD including the Office of Risk Management and all the way up to The Deputy Secretary of HUD.... Read More »Will power
A pair of well-located, well-occupied and relatively new assisted living/memory care communities in Suffolk County, New York recently received $62.8 million in financing arranged by Aron Will of CBRE National Senior Housing. The loan, which featured a five-year fixed rate and 60 months of interest only, was placed through a life insurance company and came out to approximately $230,800 per unit. Both communities, owned by a joint venture between Harrison Street Real Estate Capital and The Engel Burman Group, had occupancy rates in the high 90s and are located in affluent towns in the New York City metro area. The 118-unit AL community in Huntington was developed by Engel Burman in 2010,... Read More »Schedule a demo
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