Non-Performing Loan up for Grabs
A non-performing mezzanine loan on a newly built seniors housing community in Upper Marlboro, Maryland, is up for auction, with Newmark leading the process. The associated property was built in 2021 with 282 units of independent living, assisted living, memory care and active adult. The three separate buildings are interconnected via a skybridge with large glass windows. Common area space totals 134,642 square feet across the community. The fixed-rate construction loan was originated in December 2019 in the amount of $22.5 million to fund the project. It carried an interest rate of 12% (6% current and 6% Paid-in-Kind). The loan was later modified in October 2020 to increase its... Read More »
Monarch Sources SNF Acquisition Debt
Mission Health Communities, a private multi-state operator of senior care facilities, recently engaged Alec Blanc of Monarch Advisors to source acquisition debt for the purchase of a 78-bed skilled nursing facility in Topeka, Kansas. The behavioral-focused facility was already operated by Mission Health, making for a seamless transition. Occupancy hovered between the high-80s and low-90s, and the facility was profitable, benefiting from a significant rate increase in Kansas effective July 1, 2023. Mission Health had taken over operations after the facility entered into receivership. Mission Health obtained a $2.1 million senior loan from a local bank to fund the deal. Monarch structured... Read More »
CIBC Helps with Portopiccolo Refinance
The Portopiccolo Group secured a refinance on 15 of its skilled nursing facilities from a diverse group of lenders, including CIBC Bank USA, which, along with other co-lenders, provided a $220 million senior secured credit facility. Located in Virginia, the facilities total 1,675 skilled nursing beds and 34 assisted living units. They have been operated by a third-party tenant for several years and boasted strong historical operations. Occupancy has been approximately 85%, with an EBITDAR margin around 25%. That is strong. In addition to the senior debt, CIBC provided a $13.0 million revolving line of credit to support the ongoing operations of the third-party tenant. The financing... Read More »
BWE Secures Financing For Class A Seniors Housing Community
BWE secured $46.0 million in permanent financing for a Class-A seniors housing community in Cypress, California. Built in 2022, Westmont of Cypress comprises 129 independent living, assisted living and memory care units. That results in about $356,500 per unit of debt. It experienced good lease-up, with occupancy above 95%. Ryan Stoll and Taylor Mokris originated the non-recourse loan on behalf of the borrower from a life insurance company, establishing a new lending relationship between the two in the process. The loan came with a competitive fixed rate and flexible prepayment. Read More »
Owner/Operator Chooses Refinance over Sale
We have written numerous times of property owners not being tempted into the M&A market lately, due to values being below their expectations for their properties. One of those owners, a local operator in Michigan, decided to refinance its 150-unit independent living community after sale offers came in lower than they desired. Built by the same operator 15 years ago about 15 miles outside of Ann Arbor, the three-story community had experienced a census drop of over 20% since the start of the pandemic. That probably did not help its sale prospects. So, JD Stettin of Carnegie Capital arranged a refinance totaling $9 million from a syndicate of local credit unions. The loan came with a... Read More »Schedule a demo
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