CFG Handles Another HUD Refinance
Capital Funding Group closed a $7.2 million HUD loan to refinance a 162-bed skilled nursing facility in Kentucky. CFG had executed the original bridge loan, which allowed the nationally recognized borrower to acquire the facility’s real estate. Since that acquisition, the facility has stabilized and the time came for a permanent HUD takeout. The refinancing closed on November 8, 2023. Capital Funding Group Director of Long-Term Care Patrick McGovern originated the transaction for the company. The financing followed CFG’s recent closing of a $10.9 million HUD loan which supported the refinancing of a 112-bed skilled nursing facility in Arizona. Read More »
United Church Homes Acquires Port Clinton Community
In scenic Port Clinton, Ohio, a senior care campus sold to a not-for-profit organization as part of the seller’s strategic move to redeploy capital and resources to other assets across the state. Set on 57 acres, Vineyard on Catawba was owned and operated by Ohio Living, one of the country’s largest not-for-profit providers with 11 CCRCs in the state. The community was built in stages to now include a 40-unit low-income apartment complex, 12 assisted living units and 10 independent living condos. It was nearly fully occupied. United Church Homes bought the community, taking over operations effective November 1. It is renaming the asset The Parkvue Community on Catawba Island, similar to... Read More »
From AL/MC to Behavioral Health
Blueprint’s Behavioral Healthcare and Seniors Housing teams were brought on by a regional seniors housing owner looking to lease its vacant assisted living/memory care community in Tennessee. Because the community was empty, Blueprint could effectively market the asset as both seniors housing and behavioral healthcare conversion candidates. Blueprint recommended the owner deploy a behavioral healthcare marketing strategy given strong demand within Brentwood. Lease rate, term, credit and certainty of execution were all considered for the incoming tenant. The owner received three strong offers before selecting a regional behavioral healthcare provider. The owner and incoming tenant... Read More »
Chicago Investor Buys Three Indiana Communities
Three late-1990s-era assisted living communities sold in Indiana with the help of Connor Doherty, Ryan Kelly, Amy Sitzman and Giancarlo Riso of Blueprint. Located in Elkhart, Kokomo and Madison, the communities historically struggled operationally and were on the smaller side, with approximately 40 units at each property. Based on their size and locations, these appear to be Enlivant-owned and operated communities. Blueprint approached qualified buyers in the region and generated multiple competitive offers for the portfolio. The selected buyer, a private investor based in Chicago, plans to reposition the assets by utilizing the Indiana Assisted Living Waiver Program, which recently... Read More »
Massive Menorah Park Selling in Cleveland
A massive, not-for-profit senior care campus in Beachwood, Ohio (Cleveland MSA), is set to sell to a New Jersey-based group before the end of the year. Menorah Park, which was founded in 1906 and moved to its current location in 1968, had been struggling operationally in the wake of the pandemic, higher staffing costs, changes in government funding and the competitive environment. That prompted the board to review its strategic options and a potential sale, and Connor Doherty, Ryan Kelly, Michael Segal and Ben Firestone of Blueprint were brought in to run the process. The 355-bed Menorah Park Nursing Home was built in stages between 1968 and 2015, which was followed by a 193-unit... Read More »
Walker & Dunlop Handles Three Deals
A large seniors housing community in Schererville, Indiana (Chicagoland), saw seven bidders on the asset before a joint venture paying all cash emerged as the buyer. Walker & Dunlop Investment Sales ran a competitive process, with multiple bidding rounds, on behalf of the sellers: Harrison Street, Ryan Companies and Life Care Services (LCS). Ryan Companies and LCS developed the community in 2015 at a cost of $40 million, or $226,000 per unit. It features 177 units and 180 beds of independent living, assisted living and memory care. The stabilized asset’s occupancy was above 90% and had a strong profit margin. The buyer was a joint venture between an undisclosed capital source and... Read More »
BWE Secures Three RAD for PRAC Loans
BWE secured $15.25 million in permanent loans to finance two affordable seniors housing communities and one affordable multifamily community. Jon Killough and Tony Love of BWE originated the loans for Sweetwater Point, La Vista de Lopez and AHEPA 310. Killough and Love used HUD’s RAD for PRAC initiative, a new tool designed to preserve existing Section 202 housing as well as create new Section 8 housing across the country. Traditionally, Section 202 PRAC rental assistance could only be used for operating expenses, not debt servicing. The RAD for PRAC process allows borrowers to convert PRAC subsidies to project-based Section 8 contracts, which boosts the rental subsidy to a level... Read More »
60 Seconds with Monroe: Are We Getting Too Big Again?
One of the consequences of the pandemic, one of many, is that the differentiation between the best operators and the not so good has been increasingly exposed. And of course, investors will seek out the best to manage their properties. But as this happens, the operators who are doing a good or even great job today will start to be spread too thin. Managing 20 communities is a lot different than 50, 100 or more. You can have the procedures and policies in place for 100 properties, but you do start to lose that personal touch, especially if the CEO is very hands on. With REITs and other investors doubling down on either their best operators, or finding others that they perceive to be top... Read More »
Are Cap Rates Set To Rise in 2024?
In a recent survey conducted by Cushman & Wakefield, 68% of respondents anticipate a sustained increase in capitalization rates over the next year, expressing concern over debt market liquidity, which is the primary worry for 51% of participants. The majority of respondents, 49%, are pursuing core-plus investment strategies, while 34% focus on opportunistic or distressed investments, expecting around $18 billion in sector-specific loan maturities within the next 24 months. Notably, 33% of participants are targeting need-driven segments, particularly assisted living. There’s a notable compression in basis point spreads between the going-in capitalization rate and terminal capitalization... Read More »
Sonida Senior Living Still Making Progress
As Col. Hannibal Smith of the A-Team was fond of saying, “I love it when a plan comes together.” For Sonida Senior Living, it has been a long struggle, and while it may be taking longer than management wanted, the plan is slowly coming together. Everything is moving in the right direction, with occupancy up 150 basis points year over year to 84.9% in the third quarter, higher than industry averages, resident revenue increased 12.6% year over year, adjusted EBITDA more than doubled in the third quarter compared with the year-ago quarter, and RevPOR increased by 11.7% year over year. October’s census increased by 40 basis points from September to over 86%. The third quarter also saw... Read More »Schedule a demo
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