A Mom & Pop Divest Two SNFs
Jeffrey Vegh and Joe Schiff of Forest Healthcare Properties, a boutique off-market brokerage firm, were brought on by a mom & pop to sell two, five-star skilled nursing facilities located in Danbury, Connecticut. Built in 1947 and rebuilt in 1994, Filosa Nursing Home and Rehabilitation Center comprises 64 beds. Hancock Hall was built in 1984 with an additional wing added in 2001 and it encompasses 96 beds with 22 private rooms. Both facilities were 95% occupied with strong EBITDAR at the time of marketing. The seller owned and operated the facilities for over 30 years, ultimately choosing to divest and exit the sector, as these were their only SNFs. Meanwhile, the new owner has... Read More »
Helios Arranges Bridge Loan
A Texas-based seniors housing operator initiated the first phase of a portfolio recapitalization with a bridge loan closed by Helios Healthcare Advisors. The borrower owns 12 assets, but this transaction refinanced two assisted living/memory care communities in the San Antonio area. They consist of 80 beds in 76 units. With the existing debt maturing and one location working towards stabilization, Helios ran a competitive process that led to multiple term sheets and ended with structuring an 18-month, interest-only bridge loan with limited recourse. Coupling the two assets allowed the borrower to shift leverage from an over-levered asset that needed more time to reach stabilization, to one... Read More »
Newly Launched G Capital Markets Closes First Deal
Grant Goodman, a former Senior Managing Director at White Oak Healthcare Finance, launched his own advisory/debt placement firm this summer, called G Capital Markets. He also recently closed his first transaction with the firm, arranging a $9.6 million HUD loan for Trellis Chino, a skilled nursing facility in Chino, California. Built in 2018, the facility operates 59 private rooms and exclusively cares for short-term rehab patients. After leasing up during COVID, the building has performed very strongly with near 100% occupancy. At the time of the deal, it also had a 85% Medicare and 15% private pay census. The sponsor, Encore Capital Ventures, is a real estate investment and capital... Read More »
60 Seconds with Swett: Criticism Mounts for Minimum Staffing Mandate
It has been nearly two weeks since CMS released its proposed rule on Minimum Staffing Standards for SNFs, and the chorus of opposition to it continues from SNF stakeholders and also politicians. The Chairman of the House Ways & Means Committee, Republican Congressman Jason Smith, said “this one-size-fits-all deal would ripple through local communities, siphoning staff away from other facilities in desperate need of personnel such as hospitals and hospice facilities, worsening already chronic staff shortages.” Across the aisle, Democrat Senator Jon Tester also commented that “This is just the latest example of Washington bureaucrats displaying how little they understand about the... Read More »
Ventas: Time For A Change?
Ventas has been an incredible success story, both in terms of the company itself and its stock. But most of the “incredible” for the stock occurred many years ago. Ten years ago, its share price was about $70, and currently it is about $40. It has averaged close to $65 a share for much of the past 10 years. But if you bought it in March of 2020, when the senior care world was under attack, at its low of $13.35 per share, you would be considered a genius and would have pocketed a hefty return. But that would have taken brass ones. CEO Debbie Cafaro was recruited (against her better judgment at the time) nearly 25 years ago when the REIT’s only tenant, Vencor (later renamed Kindred... Read More »
Brookdale’s Occupancy Gets August Bump
Brookdale Senior Living just announced its August occupancy levels, and it has been a good summer so far. But the third quarter has always been the best quarter of the year for census increases for the entire sector, so we expected some good news. If not, that would have spelled trouble. Weighted average occupancy in August increased sequentially by 50 basis points to 77.6%, while census at the end of August increased sequentially by a larger 80 basis points to 79.3%. This is the first time that month-end occupancy has topped 79% since the recovery began. A year ago, weighted average occupancy was 76.4%, so Brookdale has not seen a big jump since then, just 120 basis points. It has... Read More »
Blueprint Sells in the Old Dominion
A public REIT selected Blueprint Healthcare Real Estate Advisors to sell The Laurels of Willow Creek, a 120-bed skilled nursing and rehabilitation facility located in the Richmond, Virginia, suburb of Midlothian. Michael Segal and Ben Firestone handled the deal. Built in 1991, with an addition completed in 2018, the facility features 36 private and 42 semi-private units. It had been well maintained and demonstrated consistent performance with stable census and cash flow. Virginia’s Medicaid rate enhancement made the facility even more attractive to buyers, and another REIT ultimately bought the asset. Blueprint successfully closed the transaction in approximately 60... Read More »
Phorcys Capital Partners Grows Georgia Holdings
Ziegler served as exclusive financial advisor to raise $20.5 million in financing on behalf of Phorcys Capital Partners to acquire The Glen at Lake Oconee Village, a senior housing community in Greensboro, Georgia. PCP was previously the supermajority creditor on the municipal bonds issued to finance the construction of the project. The company purchased the community for $26.45 million, or $232,000 per unit. The community was built in 2017 with 28 independent living, 68 assisted living and 18 memory care units. It is situated on Lake Oconee, between Atlanta and Augusta, Georgia. The facility will continue to be operated by SRI Management. The community was in receivership, but... Read More »
Grandbridge Secures Large Agency Refinance
Grandbridge Real Estate Capital’s Seniors Housing and Diversified Healthcare Finance Group arranged $426.8 million in agency financing for a large seniors housing portfolio owned by a publicly traded, healthcare REIT. In its latest earnings report, Ventas also disclosed that it entered into a $427 million 10-year mortgage loan, which (after Ventas completes its contemplated purchase of a 7.5% tranche of the original principal balance of the loan) will result in a $395 million net mortgage loan at an all-in expected weighted average cash rate of 5.5%. The portfolio was secured by 19 seniors housing properties located across 10 states and was financed by an agency lender. The... Read More »
Evergreen Healthcare Group Acquires EmpRes Healthcare
In one of the largest transactions of the year, Tony Cassie, Gideon Orion, and Mark Myers of Walker & Dunlop facilitated the sale of 46 senior care facilities across six Western states for EmpRes Healthcare. The company recently announced on its website that Evergreen Healthcare Group acquired its entire skilled nursing and senior living business line, including the rights to use the name “EmpRes”. The 4,100-bed portfolio spanned across Oregon, Washington, Nevada, Montana, Wyoming, and South Dakota with four seniors housing properties, and the remainder skilled nursing facilities. The complex deal structure took an investment banking form involving the sale of the business line, its... Read More »Schedule a demo
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