M&M Negotiates Lease, Purchase Option and Key Money
Nick Stahler and Austin Diamond of the Knapp-Stahler Group at Marcus & Millichap facilitated a lease-with-purchase-option transaction for a dually certified, 120-bed skilled nursing facility in the Dallas-Fort Worth area. The pair was also able to negotiate $500,000 of key money from the incoming operator for the landlord, a rarity in Texas deals. That was possible because at 10 years of age, the facility was performing well and represented decent lease coverage on day one. The SNF was 74% occupied and operated at a strong 12% margin with a 4% management fee. Stahler and Diamond obtained several offers culminating in a full asking lease rate, purchase option that starts in year... Read More »
Cain Brothers Secures Refinancing for New York Asset
Cain Brothers advised FilBen Group on a $30.67 million HUD refinancing for Wallkill Realty Partners (dba Braemar at Wallkill), an assisted living community in New York. The proceeds on the loan will be used to refinance The Orange County Funding Corporation Assisted Living Residence Revenue Bonds, Series 2012, providing a long-term, fixed-rate low cost of capital to the borrower. As a result of the refinancing, the tax-exempt public fixed-rate Series 2012 bonds were redeemed at par. In addition, the refinancing will remove any ongoing financial covenants and public disclosure requirements related to the Series 2012 bonds (for example, debt service coverage ratio and days cash on hand).... Read More »
60 Seconds with Swett: The Current Lending Environment for Senior Care Properties Q&A
The higher cost and scarcity of capital has made getting just about any deal done that much more difficult, from an M&A transaction to a refinancing to a new construction project. We know that we don’t need to tell most of you that. But we also know that right now is a great time to buy, that it may be the time to commence construction, and that those with maturing debt are sometimes faced with a difficult decision: refinance or exit. So, we have convened a panel of financing experts to lay out the lending landscape and provide answers to those seniors housing and care owners on how to get deals done today, from which sources, and at what terms. But also, what financing options make... Read More »
Sonida Senior Living On The Move
It has taken a while, and a lot had to be done to strengthen the balance sheet over the past two years, but Sonida Senior Living is now on a path of growth, and recent announcements have shown it. On May 9, the company closed on its first acquisition of the year with the purchase of a 100-unit assisted living and memory care community in Macedonia, Ohio. Built in 2015, the community has still not recovered from the challenges of the pandemic and changes in operators. The purchase price was $10.7 million, or $107,000 per unit, which seems quite cheap relative to what it would cost to replace, not to mention the original construction cost. They also bought it at a 43% discount to the... Read More »
Maryland SNF Portfolio Secures Refinancing
First Citizens Bank’s Healthcare Finance business served as lead arranger for a $260 million loan to refinance a portfolio of 12 skilled nursing facilities in Maryland that comprise over 1,500 beds. The borrower, a new client, is a Midwest-based healthcare real estate investment and management company. It invests in a variety of post-acute facilities with investments in over 24 states. At $173,000 per bed of debt, the portfolio must be performing quite well. No other details were disclosed. Read More »
REIT Divests Eight Connecticut SNFs
Evans Senior Investments arranged one of the larger deals of the month with the sale of a Connecticut skilled nursing portfolio comprising eight skilled nursing facilities in the Hartford MSA. The transaction, executed on behalf of a West Coast-based REIT, later revealed to be Summit Healthcare REIT, amounted to $60.0 million, or $54,000 per bed, for the real estate only. The existing operator, iCare Health Network, was chosen as the buyer. The facilities include Touchpoints at Manchester (Manchester), Westside Care Center (Manchester), Trinity Hill Care Center (Hartford), Chelsea Place Care Center (Hartford), Silver Springs Care Center (Meriden), Touchpoints at Bloomfield (Bloomfield),... Read More »
Two Standalone Memory Care Communities Trade Hands in Illinois
Senior Living Investment Brokerage facilitated the sale of two standalone memory care communities in Quincy and Centralia, Illinois. The seller was a regional developer/owner/operator while the buyer was an Illinois-based owner/operator with an existing presence in the state. It has experience with the Supportive Living Program and intends to focus on increasing occupancy to be the premiere affordable option in the market. The communities were constructed in 2019 and 2017, respectively, and are in excellent condition. The Quincy community consists of 56 units and is one of less than 20 communities in the state licensed as Supportive Living – Dementia Care Setting. It benefited from a... Read More »
Helios Secures Working Capital for California AL/MC Community
Helios secured working capital for a Southern California assisted living provider. The working capital loan is for The Artesian, a 64-unit assisted living and memory care community in Ojai, California. It was constructed in 2020 and consists of four, 16-unit buildings that utilize a universal worker model. A capital infusion was required to cover operating deficits until the community achieved stabilization and to reconfigure additional units to memory care as the market showed a strong demand for this. An offer from a private debt fund was procured to finance the transaction. The final product was a term loan securitized through a second deed of trust and subject to specific... Read More »
Public REIT Divests 12-Asset Wisconsin Seniors Housing Portfolio
Blueprint was engaged by a public REIT in the divestment of a seniors housing portfolio in Wisconsin. The portfolio, clustered in the Milwaukee and the Green Bay MSAs, consists of 12 communities across nine campuses totaling 279 units of assisted living and memory care. Although underperforming at the time of marketing, the portfolio was historically well-occupied and cash-flowing. In a targeted and off-market process, Blueprint identified Adava Care, an entrepreneurial owner/operator with an existing footprint in the Milwaukee MSA, as the buyer. Adava is eager to grow its portfolio and capitalize on the economies of scale this portfolio offers. Kyle Hallion, Lauren Nagle and Brooks... Read More »
Joint Venture Secures Construction Financing for Seniors Housing Community
CBRE arranged construction financing on behalf of a joint venture between a seniors housing owner/operator and an institutional investor for a seniors housing community in the Washington, D.C. MSA. The community will consist of independent living, assisted living and memory care. Aron Will and Adam Mincberg secured the construction loan through a syndication of two national banks. Read More »Schedule a demo
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