Two HUD Loans and a Bridge Financing from Berkadia
A couple of five-star skilled nursing facilities in western states refinanced through HUD with the help of Berkadia Seniors Housing & Healthcare. First, Jay Healy closed an $8.3 million loan to refinance an existing Berkadia/Live Oak Bank bridge loan secured by a 60-bed SNF in Idaho. The 80% LTV, 35-year loan retired the bridge debt used by the Idaho-based owner/operator to acquire the real estate in February 2023. Built in 2017, the facility had occupancy above 90% at the time of closing, with a Medicare census surpassing 20%. In a similar deal, Berkadia closed a $16.7 million loan to refinance another existing Berkadia/Live Oak Bank loan on a 38-bed SNF in Nevada. Its Utah-based... Read More »
HTG Sells SNF in Texas
Mark Davis of Healthcare Transactions Group handled the sale of a skilled nursing facility in Abilene, Texas. Built in 1962, the facility has 96 beds and 23,500 square feet in one story. It maintained a three-star rating with CMS, and the facility participates in Texas’s QIPP Program with Childress County Hospital, but no other operational details were disclosed. The buyer ended up being an existing owner/operator with multiple locations in Texas. The purchase price remained confidential. Read More »
Two More Not-For-Profit Affiliations Announced
There were a couple of affiliations between not-for-profits made public this month, so far. First, Garden Spot Communities and Frederick Living, both located in southeastern Pennsylvania, announced that they will be affiliating. Legal proceedings have been initiated, with the affiliation expected to be finalized at the start of 2024, subject to government approval. Upon completion of the affiliation, Frederick Living will become a Garden Spot community. Garden Spot was founded in 1990 and includes Garden Spot Village, a CCRC with 626 independent living units, 65 assisted living units, 40 memory care units and 73 skilled nursing beds. Garden Spot also includes Maple Farm, a 46-bed skilled... Read More »
CFG Returns to Refinance California SNF
Capital Funding Group (CFG) closed a $43.39 million HUD loan to refinance an existing bridge loan that had also been executed by CFG. The initial loan, closed in June 2021, allowed the nationally recognized borrower to acquire a 140-bed skilled nursing facility in Bakersfield, California, and then the refinancing allowed the borrower to have a successful take out. Built in 2018, the facility was 95% occupied as of March 2023. Capital Funding Group Director, Long-Term Care Patrick McGovern originated the transaction for the company. The financing follows CFG’s recent closing of a $15.49 million HUD loan, which supported the refinancing of an existing bridge loan, also executed by... Read More »
Dwight Capital Closes Bridge Loan
Dwight Capital closed a $29.5 million bridge loan for a portfolio of five skilled nursing and assisted living properties in Minnesota, Ohio and Wisconsin: Eden Vista of Stow, Evansville Manor, Edenbrook Fond du Lac, Edenbrook of Rochester and Edenbrook of Edina. Together, the facilities consist of 441 beds across 25 acres. The purpose of the loan was to refinance three of the facilities and acquire the other two. Dwight has financed over 20 properties for this repeat client. Managing Director of Healthcare Finance Adam Offman originated this transaction. Read More »
Inspired Healthcare Capital Acquires Class-A Community
A Class-A, well performing seniors housing community traded in North Haven, Connecticut, with the seller capitalizing on an opportunistic disposition to lock in returns and return capital to investors early in the fund’s life. Built in 2019, The Landing of North Haven features more than 100 units of assisted living and memory care on an 11-acre campus. Lease-up was solid through the pandemic, as were rates and margin, highlighting the advantages of Class-A buildings in good locations during the pandemic recovery and ensuing inflation. So, as occupancy approached stabilization, there was meaningful cash flow and a very positive performance trend. A strong and diverse bidder pool that... Read More »
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 »Schedule a demo
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