Omega Healthcare Investors Receives Large Term Loan
Omega Healthcare Investors received a new two-year, $400 million senior unsecured term loan to help replenish the $350 million of the company’s cash used to repay its August 1 bond maturity. Maturing on August 8, 2025, with two one-year extension options, the loan includes an accordion feature that permits Omega to expand its borrowing capacity to an aggregate of up to $500 million. In addition to the balance sheet cash provided by the term loan, the REIT still maintains its entire $1.45 billion revolving credit facility and over $700 million remaining under its ATM equity shelf program available to fund future investments and repay debt maturities, including $400 million in debt due in... Read More »
Greystone Goes Green with Latest HUD Financing
Utilizing HUD’s new green seniors housing program that can cut closing costs by 75 basis points and reduce the borrower’s interest rate by almost 50 basis points. Greystone provided a $16.8 million loan to refinance a 102-unit supportive living facility in Rolling Meadows, Illinois. The financing was originated by Adam Lipkin and Michael Zukerman of Greystone, with Brent Connell of Geneva Capital acting as correspondent on the transaction. Plum Creek at Rolling Meadows is a three-story facility on 1.46 acres, which was constructed in 1986 as a hotel and converted to supportive living in 2006. The supportive living program in Illinois is an alternative to skilled nursing care for low-income... Read More »
New Active Adult Community in The Works
America Walks, an Ohio-based multifamily development firm, is developing Encore at Tradition, an active adult community located in Tradition (a master-planned community within Port St. Lucie), Florida. This is being done with the help of a $95 million mortgage loan originated from Madison Realty Capital, a real estate private equity firm managing $11 billion in assets. Encore at Tradition will be comprised of 303 single-story, ranch-style villa units across 60 buildings and two multifamily buildings, connected by a 24,000-square foot clubhouse and amenity deck. Resort-style amenities will be offered, including a salon, sauna, walking/biking trails, golf simulator, sport courts and a... Read More »
60 Seconds with Swett: The Medicare Advantage Tipping Point
We attended the Zimmet Conference dubbed “Roaring Reimbursement” last week at Mohegan Sun in Connecticut, and as always, the program was highly informative on the skilled nursing reimbursement and regulatory environment. The tidbit that really stuck in our minds, which was probably the intention of Marc Zimmet in his opening remarks, was that we had reached a tipping point of Medicare Advantage enrollment overtaking traditional fee-for-service Medicare enrollment, surpassing 50% as a percentage of total beneficiaries. Not only that, but despite the total number of beneficiaries increasing, the absolute number of traditional Medicare beneficiaries is declining. This will lead to fewer SNF... Read More »
Progress For Sonida Senior Living
Just like for almost everyone else, Sonida Senior Living had some good news to report for the second quarter as well as some areas that did not improve as much as maybe expected. But progress is being made to achieve stabilized occupancy, cash flow and operating margins. Even though weighted average occupancy increased by 120 basis points from the year-ago quarter to 83.9%, it declined by 10 basis points from the first quarter this year. For the sector, the second quarter has rarely been a good one for census, but other companies have been reporting increases for both the first and second quarters. The 8% rate increases have caused some move outs for financial reasons, but the increases... Read More »
Behavioral Healthcare Provider Purchases AL/MC Community
Benefitting from its seniors housing and behavioral health platforms, Blueprint Healthcare Real Estate Advisors represented an institutional seniors housing client in its first adaptive re-use disposition. Andrew Sfreddo, Shane Harmon, Gunnar Raney, Amy Sitzman and Giancarlo Riso handled the transaction, selling the seniors housing asset to a behavioral healthcare provider. Developed in 1996, the assisted living/memory care community is located in Northern Indiana, near downtown Fort Wayne. It features large amenity spaces, private bathrooms and outdoor programming areas. Given the seniors housing competition and marginal financial performance, Blueprint strategically structured a tiered... Read More »
Refinancing Closed for American House St. Petersburg
First Citizens Bank’s Healthcare Finance team provided a loan to refinance American House St. Petersburg, a seniors housing community located in St. Petersburg, Florida. This 165-unit community is comprised of 66 independent living, 66 assisted living and 33 memory care units. Previously, Prevarian Senior Living bought a parcel near Tyrone Square Mall for $5.18 million. American House St. Petersburg was then later developed by Prevarian, Harrison Street and American House, one of the country’s largest owner/operators of senior living communities. The community is American House’s ninth senior living community in Florida and first in the Tampa Bay area. The community opened in 2021,... Read More »
New Class-A Seniors Housing Community Opens
Magnolia Bridge at Murrells Inlet, developed by Bourne Financial Group and operated by SRI Management, celebrated its grand opening in July after receiving its license to operate in June. Bourne is a real estate investment company specializing in seniors housing development, acquisitions, and asset management. SRI has independent living, assisted living and memory care communities throughout the Southeast. Magnolia Bridge is a Class-A community located in Murrells Inlet near Myrtle Beach, South Carolina, with 170 units of independent living, assisted living and memory care. The community stands four stories tall and is in close proximity to local boutiques. It has amenities such as... Read More »
Sabra Health Care REIT Stays in Good Shape
All we can say is that Sabra Health Care REIT is fortunate to have gotten out of its joint venture with TPG and the former Enlivant portfolio. TPG bought those assets at a very low per-unit price, and Sabra bought its 49% interest from them at a very high per-unit price, more than double TPG’s price. While we understood the need to diversify Sabra’s portfolio into more private pay seniors housing, these were not the right assets. But they were available at the time, and if it worked out Sabra had an option for the remaining 51%. Even without the pandemic, we do not believe the value would have climbed to merit buying the other 51%. The buildings were small, on the old side and were... Read More »
Chartwell Retirement Residences Sees Census Gains
Chartwell Retirement Residences, the largest operator of seniors housing in Canada, serving more than 25,000 residents in four provinces, posted a net loss in the second quarter, but same-community occupancy increased by 180 basis points year over year to 79.2%. The operating margin at the facility level increased by 120 basis points year over year to 32.7%. The loss in the quarter was mostly due to higher finance costs, higher G&A expense and negative changes in fair values of financial instruments, so not the operations. It is interesting that of the large REITs with major operations in Canada, Ventas has the best occupancy rate at 94.3% in the second quarter, up 90 basis points year... Read More »Schedule a demo
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