Seniors Housing Asset Divested for Behavioral Health Conversion
Blueprint’s Behavioral Healthcare team advised an owner in the sale of an existing seniors housing/memory care community in Indianapolis, Indiana, to be converted to an inpatient residential substance use disorder clinic. The asset was underwritten as both seniors housing and a behavioral healthcare conversion candidate. Blueprint deployed a behavioral healthcare marketing campaign given the undersupply and strong demand from behavioral providers to operate within the state. There was strong initial interest within the first few weeks of marketing and the buyer ultimately selected has an existing footprint within the state. The buyer also intends to deploy significant capital improvement... Read More »
Non-Performing Loan up for Grabs
A non-performing mezzanine loan on a newly built seniors housing community in Upper Marlboro, Maryland, is up for auction, with Newmark leading the process. The associated property was built in 2021 with 282 units of independent living, assisted living, memory care and active adult. The three separate buildings are interconnected via a skybridge with large glass windows. Common area space totals 134,642 square feet across the community. The fixed-rate construction loan was originated in December 2019 in the amount of $22.5 million to fund the project. It carried an interest rate of 12% (6% current and 6% Paid-in-Kind). The loan was later modified in October 2020 to increase its... Read More »
SNF Portfolio Trades in California
A portfolio of six skilled nursing facilities in California was finally sold in multiple phases, with the two last facilities closing after the completion of HUD debt assumption and state regulatory approvals. The facilities sold for $154 million in total, and while the combined beds were not disclosed, pricing was reportedly strong on a per-bed basis and possibly a record for any portfolio SNF deal in the state, again on a per-bed basis. Gideon Orion of Walker & Dunlop facilitated the sale, his third over $150 million closed in the last 12 months. Located in Southern California, the facilities were on the older side (typical of the state), having been built from the 1960s to the... Read More »
Monarch Sources SNF Acquisition Debt
Mission Health Communities, a private multi-state operator of senior care facilities, recently engaged Alec Blanc of Monarch Advisors to source acquisition debt for the purchase of a 78-bed skilled nursing facility in Topeka, Kansas. The behavioral-focused facility was already operated by Mission Health, making for a seamless transition. Occupancy hovered between the high-80s and low-90s, and the facility was profitable, benefiting from a significant rate increase in Kansas effective July 1, 2023. Mission Health had taken over operations after the facility entered into receivership. Mission Health obtained a $2.1 million senior loan from a local bank to fund the deal. Monarch structured... Read More »
Marcus & Millichap Closes Two SNF Deals
The Knapp-Stahler Group at Marcus & Millichap closed a couple of skilled nursing deals on the eve of the eCap conference in Miami, so a celebratory pina colada by the pool sounds appropriate. First, Nick Stahler and Austin Diamond sold an 85+ bed facility in East Texas to a regional owner/operator that was selected for its proven track record and ability to close “all cash” in an expedited time frame. The facility had historically struggled with occupancy (it was in the mid-50% range at the time of closing), and rising expenses due to inflation created further challenges. There was clearly room for improvement in those areas, plus in the payor mix and in additional revenue via... Read More »
Scribner/Cascadia Join in Oregon Purchase
Scribner Capital and its institutional capital partner announced its involvement in the purchase of The Village at Keizer Ridge in Keizer, Oregon. The acquiring joint venture also included Foundry Commercial and its affiliated operating partner, Cascadia Senior Living. The transaction marks Scribner’s fourth transaction with Foundry and second with Cascadia. This also marks the 15th seniors housing equity investment by Scribner to go along with three debt investments. Built in 2016, Keizer Ridge is a 126-unit assisted living/memory care community that faced challenges through COVID. Operations were stabilizing, and the community was nearly 90% occupied at the time of closing, which was... Read More »
CIBC Helps with Portopiccolo Refinance
The Portopiccolo Group secured a refinance on 15 of its skilled nursing facilities from a diverse group of lenders, including CIBC Bank USA, which, along with other co-lenders, provided a $220 million senior secured credit facility. Located in Virginia, the facilities total 1,675 skilled nursing beds and 34 assisted living units. They have been operated by a third-party tenant for several years and boasted strong historical operations. Occupancy has been approximately 85%, with an EBITDAR margin around 25%. That is strong. In addition to the senior debt, CIBC provided a $13.0 million revolving line of credit to support the ongoing operations of the third-party tenant. The financing... Read More »
Struggling Ohio CCRC Changes Hands
In a swift transaction, Blueprint’s Connor Doherty, Ryan Kelly and Dan Mahoney closed the sale of a CCRC in Richmond Heights, Ohio (Cleveland area), just 55 days from offer acceptance to closing. That fast track, helped by the buyer paying all cash, got the deal completed before year-end, enabling the new owner to benefit from Ohio’s improved reimbursement environment. The property, Richmond Heights Place, may need that, as it was losing money at the time of the sale. Nearly 25 years old, the 138-unit community was previously owned by a West Coast-based owner/operator that was making a strategic exit. A well capitalized private owner/operator looking to expand and increase its scale in the... Read More »
BWE Secures Financing For Class A Seniors Housing Community
BWE secured $46.0 million in permanent financing for a Class-A seniors housing community in Cypress, California. Built in 2022, Westmont of Cypress comprises 129 independent living, assisted living and memory care units. That results in about $356,500 per unit of debt. It experienced good lease-up, with occupancy above 95%. Ryan Stoll and Taylor Mokris originated the non-recourse loan on behalf of the borrower from a life insurance company, establishing a new lending relationship between the two in the process. The loan came with a competitive fixed rate and flexible prepayment. Read More »
Omega Healthcare Reports, American Healthcare Prices IPO
There had been some nasty rumors in the market leading up to the release of Omega Healthcare Investors’ fourth quarter and year-end earnings release. Some people fretted that the situation had deteriorated with too many of their customers, which could force them to cut their dividend rate. You can’t believe everything you read, except on these pages. While there are still some tenant issues, the overall situation is improving. Because they are leases, the information comes with a three-month lag. For the 12 months ended September 30, 2023, occupancy was 79.1%, up from the previous quarter and up 290 basis points from the year-ago quarter. EBITDARM coverage was 1.63x in the third quarter,... Read More »Schedule a demo
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