CIBC Finances a Virginia SNF Portfolio
As the sole lender, CIBC Bank USA provided a Virginia owner/operator with a $67.0 million mortgage facility on a portfolio of nursing homes. The portfolio has been operated by the buyer since 2021 and the financing was related to a purchase option. The skilled nursing facilities, which comprise 480 beds, have an effective age of 20 years. Historical occupancy for the facilities has been approximately 85%, and the EBITDAR margin was approximately 15%. A $4.0 million line of credit was also provided. The financing was handled by Matthew Tyler and Neal Netzel of CIBC. Read More »
Brookdale Improves Capital Position
As with several companies still trying to regain their financial footing after the pandemic, investors were worried about Brookdale Senior Living’s looming debt maturities. Worry no more, at least for the next few years. The company recently obtained a $180 million loan under its Master Credit Facility Agreement of 2017. The Fannie Mae financing was done with Jones Lang LaSalle Multifamily, LLC. It bears interest at a fixed rate of 5.97% and matures in 2031. Cash on hand and the proceeds of the new debt were used to repay $260 million of debt due in 2024. In addition, the company amended its revolving credit agreement with Capital One, which provides for an expanded commitment of up... Read More »
Ohio-Based Investment Group Acquires in Louisiana
A seniors housing community was sold in the Louisiana capital. Sunrise at Siegen is an assisted living and memory care community in Baton Rouge. It comprises 100 units spread across a two-story building. The buyer was an Ohio-based investment group. According to Business Report, the purchase price was $29 million, or $290,000 per unit. But no other details were disclosed. Read More »
Marcus Investments Acquires in Texas
Evans Senior Investments arranged the sale of Crystal Creek at Preston Hollow in Dallas, Texas, on behalf of a regional owner/operator. Built in 2001 with a recent 2018 renovation, Crystal Creek features 119 beds with a range of care levels including skilled nursing, assisted living and memory care. At the time of marketing, occupancy in both the seniors housing and skilled nursing was rapidly declining. Due to the skilled nursing component not being licensed to accept Medicaid, the campus consistently struggled to lease up the beds with Medicare & private pay residents, which resulted in negative operating margins. Evans ran a confidential marketing process, targeting a... Read More »
Seniors Housing Community Purchased in Michigan
Meiser Commercial Real Estate was brought on in the divestment of a seniors housing community in Dewitt, Michigan. Built in 1988, Serene Gardens of Dewitt comprises 52 assisted living and memory care beds. The community had a 98% occupancy rate at the time of closing. The purchase price was $4 million, or $72,900 per bed, but no other details were disclosed. William Meiser and Madison Meiser handled the transaction. Read More »
Brandywine Living Moves On
After 27 years in the seniors housing business, our friend Brenda Bacon finally decided it was time to move on from the company she founded in New Jersey in 1996. The 31-community Brandywine Living, with communities in New Jersey (20), Pennsylvania (5), Delaware (2), New York (2) and one each in Connecticut and Maryland, was sold earlier this month to Retirement Unlimited Inc. (RUI). Based in Roanoke, Virginia, RUI manages 28 communities across the East Coast and is controlled by the Fralin (third generation) and Waldron (second generation) families. Brenda will continue to manage the two New York communities until the state approves the license transfer. Welltower owns 29 of Brandywine’s... Read More »
PE Group Adds Upstate New York IL Community
Four years after acquiring a 50-unit independent living community in the Rochester, New York MSA, a not-for-profit organization divested the property in order to focus on its higher acuity portfolio in the area. Dave Balow of Senior Living Investment Brokerage represented the organization in the property’s sale to a rapidly growing private equity firm in the seniors housing space. The buyer, which paid an undisclosed sum, partnered with a New York-based management company on the deal. The partnership has an existing presence in the Rochester market, which should help them drive future efficiencies at the community and provide a full continuum of care in the local market. Built in... Read More »
Publicly Traded REIT Divests in Oklahoma
Plains Commercial Real Estate was engaged by a buyer to pursue the purchase of a seniors housing community in Ada, Oklahoma. That buyer was an Oklahoma-based owner/operator with an existing footprint in the area, which will help with lease-up and staffing. Built in the late 1990s, Ada Assisted Living comprises 37 units and was struggling from low census. It was not cash flowing at the time of sale. The seller, a publicly traded REIT represented by Blueprint, was going through an operator change for a portfolio of communities that included the Ada community. The incoming operator wanted to focus on urban communities, and the parties chose to engage in the sale. In this value-add... Read More »
Diversified Healthcare Trust Lives Another Day
One of the reasons provided for the misguided merger of Diversified Healthcare Trust with Office Properties Trust, since terminated, was that DHC needed to do it in order not to default on its debt and go Chapter 11. Afterall, they had issued a “going concern” letter early this year because they did not see any way to pay off their maturing debt in 2024. Oops. But in this case, it is a good “oops,” because they did manage to find a way to raise net proceeds of $732 million to pay off all their 2024 debt. The $941 million par value of zero coupon senior secured notes come with a rate of 11.25%, so this is quite expensive. The notes are due in two years with a one-year extension. But if the... Read More »
Another Large Portfolio Trades in December
As 2023 comes to a close, a spate of portfolio deals have closed between large, institutional parties. We usually see the end-of-year rush of closings, usually for tax purposes, but it has been unique for 2023 to see the larger size of some of the deals, as well as the institutional buyers, which have largely sat on the sidelines this year. Newmark’s latest closing featured seven seniors housing properties in three states: Michigan, Pennsylvania and Virginia. They consist of 931 units, with independent living, assisted living and memory care services. The newly-constructed assets are considered Class-A communities in desirable locations. They also experienced positive leasing and operating... Read More »Schedule a demo
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