60 Seconds With Swett: Another Somber NIC?
What mood are we in for at this year’s Spring NIC in San Diego? The latest consumer spending data from the Commerce Department showed persistent strength in the economy, boosting the chances of perhaps another 50-basis point increase in the fed funds rate at the next Fed meeting. What will that do to investor and lender sentiment? It’s not as though they are operating in new territory, having dealt with successive 75-basis point increases last year. But scrutiny on deals will increase, prices should fall, and fewer deals could be consummated by the fewer growth-oriented, deep-pocketed buyers out there, in addition to the strategic buyers with local or regional banking relationships to lean... Read More »
Brookdale Senior Living Does Not Renew Leases
LTC Properties announced that Brookdale Senior Living finally decided not to renew leases on 35 assisted living communities with 1,471 units in eight states. Most, if not all, of these properties came to Brookdale as part of its 2005 acquisition of Alterra Healthcare Corporation. Eight years before, Alterra had merged with Sterling House, a company founded by Steven Vick in 1991, and we believe these are some of the original Sterling House communities, which tended to be on the small side. This group of properties is one of the largest in LTC Properties’ portfolio, representing about 8.4% of cash rent. Brookdale has been current on all lease payments, and the leases actually do not expire... Read More »
Integral Senior Living & Discovery Senior Living Combine
Integral Senior Living Management and Discovery Senior Living, two of the largest seniors housing operators, are combining to form the fifth largest management company in the country. The merger is happening via an investment in ISL by funds advised by Lee Equity Partners and Coastwood Senior Housing Partners, two specialized investment firms that had previously recapitalized Discovery. The recapitalization of both companies should create synergies in systems and platforms between the sister companies, which will manage approximately 27,000 senior living units, combined, with a presence in 36 states nationwide. ISL President and CEO Collette Gray will keep her current title as ISL... Read More »
Midcap Financial Acquires Most of Sector Financial’s Healthcare ABL Portfolio
MidCap Financial, a leading commercial finance company focused on middle market transactions, completed an acquisition of a significant portion of Sector Financial’s managed Healthcare Asset Based Lending portfolio, totaling over $500 million in commitments and over $300 million in funded assets. Garrett Fletcher, Product Head of Asset Based Lending at MidCap Financial, had this to say: “We are pleased to expand our portfolio and forge meaningful new partnerships with borrowers in one of our core verticals, serving as a leading capital provider to the healthcare industry and the middle market overall.” Included in the $500 million in commitments were revolving credit facilities with... Read More »
Carnegie Capital Finances Massachusetts SNF Acquisition
JD Stettin of Carnegie Capital financed the acquisition of a 130-bed skilled nursing facility in the Springfield area of Massachusetts with a $7 million first mortgage and a $2 million line of credit for a sponsor and the operator. Built in the late-1980s and renovated in 2005, the facility was around 82% occupied but was underperforming. This is the second opportunistic acquisition between the two entities, and the operator owns another facility nearby. The loan covered 70% of the $10 million, or $76,900 per bed, purchase price. It came with a fixed interest rate of 6.5% and a term of seven years, with two years of interest only. Read More »
Lument Arranges Acquisition Loan and Three Refinances
Lument closed four bridge loans totaling more than $78 million to acquire and/or refinance four memory care communities totaling 311 units in Texas and Wisconsin. Managing Directors Doug Harper, Chris Mauger, and Casey Moore led the transaction for Lument. The deal’s sponsor was Silverado, a large and experienced owner/operator of dedicated memory care communities in California, Kansas, Nevada, Maryland, Texas, Illinois, Virginia, Washington, and Wisconsin. Silverado had been managing Barton Springs, a 56-unit community in Austin, Texas, and was able to acquire the property with an $18.6 million loan (which includes the initial principal and an earn out). Lument also secured $21.1 million... Read More »
CBRE Refinances San Diego-Area IL Community
CBRE’s National Senior Housing team refinanced an independent living community in California. Built in 2021, The Plaza at Lantern Crest comprises 113 units and sits on 3.8 acres in Santee (San Diego MSA). The four-story community features a plethora of amenities including an indoor swimming pool, fitness center, physical therapy office, outdoor theater, a restaurant and 1950’s diner, a bowling alley, a full-service bar and a tea room. Aron Will, Bill Chiles, Matt Kuronen and Michael Cregan of CBRE arranged a $38.3 million, 10-year loan with five years of interest only through its Freddie Mac Optigo lending platform on behalf of the borrower, The Grant Companies. Founded in 1989, The Grant... Read More »
2022 M&A Results and Valuation Statistics
Listen to The SeniorCare Investor and a panel of experts to get a sneak peek of the 2022 M&A valuation statistics and a preview of what is to come in the market. Read More »
Sabra Health Care REIT Sees Occupancy Increases
Sabra Health Care REIT is still working through some portfolio issues, like every other REIT, and it will take until at least next year to wind through them. But from an occupancy perspective, at least with its largest segments, things are looking up. And the transition of 20 additional skilled nursing facilities to The Ensign Group is now complete, bringing the total operated by Ensign to 31 buildings representing 8.5% of annualized NOI. This is important because not only is Ensign one of the strongest SNF operators in the country, but its EBITDARM coverage with Sabra is 1.69x. Also not too shabby from a financial perspective is Avamere Family of Companies, which now leases 29 SNFs from... Read More »
Cushman & Wakefield’s Chicago Transaction
Cushman & Wakefield sold an independent living community in the state of Illinois. Partially occupying a 1939-built hospital, River Glen of St. Charles comprises 106 units of independent living, (including townhomes) assisted living and memory care in St. Charles (Chicago MSA). Selling the community was Salt Lake City, Utah-based Bridge Investment Group. River Glen was then purchased by Citrine Senior Communities in a joint venture with Jaybird Capital for a purchase price of $20 million, or $188,700 per unit. Jaybird Senior Living will manage the community. Historically, the community was fully-leased with its AL and MC units in a mansion-style building and multiple amenities such as... Read More »Schedule a demo
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