Welltower’s SHOP Communities Perform
Following fourth quarter earnings from Ventas, Welltower also posted solid gains in its SHOP portfolio, both sequentially and year over year. On a same-community basis, Welltower’s 654 communities posted a 20-basis point sequential increase in occupancy and a 200-basis point increase year-over-year to 79.1%. Now, while we are sure management would like to see the final year-end numbers higher, and getting over 80% (if not 85%) is crucial, the slowdown in the fourth quarter does not bode well for the first quarter this year. At least this year’s flu season has not been as bad as previously forecast by the media. The same-community net operating income increased 6.3% sequentially, but at a... Read More »
BWE Secures Financing for Harrison Street Portfolio Acquisition
Bellwether Enterprise Real Estate Capital LLC (BWE) arranged acquisition financing for a portfolio of assisted living and memory care communities in California on behalf of an affiliate of Harrison Street Real Estate Capital. The portfolio consists of three communities: Oakmont of Agoura Hills, Oakmont of Lodi, and Oakmont of Silver Creek. They total 75 units, 90 units, and 94 units respectively, each with plentiful amenities. Ryan Stoll and Taylor Mokris of BWE originated the loan through two regional banks to include a five-year, interest-only term. Huntington National Bank participated in the transaction. The communities will continue to be managed by Oakmont Management... Read More »
Helios Helps Sell Six Skilled Nursing Facilities
Helios Healthcare Advisors announced it has structured the sale of a skilled nursing portfolio in western Missouri on behalf of a family owner/operator. The Tiffany Care Centers portfolio consists of six skilled nursing facilities with a total of 360 beds. The portfolio is centered around the Kansas City MSA, offering a buyer a clustered geographical market presence, with potential upside by way of Missouri transitioning its Medicaid program to a case-mix reimbursement system. An East Coast-based owner/operator group emerged as the ultimate buyer of the portfolio. That same buyer entered the state through a separate portfolio acquisition in 2021. Bill Janis, Mario Wilson and Andrew... Read More »
PEF Advisors Acquires Affordable Housing in Illinois
Preservation Equity Fund Advisors LLC (PEF Advisors) acquired an affordable seniors housing community in Illinois. Built in 1998, Freedom Village in Homewood comprises 198 units in three stories in the greater Chicago area. Units include a mix of one- and two-bedroom floorplans and are reserved for seniors earning up to 60% of the area median income. At the time of the transaction, the community was 98% occupied. The seller and purchase price of the community were not disclosed. Just last month, according to Levin Pro LTC, PEF Advisors also acquired Belmont Place Senior Apartments, a 110-unit affordable seniors housing community in the Chicago area. That transaction closed on January... Read More »
Capital Funding Group’s 2022 Recap
Capital Funding Group (CFG) announced that the company executed more than $2.7 billion in financing deals throughout 2022. The transactions consisted of seniors housing and multifamily properties. Of that total, CFG financed 24 HUD loans, in excess of $250 million, and 88 healthcare and multifamily bridge-to-HUD loans, in excess of $2.5 billion. Some highlights from CFG’s seniors housing and long-term division included: $317 million bridge loan for the refinancing of a nationwide skilled nursing facility portfolio $40 million loan for the refinancing of an assisted living/memory care community in Simi Valley, California $19 million HUD loan for a 152-bed skilled nursing facility in Florida... Read More »
60 Seconds With Swett: 2022 M&A Results and Valuation Statistics
As we look back on 2022, in terms of M&A, it was a tale of two years, split by a low-interest rate environment in the first half and high rates in the second half which killed many deals and sunk most property values. Signs from the Fed point to interest rates remaining around this elevated level, or even higher, for most of 2023, so the M&A market of this year will likely look very similar to the market of the second half of last year. So, it could be helpful to know where did values settle across the different sectors and property types last year? How did a property’s age, quality, occupancy, operating margin or location affect its valuation? How have buyers’ strategies shifted... Read More »
Biden Administration Wants More SNF Transparency
The Biden administration is at it again. While he had just a passing reference to skilled nursing in his State of the Union address, Joe Biden is back at it now. They are continuing with the mantra that after private equity firms buy nursing homes, the mortality rate increases by 10%. However, they do not say why and what other influences there may be, such as higher acuity rates, which would by definition result in more deaths. Private equity firms always try to get their operators to increase the Medicare census in facilities they purchase because that is where the profits are, not in custodial care Medicaid patients. This is partly why there is an increase in taxpayer spending after a... Read More »
Northmarq Arranges Construction Loan
Northmarq’s debt and equity team of Keith Wells, Hunter Wood, Reina Abboud and Mike Lowry arranged a $38.1 million loan for the construction of Lake Forest at Swift Creek in Midlothian, approximately 15 miles west of Richmond. Set on 11.7 acres, the active adult community will have 176 units in four stories, and is being developed by The Holladay Corp., a real estate development and investment firm based in Washington, D.C. The community will open in 2024. Sandy Spring Bank provided the debt for the development. Read More »
Chicago Pacific Acquires Two Independent Living Communities
Chicago Pacific Founders announced the acquisition of two assisted living communities in the state of Georgia. Built in 2017, Celebration Village Acworth comprises 226 units, which consist of 144 independent living, 55 assisted living and 31 memory care units. The community sits on eight acres northwest of Atlanta. Next for CPF was the acquisition of Celebration Village Forsyth. Built in 2017, the community comprises a total of 248 units, which comprise 162 independent living, 55 assisted living and 31 memory care units. Village Forsyth sits on seven acres also just north of Atlanta. Read More »
Helios Healthcare Advisors Arranges Acquisition Financing for Texas ALF
Helios Healthcare Advisors helped arrange acquisition financing for the purchase of a 40-bed assisted living community in Bulverde, Texas, on behalf of a Texas-based buyer. Built in 2016, the community consistently maintained stabilized census and operating margins with a majority private-pay payor mix. The seller, a single-asset owner/operator, exited the industry with the sale. Helios was engaged by the buyer in late 2022 to source the acquisition target and subsequently procure the financing. Texana Bank emerged with the most competitive offering and provided a term loan to help fund the acquisition. Simultaneous with the closing, the buyer entered a triple-net lease with an operator to... Read More »Schedule a demo
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