Regional Owner/Operator Divests Facility, Exiting Sector
Daniel Geraghty and Bradley Clousing of Senior Living Investment Brokerage were engaged by a regional owner/operator in its divestment of a senior care facility. The seller is looking to consolidate its portfolio and exit the skilled nursing industry. The buyer is a regional-based owner adding to its portfolio throughout the state, Arkansas. Built in 1990, Indian Rock Village comprises 121 skilled nursing, assisted living and independent living beds/units. There are 28 independent living units, 38 assisted living units and 55 skilled nursing beds. The facility is well-maintained and in excellent condition. It overlooks Geers Gerry Lake and spans 83,825 square feet in Fairfield Bay,... Read More »
BMO Provides $140.6 Million in Bridge Financing
BMO Healthcare Real Estate provided $70.6 million in bridge financing to a joint venture of New Perspective Senior Living, Boldt Capital and Fengate Asset Management, for the recapitalization of two Class-A seniors housing communities. The communities total 290 units in Franklin and Waukesha, Wisconsin. Loan proceeds include capital allocated for future capital improvements and value enhancement. In a separate transaction, BMO provided $70.0 million in bridge financing to the same joint venture for the recapitalization of three Class-A seniors housing communities. The communities total 435 units and are in suburban Milwaukee, Wisconsin (two communities), and West Fargo, North Dakota. Loan... Read More »
Newer-Vintage Facility in New Mexico Changes Hands
Blueprint was brought on to facilitate the sale of an inpatient transitional care facility, Las Cruces Post Acute and Rehab. Built in 2017, the facility features 50 beds and is in Las Cruces, New Mexico. It’s located within two miles of three short-term acute care hospitals that offer quality Medicare referral opportunities. Trailing EBITDAR was approaching $745,000 at the time of marketing. Amy Sitzman and Giancarlo Riso handled the transaction. Multiple offers were received, with Blueprint ultimately advising the client to move forward with an owner/operator representing strong execution certainty. Blueprint had transacted with the buyer previously in New Mexico. The deal closed about... Read More »
Public REIT Divests in Northern Louisiana
Helios Healthcare Advisors facilitated the purchase of two assisted living communities in Northern Louisiana on behalf of an independent investment group based in Texas and Louisiana. Savannah Court of Bastrop and Savannah Court of Minden were owned by a public REIT and operated by a regional provider under a triple-net lease. Built in the late 1990’s, both communities had a historical average occupancy of 90% and maintained positive cash flow. Helios effectuated a cooperative operations transfer for the new tenant. A mortgage loan was secured through Texana Bank to fund the purchase, at 85% loan-to-cost and an interest rate of 7.5%, under a 25-year amortization. The transaction... Read More »
60 Seconds with Steve Monroe: REITs and PE Will Be Attacked Again
The Chapter 11 filing by Steward Health Care was not a surprise to anyone in the healthcare world. Its former PE owner, Cerberus Capital, will be attacked because they made a significant profit when they finally exited their 2010 investment 10 years later. No one wants to remember that they bought six failing hospitals in Massachusetts and rejuvenated them. Without that purchase, there was a good chance they would have been shuttered. Medical Properties Trust will be attacked because its leases ended up being too expensive, even though it helped Steward grow, took an equity interest in the company and provided new capital. Everything seemed to be going swimmingly, and then COVID hit, and... Read More »
Here We Go Again With The Post
The Washington Post is on the attack again, publishing a story last Friday on the overuse of 911 calls when a resident falls in assisted living or independent living, and how some towns are starting to charge seniors housing communities a fee for each 911 visit of this sort. Apparently, in some towns these 911 “fall” calls have been rising. If we were living in a non-litigious world, perhaps the seniors housing communities would not feel as if they had to call. In some states, it is required if the resident can’t get up on their own. I used to live next door to a small independent living community that we called an unlicensed assisted living building because it had small units, mostly... Read More »
Bourne Acquires AL/MC Asset (with HUD Debt)
Representing a regional owner/operator, Evans Senior Investments successfully sold Trinity Hills of Knoxville, an 80-unit assisted living/memory care community in Knoxville, Tennessee. Built in 2006, the community features 66 AL and 14 MC units, all serving private pay residents. Occupancy was strong at the time of marketing, at 92%, and it stayed above 90% for more than 12 consecutive months. It also generated around $400,000 of NOI on $3.7 million of revenues, for an 11% margin. That could be improved and offered the opportunity for a new owner to add significant value to the community. There was also assumable HUD debt on the property that increased its appeal to buyers. Evans targeted... Read More »
Berkadia Finances Clarendale Clayton
Berkadia refinanced Clarendale Clayton, a best-in-class seniors housing community in Clayton, Missouri (St. Louis MSA), that offers the full continuum of care in a high-end, resort-style setting. Opened in 2021, the 13-story property features 283 units of independent living, assisted living and memory care (195 IL, 66 AL and 20 MC). Managing Director Austin Sacco of Berkadia Seniors Housing & Healthcare arranged financing through a national bank on behalf of the borrower, a joint venture between Harrison Street, Ryan Companies US, Inc., and Life Care Services (LCS). The $82.45 million floating rate loan (or $291,000 per unit) featured an attractive interest rate and five years of... Read More »
Multifamily Investor Buys Ohio IL Community
An independent owner/operator chose to strategically divest its 102-unit independent living community in a prominent suburb of Cleveland, engaging Blueprint to get the deal done. Built in the late 1980s, the purpose-built community was stabilized, cash-flowing and well occupied. Plus, there was upside through a capital deployment plan. Few of these kinds of stabilized assets are hitting the market right now, and the property received seven offers from highly credible acquirers. The selected bidder, a private Northeast-based investor, is bringing its significant multifamily experience into the independent living sector. Blueprint, with execution support from a multifamily-focused... Read More »
Dwight Capital Announces Q1 Activity
Dwight Capital and its affiliate REIT, Dwight Mortgage Trust, financed $152.5 million in transactions during the first quarter of 2024. Among the transactions were a $44 million bridge loan for a 369-bed, seven-story skilled nursing facility in the Southwest U.S. The bridge loan, which closed in conjunction with a $5 million revolving line of credit, is expected to be refinanced through HUD in approximately 24 months. Adam Offman and Josh Sturm, Managing Directors of Healthcare, originated the transaction for a recurring client. Dwight also closed $26 million in HUD financing for River Towne Center and Etowah Landing, two SNFs in Georgia. The transaction included a $17.4 million refinance... Read More »Schedule a demo
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