Buyer Enters SNF Market with Ohio Acquisition
Evans Senior Investments arranged the sale of a 99-bed skilled nursing facility in Ohio. Built in phases from 1946 through 1985, the facility received two significant renovations in 2013 and 2019. It comprises 47 private rooms and 26 semi private rooms and was 70% occupied at the time of marketing. The high number of private rooms meant that the facility operated with an above-average quality mix, but it was operating around breakeven. This was the buyer’s first skilled nursing acquisition, although it was involved in the operations for a regional owner/operator for years. Read More »
White Oak Healthcare Partners Closes Slew of Financings
White Oak Healthcare Partners reported a busy month of September, closed six loans totaling more than $275 million in volume, all of which came with three-year, variable-rate terms. In Georgia, the debt fund closed a $110.6 million recapitalization for the landlord of a 700-bed portfolio of skilled nursing facilities. The facilities are triple-net leased to an experienced operator with a strong presence in the state. Sized to HUD guidelines, the loan will be used to refinance existing bank debt, fund closing costs and provide a dividend to the ownership group. Derek Whelan and Joe Munhall originated the transaction. Another recapitalization occurred in Ohio and California. Ross Holland and... Read More »
CBRE Sells Active Adult Portfolio in Three States
A couple of institutional investors traded a portfolio of four active adult communities in three states. All recently built and boasting occupancy above 95%, these communities total 481 units in three MSAs: Pittsburgh, Pennsylvania, Louisville, Kentucky, and Indianapolis, Indiana. Each community also featured on-site beauty salons/barber shops, fitness centers, community family rooms with kitchens, and numerous amenities. CBRE’s Indianapolis Multifamily team consisting of Steve LaMotte and Dane Wilson, CBRE’s Pittsburgh Multifamily team consisting of Laura Lawrence, and CBRE’s National Senior Housing team members John L. Sweeny, Jr., Aron Will, Garrett Sacco and Scott Bray represented the... Read More »
A Successful Turnaround, Twice
We have always stated the belief that smaller providers are nimbler and more on top of operations at the community level. That being the case, they are usually better able to turn around operations of a struggling community. Not always, but they have a better chance. This should also hold true with turning around communities after COVID. Large companies such as Brookdale Senior Living, while steadily increasing occupancy, are still far below where they were before the pandemic. So here is a case study about two turnarounds with the same community. In May 2019, a small provider, Bloom Senior Living, purchased a 78-unit assisted living/memory care community in Kokomo, Indiana from Capital... Read More »
Carnegie Capital Finances Texas Transaction
JD Stettin of Carnegie Capital helped a private, Atlanta-based fund acquire a portfolio of nine skilled nursing facilities in Texas by arranging an $87.5 million bridge loan to fund the deal. Totaling 1,050 beds, the facilities were on average around 25 years old, with decent occupancy ranging from the high-70s to the low-80s. The facilities were also enrolled in QIPP and UPL, making the portfolio much more attractive to a potential buyer. That interested party was an Atlanta-based company that owns more than 30 SNFs in four states, which will bring in one of the largest operators in Texas to operate the facilities going forward. They paid $100 million, or $95,200 per bed, and the... Read More »
60 Seconds With Swett: Everybody’s Talking About Brookdale
This week, we can’t not talk about Brookdale Senior Living reportedly exploring a sale of the company and engaging with advisers to find potential buyers, and the rumors are flying. Will Healthpeak Properties, now under the helm of Welltower alumnus Scott Brinker, reenter the seniors housing market in the big way by buying Brookdale? Or will Ventas, with its size and its warrants to buy 16.3 million shares at about $3 per share, be the buyer? Or will a PE firm take the company private and continue the long road to recovery without an eye towards quarterly earnings reports. There is also the question of whether Brookdale CEO Cindy Baier will stay on in her role after more than four years as... Read More »
Ziegler and M&T Realty Capital Corporation Colorado Refinancing
Ziegler, in partnership with M&T Realty Capital Corporation, announced a $19.4 million Fannie Mae loan on behalf of Essex Communities to refinance the existing debt of Carmel Oaks. The 86-unit independent living community stands three stories tall and sits on four acres in Lakewood, Colorado (Denver MSA). The 10-year, fixed-rate loan was structured at 75% loan-to-value with five years of interest-only payments, followed by 30-year amortization. The loan also carried a declining prepayment schedule, which will provide the borrower with additional flexibility in future years. In addition to refinancing the existing debt, the loan also provided funding for Essex to recover capital... Read More »
Del Webb Develops in Texas
Del Webb is set to open its newest 55+ community, Del Webb Fulshear, just west of Houston, Texas. Comprising 725 single family ranch-style homes across more than 230 acres, Del Webb Fulshear features three unique home series from Del Webb’s consumer-inspired GenYou collection: The Scenic, Distinctive and Echelon. The resort-style community will offer over three miles of walking trails in addition to an indoor and outdoor pool with prices starting in the high $200,000s. Del Webb has been busy developing its own brand of large 55+ communities, which fall out of the generally accepted definition for active adult communities (as AA communities are usually rental options). However, active adult... Read More »CBRE Arranges Construction Financing
CBRE National Senior Housing arranged construction financing for The Crestmoor at Green Hills in Nashville, Tennessee, on behalf of a joint venture between Bridgewood Property Company and Harrison Street. Aron Will and Tim Root arranged the loan, which featured a five-year term and was provided by a regional bank. The community will be operated by Bridgewood’s wholly owned management company, The Aspenwood Company. The community will be situated on a 0.99-acre irreplaceable parcel directly abutting the Green Hills Mall in the heart of the Green Hills neighborhood, an affluent neighborhood in Nashville. The proposed project will consist of 117 independent living units, 45 assisted living... Read More »A Recap For The Clare
When Fundamental Advisors and Senior Care Development, together with the manager Life Care Services, purchased The Clare in downtown Chicago out of bankruptcy in 2012 (then known as The Clare at Water Tower), it looked like a risky bet for some people. After all, its reputation was sullied a bit with the bankruptcy, occupancy was low, and there were still people questioning the entrance-fee model of CCRCs. As usual, hindsight is 20-20. With some changes instituted by the buyers, The Clare soon thrived, with occupancy reaching 98% to 99% with a wait list prior to the pandemic. But then census dipped by 400 to 500 basis points during COVID. Other providers should have been so lucky.... Read More »Schedule a demo
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