The FY2022 HUD Rankings
The golden age of HUD LEAN lending is over, for now, as transaction and dollar volume in the agency’s fiscal year 2022 fell by 32% and 35%, respectively, from their FY2021 firm commitments. FY2021 was the peak, with $4.88 billion in firm commitments across 426 transactions, up from $4.08 billion and 335 transactions, respectively, in FY2020. But now, dollar volume dropped to $3.3 billion across 279 transactions in FY2022, which represents the lowest dollar volume since FY2016 ($2.84 billion) and lowest transaction total in recent memory. And this most recent fiscal year includes nearly two full quarters when interest rates were still near zero. We know that interest rates are still low,... Read More »
60 Seconds with Steve Monroe: Change Is In The Air
I have to admit, I was a bit surprised about the announcement that Brian Jurutka is leaving National Investment Center for Seniors Housing and Care (NIC). I think he was surprised as well. I thought I had a pretty good relationship with him, he was always open and always promptly responded if I had any questions. I also thought he did a good job leading NIC through the COVID crisis when its major revenue stream, the conferences, were forced to go virtual. And in one case, moving the conference to another city at the last minute where it was hoped the warmer climate would help attendance. All without breaking into a sweat. I will miss him. And Brian, if you want to stay in seniors housing,... Read More »
Erickson Senior Living Opens Phase I of $500 Million Development
A new independent living community, Avery Point by Erickson Senior Living, is set to open after two years of construction. Erickson Senior Living developed the community and will operate it going forward. Eventually, the IL portion will be part of a massive 1,400-unit CCRC on 94 acres in Goochland, Virginia (Richmond MSA). Construction started in 2019 with Phase I consisting of 216 independent living apartments in one- and two-bedroom configurations. Erickson announced that Phase I is already filled to capacity and they are expecting the Phase II developments to be sold out as well. Moseley Architects is the architect for the $500-million-dollar development project, which should come out... Read More »
Evans Handles High-Priced California SNF Sale
We saw yet another high-priced skilled nursing deal when Evans Senior Investments announced the sale of a 138-bed skilled nursing facility in Anaheim, California, for $25 million, or $181,200 per bed. Owned by a local operator, the facility was 96% occupied and making over $2 million in net operating income at the time of marketing. Performance continued to stay strong throughout marketing up until the time of closing. The facility also held a contract for over 50 therapeutic residential care beds. The buyer was an East Coast real estate holding company that structured a lease with a local operator. Evans Senior Investments worked on behalf of the seller and the buyer to handle this... Read More »
Brookdale Announces Large Refinance of 2023-Maturing Debt
Amid rumors of a company sale process being initiated, Brookdale Senior Living came out with some news about its occupancy and balance sheet. Consolidated occupancy for September 2022 showed a 50-basis point sequential increase both on a weighted basis and a month-end basis to 76.9% and 78.4%, respectively. Month-end occupancy has now increased by 420 basis points so far in 2022. A couple more years like that should put Brookdale in a much better position, but two more years of 400-basis point occupancy increases are no guarantee, especially if 2022 saw the company gain much of the “low-hanging fruit” post pandemic. Brookdale also announced that it refinanced substantially all of its 2023... Read More »
Colliers Mortgage Refinances Texas Senior Living Community
Corley Audorff, Troon Dowds and Josh Williams of Colliers Mortgage arranged a $38 million refinance of a 159-unit seniors housing community in Bryan, Texas. Featuring independent living, assisted living and memory care units, the community is part of a larger 1,000-acre, master planned community, adjacent to a golf and country club, and has close ties with Texas A&M University, located only a few miles away. The loan carries a three-year term on an interest-only basis for the first two years and was arranged for an undisclosed borrower. The transaction comes after Messrs. Audorff and Williams were joined by Nick Skarich and Steven Marx to close a bridge acquisition loan for a portfolio... Read More »
In-Place Tenant Acquires Colorado SNF
A dually-certified skilled nursing facility located in between Denver and Colorado Springs sold to its existing operator/tenant, with Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors handling the transactions. The 1970s-built facility benefitted from its experienced Colorado SNF operator which was brought in by ownership in 2016 under a triple-net lease structure. Originally, an out-of-state buyer submitted a compelling offer looking to make a strategic acquisition in the state but ultimately decided to withdraw. This allowed the existing tenant to exercise its purchase option at a previously agreed-upon price. The tenant had originally planned to assume the... Read More »
Colliers Mortgage Funds Texas SNF Portfolio Acquisition
Nick Skarich, Steven Marx, Corley Audorff and Josh Williams of Colliers Mortgage closed a bridge acquisition loan for a portfolio of three skilled nursing facilities in Texas. Totaling 358 beds and enrolled in QIPP, the facilities will also receive about $3.5 million in renovations from the undisclosed borrower/buyer. They obtained an $11.8 million loan with a three-year term, two one-year extensions and an interest-only period. Read More »
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 »Schedule a demo
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