CIBC Bank Provides Multiple Financings
CIBC Bank announced it has provided a California lessor with a $17.5 million loan to refinance an assisted living and skilled nursing portfolio. Located in Southern California, the communities consist of 180 assisted living units and 100 skilled nursing beds, and are run by a local operator. With an effective age of 25 years, the properties had historical occupancy around 70%, and the EBITDAR margin was approximately 13%. Matthew Tyler and Neal Netzel handled the financing on behalf of CIBC. CIBC Bank also announced it has provided $39 million ($29 million at closing with a $10 million earn-out) in acquisition financing for a 116-unit assisted living/behavioral health facility in Arizona.... Read More »
Ensign Group Does It Again
Perhaps The Ensign Group should hire Britney Spears to perform at its Holiday party this year, and she can sing, “Oops, I did it again.” Because that is exactly what Ensign did. Another profitable quarter notched in its belt when too many skilled nursing operators continue to suffer, and it upped its earnings guidance for the rest of the year, the second time it has done so this year. The skeptic would claim they just give low guidance so they can keep on upping it. We don’t really care, as long as they keep on performing as they do. The “market,” however, was disappointed because Ensign missed consensus earnings per share estimates by one penny, so the share price dropped by 4%. Ho hum.... Read More »
Evans Senior Investments Handles Washington State Portfolio Deal
Chicago-based real estate investor Oxford Capital Group, in a joint venture with funds managed by affiliates of Fortress Investment Group, announced the acquisition of three seniors housing properties in Sequim, Washington for a purchase price of $54 million or $209,302 per unit. Evans Senior Investments handled this transaction. Comprising 256 total units, the properties all reside on one campus and were built between 1974 and 2007. Prior to the pandemic, the portfolio was 91% occupied and producing $3.5 million in annual net operating income, but at the time of closing occupancy dropped to around 85%. Previously owned by an independent family operator, The Sherwood Portfolio will receive... Read More »
Dwight Capital Announces Third Quarter Activity
Dwight Capital and its affiliate REIT, Dwight Mortgage Trust, financed $192.29 million in seniors housing and healthcare financing during the third quarter of 2022. Dwight provided a $42 million bridge loan to facilitate the acquisition of a three-property SNF portfolio in New Hampshire: Epsom Healthcare Center, Maple Leaf Healthcare Center and Villa Crest Nursing and Retirement Center. The facilities have 387 beds and approximately 195,860 square feet. Josh Sturm originated the transaction. Dwight also financed a $27 million bridge acquisition loan for a portfolio of four assisted living/memory care communities in Jamestown and Frewsburg, New York: Tanglewood Manor, Memory Gardens, The... Read More »
Urban Developments Keep Rising in Seniors Housing
Minnesota-based developer Ryan Companies in collaboration with Harrison Street and Cadence Living have announced its latest seniors housing community in Arizona, Acoya Shea of Scottsdale. Construction has begun on the $64 million community which will comprise 147 units of independent and assisted living. At a cost of $435,000 per unit, the latest community by the development trio will encompass 197,000 square feet on 2.5 acres just miles from Phoenix. The project received a construction loan from Regions Bank. The buyers of the land were represented by Keith Mishkin of Cambridge Properties and Jim Riggs of Platinum Advisors. Daniel Raimer, the vice president of real estate development for... Read More »
60 Seconds With Swett: PE Firms Scrutinize Labor-Intensive Healthcare Deals
I attended the McDermott Will & Emery HPE New York event last week and learned a lot about private equity firms’ healthcare M&A strategies, and how valuations, deal processes, terms and their targeted sectors are changing in a rising interest rate world and in a recession. Healthcare companies are going through many of the same woes as senior care: fraught sponsor/lender relationships, wide bid-ask spreads, increased deal scrutiny from buyers and capital providers. That last one doesn’t sound bad. And there were always the optimistic comments around demographics and healthcare’s recession-resistance. But the general observation was that the party has ended, and the M&A boom of... Read More »
Kauhale Health Set to Grow in the Midwest
Brand-new operator Kauhale Health announced it has formed a strategic alliance with seniors housing industry veteran Torey Riso. The former CEO of Blueprint Healthcare Real Estate Advisors and publicly traded Care Investment Trust will assist Kauhale in expanding its Midwest portfolio, which currently sits at one owned and one managed property, both in Michigan. According to Levin Pro LTC, Kauhale Health made their first seniors housing acquisition in August with the purchase of Vicinia Gardens of Otsego, a 52-unit assisted living community in Michigan. Previously, Kauhale was appointed manager of the CCRC Vista Grande Villa in Jackson, Michigan in March 2022. By partnership with Mr. Riso,... Read More »
Locus Point Provides Financing
Live Oak Bank and Locust Point Capital closed a $15.2 million loan through an A/B unitranche product for Georgia-based Phoenix Senior Living. The financing will retire the existing construction debt of Retreat at Lady’s Island, a 75-unit assisted living/memory care community in Beaufort, South Carolina. Built in 2018 by Connexion Senior Living, the $10.2 million, or $136,000 per unit, construction project encompasses 55,000 square feet and sits just northeast of Savannah, Georgia. With the transaction, Live Oak Bank was able to expand its relationship with both Phoenix Senior Living and Locust Point Capital. Read More »
Oxford Finance Provides $124 Million Acquisition Loan
Oxford Finance announced the closing of a $124.7 million senior credit facility for the acquisition of four Autumn Lake Healthcare skilled nursing facilities. Located in Burtonsville, Sykesville, Rising Sun and Manchester, the four facilities comprise a total of 520 licensed beds and sold for a combined $142.5 million, or $276,200 per bed. Gideon Orion of Walker & Dunlop handled the sale. Autumn Lake Healthcare maintains a network of independently owned and operated nursing homes and rehabilitative care centers across Connecticut, New Jersey, Maryland, West Virginia, and Wisconsin. The seller, Axis Health, sold two other facilities on the Eastern Shore of Maryland to Key Health... Read More »
Bourne Financial Group’s Arizona Acquisition
Florida-based private equity investor Bourne Financial Group acquired a large senior living community in Mesa, Arizona. Built in 1978 and significantly renovated from 2013 to 2017, Bella Vista features 188 units of independent living and assisted living. It was previously owned by a joint venture between two real estate investment firms: Wexford Real Estate Investors and Beztak Companies. They were represented by Cushman & Wakefield in the transaction. Rick Swartz, Jay Wagner, Aaron Rosenzweig, Sam Dylag and Jack Griffin worked on the deal. Going forward, Bourne Financial Group will manage the community with its in-house operator, Park Avenue Lifestyle. The property was considered to... Read More »Schedule a demo
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