Texas Development Lands Construction Financing
A major theme coming out of the NIC Fall Conference was the drying up of the construction lending market, but JLL Capital Markets announced it has arranged $61 million in construction financing for the development of The Preserve at Spring Creek, a 230-unit assisted living, memory care and independent living community in Garland, Texas. JLL worked on behalf of the joint venture sponsor, JAMP Enterprises LLC and Frontier Management LLC, to secure the 15-year, 75% loan-to-cost, floating-rate loan through a regional bank, with five years of interest only. The community will consist of a 120-unit apartment-style complex as well as 110 additional two-bed, two-bath independent living cottages... Read More »Utah-Based SNF Owner Enters Assisted Living Sector
A Utah-based developer is exiting the assisted living industry, with Vince Viverito, Brad Goodsell and Jason Punzel of Senior Living Investment Brokerage handling the final sale. Last month, the same SLIB trio sold the company’s other remaining assisted living assets, which were located in the western United States. Located in Lehi, Utah (Provo area), the last assisted living community was vacant, having been built by the seller in 2016 with 62 units on 1.5 acres. It sold for $8.95 million, or $144,400 per unit. The owner was focused on divesting the portfolio in order to focus on its core industries (multifamily and retail) and strategically decided to shut down this building to... Read More »Blueprint Facilitates Florida Bankruptcy Sale
Blueprint Healthcare Real Estate Advisors announced the sale of an assisted living community in Florida. Vista Lake of Leesburg comprises 74 units of assisted living and memory care in the greater Orlando area. Built in two phases in 1996 and 2000, the community was acquired in 2018 through a portfolio transaction by Eagle Senior Living. However, the community struggled during the pandemic as Eagle Senior Living simultaneously navigated Chapter 11 bankruptcy. Blueprint was engaged by the Eagle Senior Living in the summer of 2021 to run a competitive sale process for the Leesburg community, which included selecting a stalking horse bidder in addition to launching a broader auction process.... Read More »More Thoughts On NIC: Labor and Inflation
The good news that came out of the NIC Conference was that nearly everyone we talked with or listened to on the panels said that their agency use (and cost) had been in decline in 2022, with some 50% lower and others expecting to be out of the staffing pools by year end, other than some sporadic use to fill a gap, which was what they were always supposed to do. What they did not volunteer was by how much their in-house labor costs were rising as a result, when they could find employees to hire. Labor is still the number one concern, and someone quipped that they did not even hear COVID mentioned once during the conference. Yes, wages are rising, but are they rising enough to attract all... Read More »60 Seconds with Swett: More Distress is Coming
It was great to see so many people at NIC, and we were happy to hear of deals still getting done and of some healthy transaction pipelines as well. As we have been saying, M&A activity will slow as a result of the rate increases and other economic factors, but many deals will still be made. That is because there should be plenty of willing sellers in the next few quarters (or longer). As soon as many of these owner/operators felt they were somewhat in the clear from the pandemic and even from staffing agency use, inflation hits and their margin recovery looked less likely. And after more than two years of heavy stress, plenty will say “enough is enough” and decide to sell. What is... Read More »Thoughts On The Fall NIC Conference
Industry leaders convened last week in Washington, D.C. for the annual Fall NIC Conference, and while conversations were lively and some people were even jovial, something had definitely changed since the Spring Conference. One person said it was the second most somber NIC he had been to, after 1999. We would not say it was somber, but let’s just say we did not hear of many deals getting done. We would, however, like to set the record straight from one of the sessions on the first day, when a respected panelist stated that transaction volume was down 40% this year. Not even close to being accurate. Is transaction volume slowing? Of course. But if nothing closed for the rest of the year,... Read More »Georgia Campus Funds Renovation Project
Bellwether Enterprise Real Estate Capital, a national commercial and multifamily mortgage banking company, announced it has closed a $23.9 million loan to finance the renovation of Jewish Tower and Zaban Towers in Atlanta, Georgia. Built in the 1970s, the communities have 200 units and 60 units, respectively. The affordable independent living communities sit on 10.3 acres and are connected through a skilled nursing facility, William Breman Jewish Home. The borrower, The Jewish Home Tower Inc., will finance the renovations with a HUD 221(d)4 sub-rehab loan, originated by Jeff Mion of BWE’s Duluth, Georgia, office. The project includes updates and improvements to handicap accessibility, a... Read More »Upscale Utah Community Refinances Through Freddie Mac
KeyBank Real Estate Capital announced that it has secured a $68.3 million permanent loan through Freddie Mac for a seniors housing property in Utah. The Woodbury Corporation, Colmena Group, and Western States Lodging are refinancing the newly constructed Legacy Village of Sugar House in Salt Lake City. Set within the master-planned Sugar House neighborhood, the 10-story luxury senior housing property features independent living, assisted living and memory care units. There is also retail and commercial parking space, and the community offers mountain views from every residential floor. Morgin Morris of KeyBank structured the 10-year, fixed-rate loan with an initial five-year period of... Read More »Helios Structures Sale of Well-Occupied Massachusetts SNF
Helios Healthcare Advisors announced the sale of a 144-bed skilled nursing facility in Wrentham, Massachusetts. Maples Rehabilitation and Nursing Center was a family-run skilled nursing and a 29-bed early education daycare center in operation for the past 60 years. However, the original family that founded Maples in 1963 decided to exit the industry. Some of the largest owner/operators and investors in New England looked at the facility, but Southborough, Massachusetts-based Alliance Health and Human Services was selected as the buyer. At the time of transaction Maple’s occupancy was at 95% with a quality mix above 40%. The transaction process involved three different licensure... Read More »The Prestige Group Sells Philly-Area Community
The Prestige Group announced the sale of an assisted living community in Philadelphia, Pennsylvania. Built in 1926, Parkside Manor features 51 units and sits on 1.4 acres. Joe Shallow and Richard Natow handled the transaction. Both the seller and buyer of the community were not disclosed. Last week, according to Levin Pro LTC, The Prestige Group also closed the sale of an assisted living community in Georgetown County, South Carolina. The 48-unit community sits on 8.2 acres just south of Myrtle Beach. In addition, Prestige recently closed the sale of a skilled nursing facility in Connecticut. Featuring 46 beds, the facility sits on 8.5 acres in Watertown. Read More »Schedule a demo
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