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 »Zeigler Secures Financing for California CCRC
Ziegler closed $36.0 million in financing for Northern California Congregational Retirement Homes, Inc, doing business as Carmel Valley Manor. The borrower was issued Series 2022 bonds, which will be used together with an equity contribution to fund various campus improvement projects, refinance existing bank debt, fund capitalized interest, fund a debt service reserve fund, and pay costs of issuance. The bonds were issued through the California Municipal Finance Authority and amortized over a 30-year period. They were also issued with a seven-year call at 103, declining to par in 2032. Carmel Valley Manor is a California not-for-profit public benefit corporation that operates a CCRC on 25... Read More »Helios Closes Seven-SNF Texas Transaction
A skilled nursing portfolio sold in Texas with the help of Chicago-based Helios Healthcare advisors. The seller, a regional developer, engaged Helios to sell the real estate of seven facilities, which were subject to existing leases with two of the largest operators in the state. Comprising 852 beds, these facilities were on average 14 years old (relatively young for the sector), the portfolio’s leases were non-performing due to the pandemic. But demand for SNFs is high, and 12 offers were procured from various healthcare real estate investment groups that ranged from publicly traded entities to private family offices. In the end, an Arkansas-based real estate investment group paid $57.8... Read More »SLIB Sells Two AL Communities in South Florida
A skilled nursing operator exited its last two assisted living assets, with Brad Clousing and Daniel Geraghty of Senior Living Investment Brokerage handling the transaction. Located in Lauderhill, Florida, Lenox on the Lake features 133 beds in 127 units, with a mix of assisted living and memory care. Majestic Memory Care in Hollywood, Florida, has 65 units and 115 beds of strictly memory care. Both assets were sold to a regional owner/operator based in South Florida with a growing regional presence. Read More »Blueprint Closes High-Priced SNF Sale in Florida
Blueprint Healthcare Real Estate Advisors made its mark at the NIC Fall Conference with three transaction announcements revealed while the industry descended on D.C. First, Blueprint closed the sale of a skilled nursing facility in Florida. Southern Oaks Care Center of Pensacola, Florida is a 210-bed facility that rebounded to pre-pandemic occupancy of 91% with over $4.0 million in annualized trailing EBITDAR, generating a 21.0% operating margin. Plus, Southern Oaks was slated to benefit from the upcoming Medicaid reimbursement rate increase, so there is still room for growth. A cash-flowing SNF is a hot commodity right now, and a competitive bidding process saw an out-of-state partnership... Read More »Schedule a demo
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