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 »
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 »Schedule a demo
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