Northmarq Refinances Seattle Senior Living Campus
Northmarq has completed a $33 million refinancing of The Gardens at Town Square. This 168-unit seniors housing community in Bellevue, Washington features independent living, assisted living and memory care. The loan comes with a 10-year fixed rate term and a 30-year amortization, with one year of interest-only payments. This ultimately retired $20.4 million in existing agency debt and returned equity to the borrower. Northmarq arranged the financing for the borrower and operator, ERA Living. Northmarq has an annual transaction volume of $33 billion and a loan servicing portfolio of more than $70 billion. Read More »
More Good Occupancy News
Brookdale Senior Living just reported that its May weighted average occupancy increased by 70 basis points from April, to 74.6%. Even better, month-end occupancy in May increased by 90 basis points in May compared with the end of April, hitting 76.2% at the end of May. That’s 460 basis points higher than the end of May in 2021. And, they had more than 2,000 move-ins in May. This is all counter to the usual performance in the second quarter for the industry, so all is good. Except (always an except), Brookdale’s overall census is still quite low at 76.2%, and needs a lot more of these 90-basis point increases. The third quarter is historically the strongest of the year for... Read More »
Carnegie Capital Finances Boston-Area Acquisition
A partnership between a regional New England operator and a private fund based in Atlanta acquired a 120-bed skilled nursing facility located about 40 miles from downtown Boston, Massachusetts. Built in the 1980s, the facility was occupied in the 80s. Its new owners were able to consummate the deal with an acquisition loan arranged by JD Stettin of Carnegie Capital. The financing included a $4 million bank loan and a $1.5 million working capital line of credit. Mr. Stettin arranged the bank loan to include an earn out upon achieving a 1.25x debt service coverage ratio, which represents 82% of the purchase price. It comes with a five-year term, fixed rate of 4.35% and two years of... Read More »
Eden Senior Care Acquires Cleveland Community
Skokie, Illinois-based Eden Senior Care added an undisclosed assisted living community located in the greater Cleveland, Ohio area to its portfolio, taking over operations from an East Coast based private equity firm. Eden Senior Care will hope to turn things around for the community, as occupancy was 47% and it was losing money on $2.1 million in revenue. Built in 1999, the community features 90 units in seven cottages, with a combination of assisted living and memory care. It comprises roughly 50,000 square feet and is close proximity to a plethora of shops and restaurants. Recently, the community has also undergone multiple amenity renovations since the start of 2017. Evans Senior... Read More »
Standard Communities Acquires California Portfolio
Standard Communities acquired three California seniors housing communities, comprising a total of 559 rental units in Anaheim, San Diego county, and the Bay area. They will be taking over operations from Denver-based property management group AIR Communities, with plans to upgrade the plumbing, HVAC electrical, fire safety and security, as well as make general repairs. Heritage Village Anaheim is a spacious and upscale community consisting of 196 units. According to property records the purchase price was $64 million or about $326,531 per unit. Heritage Park Livermore, located just outside of San Francisco, comprises 167 units with an array of amenities. With rents starting at $2,000 a... Read More »
Live Oak Bank and Locust Point Finance San Diego Construction Project
Live Oak Bank and Locust Point Capital collaborated to close a $28 million construction loan through an A/B unitranche product for a partnership between RhodesMoore, a San Diego, California-based developer, and Portland, Oregon-based operator Frontier Management, LLC. The financing will support the ground-up construction and lease-up of a Class-A, 81-unit assisted living/memory care community in the Clairemont neighborhood of San Diego. Called Mt. Acadia, the urban infill development will consist of a 73,000-square-foot building, a 32-space parking deck and 29 surface parking spaces on 1.52 acres. In addition, there will be a 4,440-square foot commercial building with four bays. No other... Read More »
60 Seconds with Swett: Welltower Grows Its Stake in Active Adult
Active adult’s meteoric rise has been a sight to see, and Welltower seems to have its eyes trained on the sector too. In a business update, the REIT revealed a major acquisition of 25 active adult communities, including 18 open and stabilized communities, two in lease up and five under construction, for a total of $502 million, or $172,000 per unit. The communities cater to the middle market, with rents averaging $1,300 a month, and the properties are in secondary and tertiary markets. Given what Welltower paid for the communities, and what the portfolio could be earning based on full occupancy, it seems they got a good deal, but we wonder exactly how much of a rent increase their current... Read More »
Kisco Senior Living Entering High-End Seniors Housing Market
Kisco Senior Living added a high-quality seniors housing community in Laguna Niguel, California (Orange County) to its portfolio, taking over operations from Atria Senior Living. It also acquired the property with Harrison Street acting as advisor to an institutional investor for an undisclosed price. Rick Swartz, Jay Wagner, Aaron Rosenzweig, Dan Baker and Bailey Nygard of Cushman & Wakefield served as exclusive advisor to the seller, a joint venture between Fremont Realty Capital and Steadfast Development. Opened in 2018, Crestavilla is an upscale community with 201 units of independent living, assisted living and memory care. It is LEED Gold certified and features numerous... Read More »
VIUM Capital Closes Three Bridge Loans
VIUM Capital announced a healthy spree of bridge loan activity for skilled nursing clients in the last couple of months. All of the loans were interest only during the term, which ranged from two to three years. The largest was a $74.51 million bridge-to-HUD loan to support the acquisition of 11 skilled nursing facilities in Arkansas (10) and Mississippi. The portfolio was being sold by three different sellers, but VIUM closed all transactions under one bridge loan in less than 60 days from executed term sheet. Next, VIUM arranged a $36.27 million bridge loan to refinance a portfolio of five skilled nursing facilities in Louisiana. The not-for-profit borrower had various tax-exempt bond... Read More »
Artemis, MorningStar and American Capital Group Refinance in Washington State
CBRE National Senior Housing arranged financing on behalf of a joint venture between Artemis Real Estate Partners, MorningStar Senior Living and American Capital Group to refinance an independent living community in Kirkland, Washington. Set on 3.56 acres, the community recently opened in February 2022 with 152 IL units and is the first independent living asset built in the high-barrier-to-entry, affluent Kirkland market in the last 13 years. Before it opened, the project (plus another in-progress, 141-unit development in Hillsboro, Oregon) was acquired in January 2021 by the joint venture. It is situated next to the 409-unit multifamily development called Lifebridge Kirkland... Read More »Schedule a demo
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