REIT Divests Small Memory Care Asset
A REIT divested a small, non-core asset in Portland, Oregon, hiring Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage to close the deal. The community, which features 40 beds and 30 units of memory care, was built in 2010 and expanded in 2013. The REIT bought the property in the mid-2010s but decided to sell to a local owner/operator. The buyer will focus on capital improvements as well as improving occupancy and operations. No other details were disclosed. Read More »
Ziegler Arranges Large Bond Financing for CCRC Development
Ziegler closed a large bond financing for the development of a large, luxury CCRC in Kiawah Island, South Carolina. The community, to be called Seafields at Kiawah Island, is being developed by BRP (Big Rock Partners) Senior Housing Management, a vertically integrated firm that develops and operates seniors housing communities in Florida and, now, South Carolina. BRP received $212.93 million in bond proceeds to fund the CCRC’s development as well as to refund the outstanding Series 2021 Bond Anticipation Notes. The financing also funded debt service reserves, interest and the costs of issuance. The bonds are fixed rate bonds and will be issued through the South Carolina Jobs-Economic... Read More »
Walker & Dunlop Finances Active Adult Communities
Walker & Dunlop, one of the largest commercial real estate finance and advisory services firms in the United States, announced that it has financed 10 active adult communities totaling $390 million over the last year and over $1 billion in volume in the sector throughout the last five years. GSEs, multiple life companies, banks and debt funds were used as sources for debt capital. The loans were both fixed and floating-rate, dependent upon the property. The capital markets team that handled these transactions was led by Matt Wallach, Stephen West and Walker Layne. Read More »
60 Seconds with Swett: Two Cheers for the SNF Rate Bump
CMS came out with its final skilled nursing facility payment rates for fiscal year 2024, and the sector will benefit from a 4.0% net increase, or approximately $1.4 billion, in Medicare Part A payments. That is up from the initially proposed 3.7% net increase and reflects a 6.4% net market basket update to the payment rates. There were a couple of negative adjustments that brought the net rate increase down, including a negative 2.3% decrease as a result of the second phase of the PDPM parity adjustment recalibration. That reduction came as no surprise, as PDPM was meant to be budget neutral and has been a net-benefit to many SNFs since the 2019 implementation. But to the SNF advocates... Read More »
Fairview/Sanford Health Merger Called Off
The merger between Fairview Health Services and Sanford Health was called off after Sanford announced on July 27 that it was discontinuing the process. The transaction would have led to the combination of two of the largest not-for-profit senior living operators in the country, Evangelical Lutheran Good Samaritan Society (whose parent organization is Sanford) and Ebenezer (which is a subsidiary of Fairview). Sanford owns more than 200 Good Samaritan locations, and Minnesota-based Fairview has more than 90 senior living locations managed by Ebenezer. The combined entity would have owned 58 hospitals, as well. Announced in late 2022, the merger was expected to be completed in March 2023,... Read More »
Newmark Hires Capital Markets Veteran
Nearly two months after Newmark lost David Fasano and Ross Sanders to Berkadia, the firm is building its team with the hire of capital markets debt and structured finance veteran Bill Fishel as executive vice chairman. Fishel will specialize in raising debt and equity capital for institutional-grade assets and developments across North America, with a focus on structured finance. He will report to Chad Lavender, president of capital markets for North America at Newmark. In his 14-year career, Fishel has executed over $15 billion in financing for a wide range of asset classes, including retail, office, multifamily, industrial, hospitality, single tenant, land and data center properties. He... Read More »
Alta Senior Living Expands in South Florida
Alta Senior Living acquired Palm Beach Memory Care, a newly built memory care community located in North Palm Beach. Around 20% of its 60 units were already pre-leased when the community opened. Dan Baker of JLL arranged the sale, but no other details were disclosed. Alta’s portfolio is spread across the country, with locations in Colorado, California, Minnesota and Florida. Its regional headquarters is located near the new Palm Beach community and two other South Florida communities in Tequesta and Margate. Read More »
Haven Senior Investments Handles Two Deals
Haven Senior Investments announced the sale of two assisted living communities in Texas and Missouri. The faith-based advisory and brokerage firm handled the transactions on behalf of two long-standing family owners. First was the sale of a 33-unit/64-bed assisted living community in northwestern Missouri, near Kansas City. Its local owner/operator decided to retire and sell the community to a private equity company headquartered in New York. This acquisition marks the buyer’s second foray into Missouri, after the company purchased another property in the region in June. Robin Gestal, Haven’s Chief Operating Officer, and her team handled the transaction. Next, Managing Director... Read More »
Grandbridge Hired to Sell CCRC
Grandbridge Real Estate Capital has been hired to sell a 329-unit CCRC in Port Washington, New York, on Long Island. The entrance-fee community opened in 2010 on 8.9 acres, and the current bankruptcy is its third, and hopefully, final Chapter 11 filing. It is a beautiful community that had bad timing, opening at the end of the Great Recession during a very weak housing market, restructuring its debt twice, and then had to face the pandemic. In 2019, average occupancy was 93%, but it dropped with the pandemic. The community has approximately 229 independent living units, 26 assisted living units, 18 memory care units and 56 skilled beds. In-place IL rents average $5,800 per month and the... Read More »
CFG Releases H1:23 Results
Capital Funding Group (CFG) financed $411.2 million across 27 deals in the first half of 2023. The total included 19 healthcare bridge loans, five multifamily bridge loans (totaling $49.7 million), and three HUD loans for clients across the country. The largest transaction was CFG’s closing of $207 million in financing to support the refinancing of 10 skilled nursing facilities across Maryland, Virginia, and North Carolina. That was followed by $84 million in bridge-to-HUD acquisition financing for the purchase of seven skilled nursing facilities and one assisted living community in Alabama. Other bridge loans included a $34 million loan for the acquisition of three skilled nursing... Read More »Schedule a demo
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