VIUM Capital Announces Q2 Financing Activity
VIUM Capital closed 11 financings totaling over $350 million in the second quarter of 2023, including bridge, HUD and tax-exempt bond financings for 57 separate properties in 10 states. One of the bridge loans was arranged to finance a family partner buy-out of a 329-bed skilled nursing portfolio in Missouri. The loan totaled $13.25 million and should be ready to be submitted to HUD in six to nine months. Another bridge loan, totaling $20 million, funded the acquisition of an assisted living portfolio in Oregon and its subsequent conversion to memory care. There were 140 units across 10 small communities. One of the HUD highlights was a $17.874 million loan arranged for a... Read More »
Eads Arranges Six-SNF Portfolio Deal
Patrick Byrne of Eads Investment Brokerage sold a skilled nursing portfolio in Missouri, representing a long-time Missouri operator looking to pull back to a more local footprint in the state. The six facilities are located in central and western Missouri and total 470 beds. Operations varied across the locations, but the portfolio was generally not profitable. Average occupancy was around 60%, but one location was just 30% occupied. The facilities were built in the 1970s and 1980s, and all were substantially renovated over the years. However, some cosmetic upgrades could be needed in some cases. As was also the case at many properties in the last several years, the pandemic delayed... Read More »
Sherman & Roylance Facilitate California Bankruptcy Sale
Shep Roylance and John Sherman of Sherman & Roylance recently handled the bankruptcy sale of a 121-bed skilled nursing facility in Hayward, California. The facility operated well, with 91% occupancy and a 10% operating margin on $19.06 million of revenues. However, on August 23, 2022, the California Superior Court in Alameda County entered a final judgment in favor of 10 current or former residents of the facility totaling approximately $14 million in damages, attorneys’ fees and costs. The owner, Mariner Health Central, Inc., strongly disagreed with the judgment and appealed the decision, but it filed for Chapter 11 bankruptcy protection to maintain uninterrupted care at the... Read More »
Berkadia Handles Brentwood Deal
Berkadia sold Brighton Gardens of Brentwood, a 113-unit assisted living/memory care community in Brentwood, Tennessee. Managing Directors Cody Tremper and Mike Garbers led the transaction on behalf of the seller, Indianapolis-based Prime Care One, LLC. The buyer was a joint venture of two investor groups. Brighton Gardens of Brentwood was built in 1997 and was approximately 91% occupied at the time of the sale. No other details were disclosed. Read More »
Two Midwest Seniors Housing Sales from SLIB
The team at Senior Living Investment Brokerage kicked off the third quarter with the sale of two seniors housing communities in the Midwest. Ryan Saul first sold a 73-unit assisted living/memory care community in Chillicothe, Illinois, for $8.2 million, or $112,300 per unit. The asset was part of a larger portfolio of skilled nursing facilities that was for sale, but the Illinois-based buyer of the portfolio elected to sell this community because they did not specialize in assisted living. Built in 2015, the community was 81% occupied and operated at a 17% margin on approximately $3.68 million of revenues. The buyer was a Midwest-based owner that had actually built the campus in 2015... Read More »
The Vitality Living Nashville Portfolio Sells
CBRE arranged acquisition financing for The Vitality Living Nashville Portfolio, featuring two assisted living communities in Tennessee. The buyer was a joint venture between Winterpast Capital Partners, Scribner Capital and its institutional partner, and Broadview Real Estate Partners. Aron Will, Tim Root and Michael Cregan of CBRE National Senior Housing arranged the financing. Vitality Living, Winterpast’s wholly-owned operating platform, will operate the communities under a third-party management agreement. Located within two high-growth suburbs of Nashville, Vitality Living Franklin and Vitality Living Hendersonville offer a combined 256 assisted living and memory care units. CBRE... Read More »
Meridian Capital Group Announces June Financing Activity
Meridian Capital Group’s Senior Housing and Healthcare team closed more than $245 million in transaction volume in June for a combination of 15 facilities in six states. These transactions were negotiated by Meridian’s Senior Housing and Healthcare Platform, led by Ari Adlerstein and Josh Simpson. The team’s recent closings include a $105 million loan from a commercial bank to refinance 11 facilities comprised of 1,003 skilled nursing beds and 185 assisted living units in California, Colorado, and Iowa, and a $33.9 million loan from a commercial bank along with a $2.5 million A/R line to refinance two skilled nursing facilities totaling 280 beds in North Carolina. The latter transaction... Read More »
CFG Arranges Acquisition Mezzanine Financing
Capital Funding Group closed $8.8 million in mezzanine financing for the acquisition of a 240-bed skilled nursing facility in Brooklyn, New York. The mezzanine debt was provided by CFG in a total financing package of $60.8 million. The other funds were secured through a syndication effort with a bank that CFG has partnered with in the past. Capital Funding Group Managing Director, Real Estate Finance Craig Casagrande and Vice President Andrew Jones originated the transaction for the company. Read More »
Sonida Senior Living Gets New Life
It is well known that the recovery from the pandemic is taking longer than many had expected, and that after the initial surge in occupancies starting in the second quarter of 2021 the rate of growth has slowed, even with the recent suppression of new construction and openings. All of this is impacting the capital markets, especially as interest rates keep rising. We have repeatedly stated that the industry needs to fix its capital structure. The logjam of borrowers and creditors fighting and not coming to terms that are workable for both sides needs to burst. TPG Capital and Sabra Health Care REIT could not come to any agreement with Fannie Mae over $485 million in debt on their Enlivant... Read More »
60 Seconds with Swett: Q2:23 M&A Activity Rebounds Above 100 Transactions
The M&A market rebounded, sort of, in the second quarter of 2023, rising to 110 publicly announced transactions, compared with 99 in the first quarter. Considering the economic shock of fast-rising interest rates, and how many deals died in all stages of the transaction pipeline last fall, the volume was actually impressive. Most of the dealmakers we talk to say that their pipelines are healthy, albeit moving slower and with more difficulty than before. We are still way down from the 147 transactions recorded in the second quarter of 2022, which annualized would have resulted in nearly 600 deals for the year. But a lot has changed in a year, clearly. We are missing the larger... Read More »Schedule a demo
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