60 Seconds with Swett: SNFs and the State of the Union
With all that is going on in the country and abroad, it was nice for President Biden to carve out some time to talk about nursing homes in his State of the Union address last night. He said, “as Wall Street firms take over more nursing homes, quality in those homes has gone down and costs have gone up. That ends on my watch.” He was citing JAMA Health Forum’s November 2021 study linking private equity ownership of nursing homes with more hospitalizations and higher Medicare costs, but we’ve said before that study is very misleading. Mr. Biden also promised that Medicare would set higher standards for nursing homes, while also cutting costs. We’re not sure what kind of voodoo government... Read More »
CBRE Refinances For The Springs Living
CBRE National Senior Housing’s team including Aron Will, Austin Sacco and Matthew Kuronen arranged a recapitalization of four seniors housing communities in Oregon and Montana. The Springs Living owns and operates the portfolio, which includes 209 independent living, 164 assisted living and 31 memory care units. It received a non-recourse, floating-rate loan from a national bank. There was also a five-year term and 18 months of interest only. McMinnville, Oregon-based The Springs Living is a 25-year-old privately held regional developer/owner/operator with a current portfolio of 18 communities totaling over 2,500 units. There are 13 communities located in Oregon and five in Montana, with... Read More »
ESI Represents Consulate in Bankruptcy Disposition
Evans Senior Investments (ESI) represented the bankruptcy disposition of two skilled nursing facilities in Florida. The bankruptcy stemmed from a medical whistleblower whose case resulted in a civil fraud judgment of $256 million. Both nursing communities operated under the brand of Consulate Health Care and filed for bankruptcy when the skilled nursing operating entities could not afford to pay the False Claims Act judgment against them. At the time of writing, Consulate is the sixth-largest nursing home chain in the country with 138 facilities from the Mid-Atlantic to the Gulf Coast. ESI was hired to represent the debtors in the sale of their assets, in obtaining debtor-in-possession... Read More »
Five Facility Portfolio Finds New Operator in Northern California
A portfolio of five skilled nursing facilities in northern California found a new operating tenant thanks to Nick Stahler of The Knapp-Stahler Group of Marcus & Millichap. Located around the Sacramento area, the facilities feature more than 300 beds and are owned by a private family office. They were originally leased to a regional skilled nursing operator, but that operator was primarily focused on the Southern California market. Operations actually improved slightly during the pandemic due to a higher Medicare census and the three-day stay waiver. But occupancy and expenses did worsen over the last two years. At close, occupancy was 82% with a 28% quality mix. A new regional operator... Read More »
Berkadia Adds Steve Muth to Team
M&A and lending activity is on the up as investors look to re-enter or expand their presence in the market, and Berkadia is growing their team to handle what they expect will be a busy year. The company has added Managing Director Steve Muth to Berkadia Seniors Housing & Healthcare, serving on the mortgage banking platform. Mr. Muth will report to SVP, Head of FHA and Seniors Housing Finance Steve Ervin. Berkadia Seniors Housing & Healthcare closed more than $600 million in combined investment sales and financing in 2021 and ended the year as the top-ranking Freddie Mac Lender for Seniors Housing. The team’s 42 transactions encompassed a range of property types across the... Read More »
Lone Star Funds Acquires Minnesota Portfolio
Lone Star Funds picked up a portfolio of five seniors housing communities in the Minneapolis, Minnesota MSA, representing the largest-ever seniors housing portfolio deal in the state, according to our database. Developed and owned by Minnetonka-based Roers Companies, a multifamily-focused real estate company, the “A” quality communities total 567 units of independent living, assisted living and memory care. There are plenty of amenities, including golf simulators, indoor parking (a must in Minnesota) and fitness centers. They were all completed between September 2019 and April 2021, and occupancy was generally strong at the more established locations. The pandemic affected occupancy at... Read More »
Walker & Dunlop Arranges Atlanta Active Adult Acquisition
Walker & Dunlop Investment Sales arranged the sale of a class-A active adult community in the Atlanta, Georgia MSA. The W&D Seniors Housing team including Jordyn Berger and Joshua Jandris, as well as the W&D Atlanta Multifamily Team including Kris Mikkelsen, Pat Jones and Chris Goldsmith, collaborated on the transaction. Just built in 2020, Everleigh Halcyon Village features 160 units on 1.9 acres. It includes one-bedroom units with 848 square feet and two-bedroom units with 1,195 square feet. The community is integrated within the mixed-use village, Halcyon, which has over 535,000 square feet of office and retail space and over 100 single-family homes selling at between... Read More »
MBK Adds Value-Add Community to Portfolio
Last week, MBK Senior Living acquired the second property of a two-site portfolio in the Phoenix, Arizona MSA, and The Knapp-Stahler Group of Marcus & Millichap handled the deals on behalf of the seller, Texas-based McFarlin Group. Built in 2017 as the first Surpass Senior Living (McFarlin’s operating platform) in Arizona, the 83-unit assisted living community will be renamed from Mariposa Point of Gilbert to Sky Ridge. Located adjacent to an active adult community called The Aspens at Mariposa Point, it was developed at a cost of $18 million, or $217,000 per unit, with financing provided in part by Piper Jaffray & Co. The project was part of a four-property development plan for... Read More »
LTC Properties Announces Another Mezzanine Loan
LTC Properties revealed in its fourth quarter earnings call that it originated a $25 million mezzanine loan for the recapitalization of five seniors housing properties in Oregon and Montana. The transaction is a continuation of LTC’s strategy focused on higher yield structured finance investments. Coming with a term of five years and two months, with two one-year extension options, the loan bears an 8% interest rate and an IRR of 11%. The properties, which include independent living, assisted living and memory care, total 621 units and will be managed by The Springs Living, a new operator for LTC. LTC revealed a few other investments and dispositions in its earnings. So far in... Read More »
Inland Real Estate Group Buys in Minnesota
Cushman & Wakefield represented a joint venture of The Waters Senior Living, Harrison Street Real Estate Capital and North Rock Real Estate in arranging the sale of The Waters on Mayowood, a 175-unit independent living, assisted living and memory care community in Rochester, Minnesota. The property was sold earlier in February for a total of $67.3 million, or just under $385,000 per unit. Inland Real Estate Group, one of the nation’s largest real estate and finance groups, is acquiring Mayowood and will retain The Waters to manage the community. The property was originally constructed in 2015 and has performed well since opening, averaging over 96% occupancy since January 2018.... Read More »Schedule a demo
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