Ventas SHOP Improves
Ventas (NYSE: VTR) is the latest REIT to report second quarter earnings, and while performance is improving, it is not improving fast enough for some investors. Its seniors housing portfolio, while still showing improvements, lagged behind Welltower’s, and investors sent the shares down by 6.5% in early trading. Total seniors housing occupancy in its SHOP portfolio of 568 communities decreased by 30 basis points in the quarter, year over year, and declined by 20 basis points sequentially. On a same-community basis, occupancy increased by a small 10 basis points year over year, but declined by 20 basis points sequentially. Yes, the first and second quarters are usually not good for... Read More »
Newmark Closes a Cap Rate Deal in Texas
There was a cap rate deal in Texas at the start of August, a relative rarity in today’s market. Newmark closed the sale of Heartis San Antonio, a 109-unit assisted living/memory care community in San Antonio, Texas, to an undisclosed buyer. The community was developed by Caddis Partners, the seller, in 2016 and had been a strong performer ever since opening, even through the pandemic. It was nearly full at the time of the sale, with a healthy operating margin. With so few performing properties available for sale these days, interest from buyers was strong, and we understood pricing reached the mid-$30 million range. The community also sold at a cap rate in the high-6s, a very good... Read More »
Omega’s Q2:23 Results
Omega Healthcare Investors reported second quarter results on August 2 and announced a host of new investments totaling $270 million. In total, the company completed $129 million in real estate acquisitions, invested $124 million in real estate loans and other loans and investments and funded $17 million in capital renovation and construction-in-progress projects. Regarding Omega’s real estate acquisitions, the largest was Omega’s purchase of four skilled nursing facilities located in West Virginia for $114.8 million. The company leased the SNFs to an existing operator, and the facilities were added to that operator’s master lease with an initial annual cash yield of 9.5%, with 2.5% annual... Read More »
Berkadia’s Latest Two Refinances
Berkadia refinanced a couple of senior care facilities, including a large HUD financing for a 320-bed skilled nursing facility in New York City. Owned by a Northeast-based operator, the facility serves downtown Brooklyn and maintained strong occupancy, even during the pandemic. Census also grew throughout 2023, surpassing 90% at the time of the closing with a 20% Medicare mix. To pay off existing commercial bank debt as well as transaction costs, Berkadia’s Ed Williams and Richard Price secured a $62.1 million million HUD loan on behalf of the client. The 80% loan-to-value financing included a term of 35 years. Next, Jay Healy and Andrew Lanzaro arranged a $14.4 million bridge loan... Read More »
60 Seconds with Monroe: Ode to Stew
An ode to an industry veteran on his 60th birthday. Read More »
SLIB Sells a Memory Care Community
Senior Living Investment Brokerage was brought on to sell a memory care community in Oregon. The team included Jason Punzel, Brad Goodsell and Vince Viverito. Built in 2010 with an addition in 2013, the 30-unit/40-bed community is located in Portland, Oregon, on two acres of land with 16,300 square feet. The seller was a REIT that chose to divest its non-core, smaller assets. The buyer was a local owner/operator that plans to make capital improvement and focus on improving occupancy as well as operations. No other details were disclosed. Read More »
Meridian Capital Group Announces July Activity
Meridian Capital Group’s Senior Housing and Healthcare Platform, led by Ari Adlerstein and Josh Simpson, closed more than $520 million in transaction volume in July 2023. Their recent closings include a $175 million credit facility on behalf of a New York-based home health platform, which was provided by a nine-bank syndicate. Meridian’s Indrajit Pal and Matt Lesnik negotiated this transaction along with Adlerstein and Simpson. Additionally, the team sold nine skilled nursing facilities comprising 718 beds in the Midwest and arranged $66.6 million in financing from a commercial bank along with a $10 million A/R line for the acquisition. The team also arranged a $49 million HUD refinance... Read More »
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 »Schedule a demo
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