Newmark Announces Several High-Quality Community Sales
The team at Newmark certainly demonstrated variety with its productivity in the first four months of the year in seniors housing and care transactions. The team closed eight sales, four refinances, three acquisition loans and three construction loans for a host of clients across the country. And from what we hear, there are another $550 million to $600 million in active adult sales alone set to close in the next two months. So, the momentum is building for another great year. To the sales, a couple of deals involved very high-quality properties that sold way above the average per-unit price for seniors housing sales. Most recently, that was the sale of Danberry at Inverness, a senior... Read More »
CIBC Finances SNF Portfolio Takeover
A large Midwest-based operator purchased a portfolio of 12 skilled nursing facilities and 970 beds in Pennsylvania (11) and Delaware from its landlord, a private equity firm that has been divesting. The buyer assumed HUD debt, and CIBC Bank USA financed a $73 million acquisition loan to help cover the $140.5 million, or $144,800 per bed, purchase price. Operating performance across the portfolio has been trending favorably, and the buyer will continue to utilize its economies of scale and knowledge of the market to boost census and enhance cash flow. It helps that they had been operating the buildings for at least four years prior to this acquisition, so they can hit the ground running as... Read More »
Newmark Arranges Numerous Bank Financings
After a successful start to the year for M&A, Newmark was quite prolific on the financing front as well. The team arranged $53 million in acquisition debt from Regions Bank for The Carlyle Group’s December 2021 purchase of The Solea Portfolio. Totaling 463 active adult units, the three communities are located in San Antonio, Katy and Houston, Texas, respectively. They were previously owned by a joint venture between Entrepreneurial Properties Corporation and Sparrow Partners. Next, Newmark arranged four bank refinances on behalf of Caddis Partners for four of its “Heartis” communities. Comerica Bank provided a $20.8 million loan for the 106-unit Heartis North Shore in Wisconsin and a... Read More »
Ziegler Finances Richmond Campus Expansion
Three years ago, Westminster Canterbury Richmond announced plans for a Vibrancy! Project at their 809-unit life plan community located in Richmond, Virginia. Currently, the community has 487 independent living units, 164 assisted living units and 158 nursing units. We assume occupancy is pretty good because they will be adding an additional118 IL units. It originally opened in 1975 as one of the first LPC’s in Virginia and has become of the largest not-for-profit single-site communities in the country. There are two parts to the expansion. In what will be known as the Vitality Tower, 42 new IL units will be built atop a new fitness and wellness center. This center will attach... Read More »
NewPoint’s Next New Hires
In the midst of a spate of hiring, NewPoint Real Estate Capital announced that Sean Huntsman is joining the firm as Senior Managing Director, Seniors Housing Originations and Katherine Stewart as Managing Director and lead for NewPoint’s Seniors Housing Agency Platform. The new hires expand NewPoint’s Seniors Housing & Healthcare lending platform, after NewPoint acquired Housing & Healthcare Finance in December 2021. Specifically, the team plans to expand into the Fannie Mae and Freddie Mac seniors housing space in addition to originating proprietary bridge loans for independent and assisted living properties. Mr. Huntsman and Ms. Stewart will be based in NewPoint’s new Southern... Read More »
Welltower Posts Good Quarter
Everyone tries to put a good face on their performance, whether it has been average or well above average. But Shankh Mitra, CEO of Welltower, was practically exuberant on the REIT’s recent performance and its future growth and prospects. It certainly helped that same-community NOI in its SHOP portfolio grew by 18.4% year over year. Half of that growth came in the second quarter 2021, but the other half (9.7%) came in the first quarter this year. Increasing census and the ability to now charge higher rates really drove the increases. Welltower’s seniors housing operated portfolio (SHOP) census beat the first quarter blues as many others have, with the U.S. portfolio posting a... Read More »
60 Seconds with Swett: Best Senior Living List Is Revealed
U.S. News & World Report came out with its first ever “Best Senior Living” list on Tuesday, creating new designations of Best Independent Living, Assisted Living, Memory Care and CCRCs. U.S. News and its survey provider, Dr. Jacquelyn Kung’s Activated Insights, administered satisfaction surveys at 3,045 communities throughout the country between March 2021 and February 2022, evaluating four basic categories: community & activity, food & dining, caregiving, and management & staff. Also, family responses were taken into account for assisted living scores, and memory care community scores were derived solely from family surveys. Residents tended to respond more positively than... Read More »
Former Mainstreet Facility Getting New Life
The former Mainstreet “transitional care” facilities that were developed with much fanfare continue to sell as vacant (but beautiful) assets. Amy Sitzman and Giancarlo Riso of Blueprint Healthcare Real Estate Advisors just sold another one in Temple, Texas to a buyer with alternative plans for the property. Built in 2019 with 70 private units, the facility never operated, so that made an easier conversion project. The high-quality building featured plenty of common area and modern finishes. A competitive market process saw Blueprint identify an experienced Texas-based real estate investor as the buyer who structured a lease with a national healthcare system based in Southern California to... Read More »
CFG Closes Bridge Loan for Arizona Acquisition
Capital Funding Group announced the closing of $17.2 million in bridge debt for the acquisition of two skilled nursing facilities in Arizona. The experienced borrower previously operated these facilities, and through this transaction they were able to purchase the real estate at a pre-negotiated price that was set when they originally took over operations. Totaling 232 beds, the facilities were built in 1982 and 1982. Capital Funding Group Vice President Tommy Dillon originated the transaction, which covered 100% of the costs due to the current market value of the facilities surpassing the agreed-upon purchase price. The deal follows an impressive first quarter with over $840 million in... Read More »