Blueprint Teams Close Two Transactions
M&A continues at a steady clip, and Blueprint Healthcare Real Estate Advisors obliged with a couple of recent closings. First was the sale of a skilled nursing facility located just outside of Cleveland, Ohio. Totaling 120 beds, the facility was built in the 1960s and thoroughly renovated in the 1990s. Historically, it did bring in stable cash flow, and it showed well for a facility last fully renovated more than 20 years ago. However, it did not fit into the regional Ohio-based owner’s operating model. That’s where Blueprint came in, approaching a New York-based private equity group that has an existing presence in Ohio. They saw an opportunity to add value... Read More »
New York Times Hits SNFs, Again
The New York Times hit one of its favorite punching bags again with an article titled “Phony Diagnoses Hide High Rates of Drugging at Nursing Homes.” In it, the Times alleges that a loophole not requiring nursing homes to report antipsychotic prescriptions for three uncommon conditions, including schizophrenia, has led doctors associated with the facilities to false diagnose schizophrenia in patients with dementia. Since these patients require much more time and attention from an already overworked and underpaid staff, the Times reasons that SNFs would rather drug them than provide real dementia care. Some of the stats seemed damning. An analysis of Medicare data showed that schizophrenia... Read More »
New Proposal for Capital Senior Living
As we get closer to the voting date for shareholders to approve of the recapitalization proposal of Capital Senior Living by Conversant Capital, with the full support of Cap Senior’s management and board, at long last an alternative plan has been put forward. We didn’t think that Ortelius Advisors had much of a leg to stand on in their proxy fight without any alternative for shareholders to consider. Now we have one, as loosey-goosey as it may be. Ortelius has proposed a new equity rights offering, which they will backstop and subscribe to well beyond their current pro rata holdings of about 12.7%. They believe that raising up to $70 million of new... Read More »
Capital Funding Group Closes Loan For SNF Portfolio
Capital Funding Group’s standout year continues with another large term loan closed for a 29-asset skilled nursing portfolio. Located in Colorado, California and Wyoming, the properties include 28 skilled nursing facilities and one SNF with assisted living units as well, all totaling 3,410 beds. Capital Funding Group worked on behalf of the owner, a private real estate investment group, to close a $262.6 million term loan that refinanced the portfolio. In addition, CFG underwrote the transaction of operations from SavaSeniorCare to four new regional operators. Erik Howard and Director Tim Eberhardt originated the transaction. This brings CFG’s bridge-to-HUD loan closings to $2.3 billion... Read More »
SLIB Facilitates SNF Closing in Florida
A few months after selling a an 87-unit assisted living community in Lakeland, Florida, Brad Clousing and Daniel Geraghty of Senior Living Investment Brokerage returned to the campus to represent the same buyer of the adjacent skilled nursing facility. The buildings are actually only separated by a set of fire-rated doors. The campus, which previously had two different real estate owners and two different operators, will now be owned by one company, Mainstay Senior Living. The skilled nursing facility has 120 beds and was delicensed by the state in 2017. However, with the onset of the pandemic, the facility was allowed to reopen in early 2020 to accommodate... Read More »
H2C Secures Loan For Florida SNF Acquisition
Matthew Tarpley and Mitch Levine of H2C Securities, Inc. (or Hammond Hanlon Camp) has secured an $8.25 million loan for Mainstay Senior Living to acquire a 120-bed skilled nursing facility in Lakeland, Florida. The one-year, interest-only loan came with a rate of 4.125%. Built in the 1990s, the facility was delicensed by the state in 2017 but was allowed to reopen in early 2020 to accommodate COVID-19 residents. The operator received a new license to operate, however, its publicly-traded REIT owner (revealed to be Omega Healthcare Investors based on a web search) decided to sell, since the asset was nearly vacant once the initial COVID wave subsided. The facility is located adjacent to an... Read More »
National Church Residences Adds to Georgia Portfolio
National Church Residences, a not-for-profit organization that serves more than 42,000 seniors through an array of housing and healthcare services, acquired an affordable senior housing apartment building in southeast Georgia. The property, called McFadden Place, is located in Pembroke and features 30 units. It was built in 2004 and was previously owned and operated by Mercy Housing, Inc. Amenities also include a community room, recreational facilities and service coordination, which assists residents with medical needs and connects them to community services available in the area. It joins NCR’s existing network of more than 1,600 senior apartments across 13 communities... Read More »
Ziegler Picks Up Loan Activity with Two More Financings
Ziegler has picked up its loan activity for the second week in a row, closing two large bond financings in Virginia and Florida. Virginia United Methodist Homes of Williamsburg, dba WindsorMeade, a not-for-profit corporation in Williamsburg, Virginia, received the first of the series of bonds totaling $58.24 million. WindsorMeade operates a CCRC in Virginia, consisting of 181 independent living units, 14 assisted living units, 18 memory care units and 22 skilled nursing beds. WindsorMeade filed for Chapter 11 bankruptcy protection in 2013 following liquidity and occupancy challenges, but since the restructuring its overall performance has improved. The current refinancing package include... Read More »
Real Estate Developer Enters Seniors Housing Space
Harbor Custom Development, a real estate development company, closed on the purchase of approximately 2.34 acres of land in Burien, Washington, for $2.6 million. The purpose? They will now develop a 112-unit senior condo complex located less than 15 minutes from downtown Seattle. There will be studio, one- and two-bedroom options priced between $395,000 and $495,000, providing a more middle-market housing option for seniors in a market where home prices keep climbing. In King County alone, home prices rose 25% in the last year, with the median selling price of a home rising to $871,000. The community will be under the “Mira” brand of condominiums, but this represents Harbor Custom... Read More »