CIBC Finances Texas SNFs
CIBC Bank USA recently closed on a $1.5 million revolving line of credit that provides working capital to support three recently acquired skilled nursing facilities in Texas totaling 316 beds. The seller was local and looking to divest some of their skilled nursing assets. The facilities performed with good operating margins despite census being between 55-60% throughout 2020 and 2021. The buyer identified a significant opportunity to improve operations and quality of the homes, with a focus on increasing census while maintaining healthy margins. Read More »Two Years After The Start
It has now been two years since the official start of the declared pandemic, and the entire seniors housing and care industry has been rising from the bottom of last March. But what now? It seems that from a census perspective we have clawed back up to 50% of what was lost, but the pace of census expansion has slowed. The labor shortages are causing some providers to put their own hold on new admissions, and the ever-increasing labor costs are putting a permanent dent into operating margins. All of this is happening at a time when the industry really needs to prepare for the aging baby boomers, and not worry about how it is going to provide the needed staffing. Next Thursday, March... Read More »NHI and Welltower Agree to Memorandum of Understanding
Following a late-February announcement that they would work out a settlement to their rent dispute, National Health Investors and Welltower announced that they have entered into a memorandum of understanding on the matter. The MOU stipulates that: NHI and Welltower wish to transition the 16 legacy Holiday Retirement properties to new tenants and that Welltower will use commercially reasonable efforts to complete this by April 1, 2022.NHI desires to sell one legacy Holiday property and that Welltower will use commercially reasonable efforts to facilitate the sale’s closing.Welltower will pay NHI approximately $6.9 million, to be held in escrow until the execution of the final settlement... Read More »Monarch Advisors Finances Assisted Living Addition
An assisted living community in Salinas, California is more than tripling its size with financing in hand from a national SBA lender. Alec Blanc of Monarch Advisors arranged a multi-stage lending strategy for the owner, Songbird Care Homes, and sourced the debt. The $4.6 million senior loan comes with a term of 25 years and a rate of Prime plus 1.0%, with an option to convert to a fixed rate equal to Prime plus 1.2% upon completion of the addition. Originally built in 1952, but renovated and converted to assisted living in 2017, the existing six-unit/12-bed community will see 28 new beds in 14 units added thanks to the funding. Occupancy was 92%. Read More »Helios Arranges Sale in Massachusetts
A family-run organization is getting out of the skilled nursing business (along with many other mom & pops across the country) and sold its 63-bed facility in northwest Massachusetts. Built in the mid-1960s, the facility was also operated by the seller but recently experienced a census decline from the mid-80s to the high-60s. That is because the Massachusetts Department of Public Health recently proposed and implemented a removal of all three- and four-bed wards at SNFs in the state. The industry has been moving past wards for a while now, but some operators of older, mostly Medicaid facilities rely on them to fill beds and cover their overhead costs. With Medicaid reimbursement rates... Read More »Northbridge Refinances Massachusetts Community
Greystone has provided a $24.8 million Freddie Mac Optigo loan to refinance Laurentide at Mashpee Commons in Mashpee, Massachusetts, minutes from the Cape Cod shoreline. The Freddie Mac fixed-rate, non-recourse financing carries a 10-year term and a 30-year amortization. Managing director Shailini Nehra handled the transaction on behalf of owner Northbridge Companies. Ten percent of the units at the 2018-built, 70-unit senior housing community have been designated affordable by the Cape Cod Housing Authority. With independent living, assisted living and memory care services, the senior housing community features studio, one- and two–bedroom residential units. Amenities include a full... Read More »Ray Stone Adds To California Portfolio
CBRE National Senior Housing’s Aron Will, Austin Sacco and Adam Mincberg partnered with CBRE Sacramento’s Kevin Randles to arrange acquisition financing for Arbor Senior Living on behalf of Ray Stone, Inc. (RSI). The two-story, 76,000 square foot Lodi, California community was opened in 1986 and is sited on a three acre lot, comprising 96 independent living units. It has been a high-performing asset in the past and has consistently produced meaningful cash-flow and maintained high occupancy levels. CBRE originated a $8.4 million fixed-rate loan through its Freddie Mac OPTIGO lending program. Post-closing, Sacramento-based RSI will operate the community. They also operate several other... Read More »
Tryko Partners Makes Moves in Maryland
Real estate investment firm Tryko Partners added to its portfolio in Maryland with the acquisition of Brighton Gardens of Tuckerman Lane in Rockville and Sunrise of Carroll in Westminster. The purchase price was not disclosed, but Tryko has a significant capital improvement project planned for both properties. Both properties will also be rebranded and renamed. Built in 1998, Brighton Gardens of Tuckerman Lane is a 140-bed assisted living/skilled nursing facility – with the two components renamed The Terraces at Tuckerman Lane and Tuckerman Rehabilitation & Healthcare Center, respectively. Tryko plans to add a secure memory care unit. Opened in 1999, Sunrise of Carroll features... Read More »
Ziegler Arranges Bond Financings For Two CCRCs
Ziegler has announced a couple of bond financings for senior care clients. First, the firm arranged $58.4 million in bonds for Capital Manor, a not-for-profit CCRC in Salem, Oregon. Operated by Life Care Services since 2010, Capital Manor features 302 independent living units and 83 assisted living beds with an additional 34 memory care beds. Its new financing will refund bonds from 2012 and fund a renovation project that will include a new façade and refreshed common areas. The bonds were issued through the Hospital Facility Authority of the City of Salem, Oregon with a yield of 3.030% and a yield to maturity of 3.415% and are callable in 7 years at 103, declining to par in year 10... Read More »
Knighthead Funds Active Adult Construction
Knighthead Funding, LLC has provided The Northwind Group with a $34.5 million first mortgage construction loan for the development of an active adult community in Selden, New York. The loan was underwritten to a roughly 69% “as-complete” value, and the property is fully permitted, planned and approved. Situated on 13.84 acres, the complex will comprise 124 two-bedroom, two-bath units, including 36 affordable homes in 15 two-story residential buildings. Considering the supply/demand imbalance and the limited prospects for new construction in the area, Knighthead’s capital will help Northwood bring needed quality senior housing to a market with high barriers to entry. This is the... Read More »Schedule a demo
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