The Portopiccolo Group Acquires Michigan SNF Portfolio
Northland Networks, a debt placement agent that finances senior living projects through a large network of community banks, arranged acquisition financing for a portfolio of three skilled nursing facilities in southeast Michigan with 250 beds. The loan represents a 65% loan-to-“as is” value. The attractive terms of the loan are indicative of community banks’ swelling cash deposits amid COVID-19 stimulus. Participating in senior living loans is an attractive option for many of these banks who have had minimal exposure to this asset class in the past, as such loans offer strong yields and diversification benefits. The Portopiccolo Group, a family-owned investment management firm, acquired... Read More »
Blueprint Arranges Another Ohio Deal
A few weeks after arranging the sale of 17 skilled nursing facilities in Ohio, the Blueprint Healthcare Real Estate Advisors team of Connor Doherty and Ryan Kelly sold a SNF in the Dayton, Ohio MSA. Called Good Shepherd Village, the facility was built in the 1960s and thoroughly renovated in the 1990s. Operations were sold, but ownership decided to exit the industry while taking advantage of the seller’s market in skilled nursing. For context, the numerous buyers chasing relatively few facilities on the market led the average price per bed to rise to a near-record of $98,000 per bed in 2021, according to our recently published 27th Edition of The Senior Care Acquisition Report. That price... Read More »
VIUM Provides Capital For Midwestern SNFs
VIUM Capital has been busy lately, recently arranging two refinances and one acquisition loan. First, the company arranged a refinance for a skilled nursing facility with a $9.5 million HUD loan, providing non-recourse, low-interest, long-term debt. Back in 2020, the company closed a bridge loan for the portfolio acquisition of this property and four other skilled nursing facilities in Indiana, and the remaining facilities are set to follow into HUD shortly. VIUM also refinanced a portfolio of four skilled nursing and assisted living properties in northeast Ohio. The new HUD loan totaling $55.75 million refinances 1st, 2nd, and 3rd FHA mortgages through the a7 program exclusively for... Read More »
Healthcare Trust Expands Partnership with Senior Lifestyle and Jaybird
Healthcare Trust, Inc. (HTI), a public, non-traded real estate investment trust, announced the expansion of a strategic operational relationship with two senior housing operators, Senior Lifestyle Corporation and Jaybird Senior Living. Thirteen HTI-owned communities operated under HTI’s Addington Place brand across Georgia, Michigan and Florida will now be managed by Senior Lifestyle, bringing the total number of HTI properties operated by the company to 24. In addition, seven HTI-owned properties in Illinois, Kansas and Missouri, also operated under the Addington Place brand, will now be managed by Jaybird Senior Living. This expanded relationship brings the total number of HTI-owned... Read More »
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 »Schedule a demo
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