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 1983. 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 »
JLL Refinances California Active Adult Community
JLL Capital Markets closed the refinancing of a 172-unit, garden-style active adult community in Chatsworth, California. The borrower was Universe Holdings, and they received $30.315 million in fixed-rate funds through Freddie Mac for 10 years. Nantucket Creek was built just over 35 years ago and has one- and two-bedroom units ranging in size from 623 feet to 1,100 feet. The community has a clubhouse, fitness center and many other amenities, and at closing the occupancy was about 97%. That strong census may be why a 35-year-old building was able to get financing for $176,000 per unit. The JLL team representing the borrower included Charles Halladay, Jonah Aelyon and Elie... Read More »
Ventas SHOP Poised for Growth
Ventas is one of the largest owners of seniors housing communities, so it is a REIT always worthwhile to watch. It owns 544 communities with 61,794 units in its SHOP portfolio, plus another 267 communities with 20,149 units that it owns and leases to operators. We usually focus on the larger SHOP portfolio, mostly because there is much more detailed information on it. And this portfolio includes both the 463 U.S. communities and the 81 in Canada. This is important because the Canadian portfolio has a much higher average occupancy rate, 93.2% compared with 77.6% in the U.S., even though the U.S. is seeing more significant improvements. But how do you really improve on 93.2%? The... Read More »
Brookdale Improves, But More Is Needed
As you know, we never expect much in the first quarter for seniors housing operators, because historically it is always the toughest quarter from a census perspective. And Brookdale Senior Living is like an aircraft carrier: it is so big that it can take forever to change direction, and mishaps can take even longer to correct across their industry-leading 678 communities. Their first quarter results showed some progress, but also showed that they have a long road ahead to increase census and control labor costs. Digging out from weighted average occupancy of 69.4% in the first two months of 2021 is no easy task. And Brookdale should have a target of at least 85% across the portfolio, at a... Read More »Schedule a demo
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