Two Midwest Seniors Housing Sales from SLIB
The team at Senior Living Investment Brokerage kicked off the third quarter with the sale of two seniors housing communities in the Midwest. Ryan Saul first sold a 73-unit assisted living/memory care community in Chillicothe, Illinois, for $8.2 million, or $112,300 per unit. The asset was part of a larger portfolio of skilled nursing facilities that was for sale, but the Illinois-based buyer of the portfolio elected to sell this community because they did not specialize in assisted living. Built in 2015, the community was 81% occupied and operated at a 17% margin on approximately $3.68 million of revenues. The buyer was a Midwest-based owner that had actually built the campus in 2015... Read More »
The Vitality Living Nashville Portfolio Sells
CBRE arranged acquisition financing for The Vitality Living Nashville Portfolio, featuring two assisted living communities in Tennessee. The buyer was a joint venture between Winterpast Capital Partners, Scribner Capital and its institutional partner, and Broadview Real Estate Partners. Aron Will, Tim Root and Michael Cregan of CBRE National Senior Housing arranged the financing. Vitality Living, Winterpast’s wholly-owned operating platform, will operate the communities under a third-party management agreement. Located within two high-growth suburbs of Nashville, Vitality Living Franklin and Vitality Living Hendersonville offer a combined 256 assisted living and memory care units. CBRE... Read More »
Meridian Capital Group Announces June Financing Activity
Meridian Capital Group’s Senior Housing and Healthcare team closed more than $245 million in transaction volume in June for a combination of 15 facilities in six states. These transactions were negotiated by Meridian’s Senior Housing and Healthcare Platform, led by Ari Adlerstein and Josh Simpson. The team’s recent closings include a $105 million loan from a commercial bank to refinance 11 facilities comprised of 1,003 skilled nursing beds and 185 assisted living units in California, Colorado, and Iowa, and a $33.9 million loan from a commercial bank along with a $2.5 million A/R line to refinance two skilled nursing facilities totaling 280 beds in North Carolina. The latter transaction... Read More »
CFG Arranges Acquisition Mezzanine Financing
Capital Funding Group closed $8.8 million in mezzanine financing for the acquisition of a 240-bed skilled nursing facility in Brooklyn, New York. The mezzanine debt was provided by CFG in a total financing package of $60.8 million. The other funds were secured through a syndication effort with a bank that CFG has partnered with in the past. Capital Funding Group Managing Director, Real Estate Finance Craig Casagrande and Vice President Andrew Jones originated the transaction for the company. Read More »
Sonida Senior Living Gets New Life
It is well known that the recovery from the pandemic is taking longer than many had expected, and that after the initial surge in occupancies starting in the second quarter of 2021 the rate of growth has slowed, even with the recent suppression of new construction and openings. All of this is impacting the capital markets, especially as interest rates keep rising. We have repeatedly stated that the industry needs to fix its capital structure. The logjam of borrowers and creditors fighting and not coming to terms that are workable for both sides needs to burst. TPG Capital and Sabra Health Care REIT could not come to any agreement with Fannie Mae over $485 million in debt on their Enlivant... Read More »
60 Seconds with Swett: Q2:23 M&A Activity Rebounds Above 100 Transactions
The M&A market rebounded, sort of, in the second quarter of 2023, rising to 110 publicly announced transactions, compared with 99 in the first quarter. Considering the economic shock of fast-rising interest rates, and how many deals died in all stages of the transaction pipeline last fall, the volume was actually impressive. Most of the dealmakers we talk to say that their pipelines are healthy, albeit moving slower and with more difficulty than before. We are still way down from the 147 transactions recorded in the second quarter of 2022, which annualized would have resulted in nearly 600 deals for the year. But a lot has changed in a year, clearly. We are missing the larger... Read More »
Development Has Slowed, But Not Stopped
Ziegler just closed a $25.34 million financing for a new seniors housing community in San Antonio, Texas, but these funds do not include the cost of construction. The new money will be used to purchase 27 acres in San Antonio, pay for the preconstruction development costs, and the costs of issuing the new debt. The community, to be called Bella Vida at La Cantera, will consist of 153 independent living apartments, 40 IL cottages and 16 memory support assisted living units. This pre-construction debt comes to about $121,000 per unit. There was no breakdown of the three uses of the proceeds. The sponsor is the not-for-profit Forefront Living San Antonio. Brandon Powell, Managing... Read More »
Berkadia Finances Idaho Assisted Living Acquisition
Berkadia arranged acquisition financing for two assisted living/memory care communities in Idaho. Managing Director Jay Healy and Associate Director Andrew Lanzaro secured the $7.8 million bridge-to-HUD loan with an interest-only term of 18 months and a six-month extension option. The communities were built between 1996 and 1999 and contain an average Medicaid census of 75%. Combined occupancy had declined slightly in 2021 but rebounded to the mid-90% range by the end of 2022. The communities also benefited from a change to Idaho Medicaid reimbursements on July 1, 2022, resulting in a revenue boost of about $40,000 per building per month. The California-based buyer owns 18 seniors housing... Read More »Diversified Healthcare Trust Saga Continues
While trying to fight off one major shareholder who thought management was selling out Diversified Healthcare Trust (DHC) shareholders with their merger into Office Properties Income Trust (OPI) at a low value, they are now dealing with a technical default on the REIT’s $450 million credit facility. The credit facility requires the value of the collateral to be at least $1.09 billion for the 61 medical office buildings and life science properties. The reappraised value came to just $1.05 billion, a 22% plunge from the $1.34 billion value when last appraised in January 2021. A 4% drop below the value threshold, or just $40 million, should not be worth getting your knickers in a knot over in... Read More »
Flashback Friday: The SNF Market, 10 Years Ago
Every now and then, we like to look back at what the senior care industry was dealing with in past decades, which helps give us perspective on the problems of today and shows us lessons that are never learned by some. Looking at the market for skilled nursing facilities 10 years ago, we see a lot of similarities, from the high investor interest amid threats of reimbursement cuts and staffing issues (sound familiar?) to allegations of inappropriate use of Medicaid and Medicare funds by providers. Check out this lead story from the June 2013 issue of The SeniorCare Investor, and you’ll almost wonder if you were reading the June 2023 issue. From “The Skilled Nursing Market Enigma” in... Read More »Schedule a demo
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