Berkadia and Live Oak Bank Close Four Bridge Loans
Berkadia Seniors Housing & Healthcare partnered with Live Oak Bank to close four bridge-to-HUD loans totaling $86 million in the first quarter of 2023. The partnership, which started in October 2022, has closed $143 million of bridge-to-HUD and GSE transactions to date, the majority of which have been structured as A/B notes with Berkadia funding the B-note. The interest-only loans typically carry terms of 24 months with rates floating over one-month term SOFR. They facilitated purchases and refinances of four assisted living/memory care communities, two skilled nursing facilities, and one independent living community, all scattered throughout the country. Managing Director Jay Healy... Read More »
LevinPro LTC Records a Small Deal Surge in April
By nearly all accounts, M&A activity has significantly slowed, as we just recorded our first sub-100-deal quarter in Q1:23 since the first quarter of 2021. However, a mini deal surge in the first two weeks of April has caught us a little off guard. In that time period, we have recorded 27 publicly announced deals, which is just one deal off of the entire month of February’s 28 transactions and a handful away from March’s 31 transactions, according to LevinPro LTC. In addition, the 27 deals have comprised approximately 70 properties. Skilled nursing deals accounted for 41% of the deals from the two-week period, but SNFs were the majority of properties sold, or 53%. Those ratios closely... Read More »
Plains Commercial Handles Two-SNF Sale
A couple of older skilled nursing facilities sold in Missouri and Arkansas after their regionally-based, not-for-profit owner decided to scale back on its operations. General Baptist Healthcare owned the two facilities. Built in the 1960s, General Baptist Nursing Home of Piggott in Piggott, Arkansas, is licensed for 105 beds. The other facility, General Baptist Nursing Home of Campbell in Campbell, Missouri, was built in the 1970s with 90 licensed beds. Occupancy had suffered in the buildings through the pandemic and was beginning to slowly climb in the facilities, currently standing at 33% at Piggott and 67% at Campbell. Emerging through multiple other bids, the ultimate buyer was a... Read More »
Publicly Traded REIT Divests AL Community in Florida
An assisted living community in northeastern Florida found a new owner with the help of Bradley Clousing and Daniel Geraghty of Senior Living Investment Brokerage. Built in 2004 in the town of Merritt Island, the community has 70 units, with kitchenettes in each apartment. Its publicly traded REIT owner decided to divest the asset to a regional owner/operator based in Florida. The new owner plans to renovate the community and make significant upgrades to improve occupancy, revenues and overall bottom line performance. No purchase price was disclosed. Read More »
High-Quality SNF Portfolio Sells in Mid-Atlantic
We previously reported on the sale of a skilled nursing portfolio in the Mid-Atlantic when Walker & Dunlop announced its Q1:23 activity, but after speaking to people familiar with the marketed portfolio, we have more details to disclose. Located in the Mid-Atlantic region, the portfolio consists of five skilled nursing facilities and nearly 770 beds, with four of the properties clustered around one major MSA. These were older facilities, built from the 1960s to the 1980s, but were well maintained and showed well. The quality assets were also managed by a strong outgoing operator. As such, operations were strong, and the portfolio boasts a high Medicare census above 20% plus an... Read More »
Blueprint Handles Two Skilled Nursing Portfolio Deals
Blueprint Healthcare Real Estate Advisors announced its involvement in a couple of skilled nursing sales involving a total of nine properties. The larger deal featured seven facilities in the state of Texas, which after a competitive bidding process sold to a regional owner/operator with an extensive operating footprint in the state and an upcoming 1031 exchange event. Geographically clustered in central and east Texas, the facilities were built in 1969, on average, and had a total of 564 beds. Before the pandemic, they boasted a strong operation with consolidated total revenues and EBITDAR inclusive of QIPP income exceeding $20.7 million and $2.5 million, respectively, in 2019. In... Read More »
Evans Sells SNF in the Land of Enchantment
A West Coast-based group entered the state of New Mexico with the acquisition of a 101-bed skilled nursing facility in the rural northwestern part of the state. Despite its rural location, the facility had a strong operation, with occupancy improving from 83% during the marketing process to 95% upon closing. In addition, a strong Medicaid rate increase implemented in July 2022 helped boost cash flow. Evans Senior Investments represented the seller, a Southwest regional operator, in the transaction. Showing off the potential for expense savings, Evans sold the asset for $16.5 million, or $163,400 per bed. Read More »
Bourne Financial Group Acquires Two Senior Living Communities
Bourne Financial Group acquired a pair of senior living communities in Santa Monica, California, for $13 million, or $265,300 per unit. Bella Mar and Ocean Villa were originally developed as hotels in the 1950s but converted to senior living in the 1970s. In addition, the properties were both renovated in 2014. Bella Mar has 20 units of memory care, and Ocean Villa has 29 units of assisted living. Occupancy was around 60% across the communities. Revenues reached $3.2 million, but the pair operated around breakeven. H2C represented the seller, Meridian Senior Living, in the transaction. Read More »
300 Seconds with Steve Monroe: Silverado, COVID and Lawsuits
I have been uncharacteristically quiet about the news last month from the People’s Republic of California, or should I say, from Comrade DA George Gascon of Los Angeles. No more. I am referring, of course, to the criminal charges against Silverado, its CEO Loren Shook, Kimberly Butrum, SVP of clinical services, and Jason Russo, the administrator at the Silverado Alzheimer’s facility where there was a major COVID outbreak in early 2020. The trio faces a total of 13 felony counts of elder endangerment and five felony counts of violation causing death. The company itself also faces charges. What we know is that a retired physician flew in from New York City to Los Angeles late on March... Read More »
Brookdale: Has The Long-Awaited Turnaround Begun?
Late on April 10, Brookdale Senior Living reported its March occupancy results, and disclosed that preliminarily, the first quarter financial results looked to be better than originally forecast. The market pounced on the news that first quarter adjusted EBITDA would be “meaningfully” above previously issued guidance. Revenue was higher than expected while expenses were in line with fourth quarter expenses, meaning little inflationary cost pressures. The share price surged by more than 30%. Finally, some good news. Let’s hope this is not merely a case of under-promising and overperforming, because if the second quarter does not come in better, then what investors giveth they and taketh... Read More »Schedule a demo
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