60 Seconds with Steve Monroe: SNFs, Here We Go Again
As long as they keep making some stupid conclusions, I am going to have a say on it. I am talking about the most recent study appearing in Health Affairs blasting PE and REIT ownership for a lack of transparency and a cut in nursing hours after an acquisition. First, I do agree there should be more transparency in general since nursing homes are receiving about 90% of their revenues from the government. But once again, these researchers seem to be missing the point and simply jumping on the Elizabeth Warren and Bernie Sanders bandwagon. Or is it Joe Biden? When a REIT buys a nursing home, it has little say over the operations, but can advise the provider, especially if things go... Read More »
Newmark Sells The Preston of the Park Cities
The team at Newmark has kept a steady stream of closings coming amid the capital markets upheaval of the last month and just announced the sale of a 134-unit assisted living/memory care community in Dallas, Texas. The Preston of the Park Cities was built in 2018 in the desirable neighborhood of Park Cities. Silverstone Senior Living developed it, initially bringing in Harbor Retirement Associates to operate before switching to Watermark Retirement Communities in 2019. Occupancy never reached full stabilization before the pandemic and stood at just 75% at the time of closing. The Newmark team had some history at this property, as Ryan Maconachy, Chad Lavender and Sarah Anderson helped to... Read More »
Debt Issues Don’t Stop Portfolio Deal from Closing
The difficult debt markets didn’t stop MED Healthcare Partners from acquiring a portfolio of three assisted living/memory care communities in Georgia thanks to their use of an all-equity capital structure to finance the purchase. Located in secondary markets around an hour outside of Atlanta, Georgia, the small, 1990s-vintage communities totaled 156 units and were not stabilized at the time of closing. However, operations were improving throughout the sale process and the middle-market portfolio was well-positioned to capitalize on the strong demand for more affordable senior care within their respective local markets. Blueprint Healthcare Real Estate Advisors generated three... Read More »
CFG Closes Construction Loan for Hotel Conversion
Capital Funding Group closed a $27.2 million construction loan for the conversion of a partially-completed hotel to a 191-unit assisted living community in Sunrise, Florida. SGSL Fee Owner LLC, based in Coral Gables, Florida, originally acquired the 291-room Sawgrass Grand Hotel and Suites and the 11.6-acre site in 2019 for $15.13 million and had started converting it into a 184-unit assisted living/memory care community, thanks to a $35.8 million bond. However, UMB Bank, which was the trustee for the bond, filed a lawsuit against SGSL Fee Owner over allegations that it missed bond payments and wasn’t paying its project contractors and suppliers. A judge appointed Travis Grody of Aurora... Read More »
Invesque Inches Closer to SNF Exit
Invesque released its fourth quarter and full-year 2022 earnings, and announced that it is making progress in its refocus towards a private pay, seniors housing portfolio. During the fourth quarter and subsequent to year-end, Invesque sold or entered into a purchase and sale agreement for two medical office buildings for a combined $12.03 million. With the sales, which included Brantford Medical Center in Brantford, Ontario and MetroWest Medical Center in Orlando, Florida, Invesque exited the Canadian MOB market and has two MOBs remaining in the United States. Plus, sales of two remaining MOBs are expected to occur over the next few months. In addition, Invesque entered into a purchase and... Read More »
Carnegie Capital Secures SNF Bank Refinance
JD Stettin of Carnegie Capital closed a bank refinance for a 90-bed skilled nursing facility in north central Texas. Built in the 1980s, the facility was acquired by the borrower less than two years ago. It was occupied in the high-80s, and while cash flow was positive (with around 30% of its NOI derived from QIPP revenue), it did not cover debt service yet. So, ownership sought a bank refinance totaling $7.0 million. The loan came with an interest rate of 8% fixed for five years, and the borrower could prepay without penalty after year three. Read More »
The Mogharebi Group Closes Seniors Housing Sale
A Los Angeles-based private real estate investment group acquired a 284-unit seniors housing community in Wildomar, California, from Craig Thralls, a local developer. The Mogharebi Group represented Mr. Thralls in the transaction. An entity linked to Positive Investments was the buyer. Built in 2000, Wildomar Senior Leisure Community features 178 independent living and 108 assisted living units. It was fully occupied with a number of units reserved for low-income seniors. The sale involved two separate properties on separate parcels of land, each with their own ground leases. The Mogharebi Group worked with multiple government agencies and around several rent restrictions, and managed to... Read More »
Active Adult and Its Impact on Seniors Housing
Active adult is rapidly emerging as a major subsector within seniors housing, but what are the companies making the biggest plays, how do buyers and lenders value these properties, and what will be the impact on the other seniors housing subsectors? The SeniorCare Investor’s Managing Editor Ben Swett sat down with Mark Myers of Walker & Dunlop, Richard Hutchinson of Discovery Senior Living and Mitch Brown of Senior Housing Consulting to discuss the investment potential in this growing sector. Read More »
Joint Venture Teams Up on Orange County Development
MorningStar Senior Living, Confluent Senior Living and Concord Development Partners have completed a 166,000-square-foot senior living community in Mission Viejo, California. The 132-unit community, MorningStar of Mission Viejo, broke ground in March 2021 and actually completed ahead of schedule, which does not happen often. There are studio, one- and two-bedroom suites as well as 126 below-grade parking spaces. The property also features a pool, dog run, resident garden and al fresco dining. MorningStar of Mission Viejo represents the 14th joint venture between Denver-based Confluent Senior Living (a subsidiary of fully integrated real estate investment and development firm Confluent... Read More »
Ziegler Arranges Bank Bonds for CCRC Expansion Project
Ziegler, a national boutique investment bank, closed $76.0 million of Series 2023 bank bonds for Brazos Presbyterian Homes, Inc. (BPH) to fund an expansion of the company’s community in Austin, Texas, called Longhorn Village. In addition, the bonds refinanced a portion of the outstanding Series 2013B bonds and paid costs of issuance. The Series 2023 bonds are tax-exempt, draw-down bonds supported by a three-bank syndicate comprised of Amegy Bank, Hancock Whitney and Trustmark. Founded in 1960, BPH is a not-for-profit corporation that owns and operates three CCRCs in Texas: Brazos Towers at Bayou Manor, The Hallmark and the aforementioned Longhorn Village. The expansion project consists of... Read More »Schedule a demo
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