60 Seconds with Swett: SVB, Signature and the CPI’s Impact on Seniors Housing and Care Lending
The last week could have given many on Wall Street whiplash. The closure of Silicon Valley Bank and Signature Bank by the FDIC led to a selloff in the shares of many regional banks late last week and a panicked weekend for many more, with calls for some government intervention to bail out SVB and Signature to stop the spread of more systemic issues. The Biden administration is obliging with a sort-of bailout of both banks by making their depositors whole and hopefully stemming a depositor panic across the country’s banks. And as of Tuesday, stocks for many regional banks started to rally, albeit remaining below their levels before the sell-off. The ordeal, plus favorable CPI data released... Read More »
Blueprint Sells SavaSeniorCare SNF
Blueprint Healthcare Real Estate Advisors sold a 92-bed skilled nursing facility in Kenansville, North Carolina, to an experienced investor looking for growth opportunities for its operating partner in the Tar Heel State. Built in 1975, Kenansville Health and Rehab is located 75 miles southeast of Raleigh and adjacent to ECU Health Duplin Hospital. It had historically maintained stable census and cash flows, helped by the fact it had no direct local competition, but the facility saw census and margin decline after the pandemic. Blueprint was engaged by a longstanding ownership group, led by a distinguished Georgia-based entrepreneur and philanthropist, to effectuate the facility’s sale... Read More »
New England AL Portfolio Secures HUD Refinance
Walker & Dunlop closed a $46 million HUD refinance of Terrace Portfolio, a group of four affordable assisted living communities in Vermont and New Hampshire. Frank Cassidy led the Senior Housing Finance team in the transaction, which took out a bridge loan that the Walker & Dunlop team previously arranged in December 2020 to facilitate a partner buyout and re-leveraging of the portfolio. The bridge loan was structured as eligible debt in anticipation of the HUD takeout. The portfolio includes Wheelock Terrace, a 70-unit assisted living community located within 15 miles of two hospitals in Hanover, New Hampshire, and Windham Terrace, a 71-unit assisted living community in... Read More »
Harbert South Bay Partners Planning Orange County Community
Harbert South Bay Partners released plans for The James, a 350-unit, eight-story seniors housing community in Irvine, California (Orange County). The site is walkable to The District at Tustin Legacy, a popular shopping and restaurant area, and will feature 210 independent living, 110 assisted living and 30 memory care units. The leasing office for The James is scheduled to open early 2024, with occupancy planned for summer 2025. Momentum Senior Living, which is based in Orange County, will be the operator. At the end of 2021, Harbert Management Corporation, which has over $8 billion in assets under management across multiple asset classes, bought the majority interest in Texas-based... Read More »
Brookdale Senior Living Census Drops
As you may remember, in October 2020 we did a comprehensive study of seniors housing occupancy for the 10 years leading up to the pandemic. What we found surprised us in many ways. We used assisted living occupancy as a proxy for the entire seniors housing market, mostly because it is the largest segment, using the NIC MAP census numbers. What we found was that for the 11 years prior to the pandemic, occupancy had never increased in the first quarter of any year. In the first quarter of 2022, however, Brookdale Senior Living beat those odds by posting a 50-basis point increase in month-end occupancy after dropping 30 basis points in January. Weighted average occupancy for that quarter was... Read More »
Marquee Capital Launches Second Fund, Targeting Seniors Housing
After successfully deploying the vast majority of capital from its inaugural fund, Marquee Capital announced that it is formally launching its second real estate fund, Marcus RE Fund II, LP, that will also include seniors housing in multiple geographies as well as opportunistic real estate plays with proven sponsors. The firm seeks to raise $100 million from other family offices, high-net-worth individuals, consultants, wealth managers and institutions. Marquee Capital recently rebranded from Berengaria Development, however the firm is still closely affiliated with Marcus Investments, the Marcus’ family office. Marquee Capital noted seniors housing’s stable cash flow and extreme... Read More »
Blake Parsons Acquires Carpinteria, California Community
Blueprint Healthcare Real Estate Advisors sold GranVida Senior Living, a senior living community located in Carpinteria, California. Initially built as an office building, the community was acquired and converted to assisted living in 2017. It now consists of 55 assisted living and 15 memory care units, with 77 total beds, in a high barrier-to-entry submarket of Santa Barbara. It also benefits from being the only seniors housing community within approximately 10 miles. Plus, there is an additional 1.81 acres adjacent to the site that is available for development of a second building with 50 units and 54 beds of assisted living. Blueprint ran a competitive marketing process for an... Read More »
Bridgewood Property Company Refinances Onion Creek Community
CBRE National Senior Housing refinanced Village on the Park Onion Creek, a Class-A senior housing community located in Austin, Texas, on behalf of Bridgewood Property Company. Aron Will, Tim Root and Michael Cregan arranged the $18.24 million loan through CBRE’s Freddie Mac Optigo lending platform. The loan featured a 10-year term and floating interest rate, with five years of interest only. The community will continue to be operated by Bridgewood’s wholly-owned management platform, The Aspenwood Company. Located in the established neighborhood of Onion Creek, the 124-unit, majority-independent living campus sits on nine acres south of downtown Austin. There are single-story apartments... Read More »
Alliance Health Refinances SNF through Lument
Lument closed a $15 million HUD loan to refinance Alliance Health at West Acres, a 130-bed skilled nursing facility in Brockton, Massachusetts. Aaron Becker, head of seniors housing and healthcare production at Lument, led the transaction. The facility was substantially renovated in 2017 using bank debt with recourse, which the HUD loan effectively replaces as non-recourse permanent debt. It comes with a 35-year term and a low, fixed interest rate. Alliance Health at West Acres was originally built in 1965 and consists of one two-story building featuring 116 semi-private beds and 14 private beds. Its not-for-profit owner, Alliance Health, owns and operates seven communities consisting of... Read More »
Interview with Aaron Krawitz of Bravo Capital
The SeniorCare Investor’s Managing Editor, Ben Swett, sat down with Aaron Krawitz of Bravo Capital to discuss the current lending market, what terms borrowers can receive for their different property types, and what to expect in the months to come. Read More »Schedule a demo
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