KeyBank Provides Financing for Three Seniors Housing Communities
National Church Residences (NCR), the nation’s largest not-for-profit seniors housing provider, has received $21.5 million through KeyBank’s David Lacki to renovate and rehabilitate three affordable senior apartment communities in Florida, Ohio, and Texas. Through NCR’s Home for Life plan, each property has an on-site social worker and offers programs and activities, light housekeeping, grocery shopping, and laundry for residents. Fair Havens Village is an 80-unit property in Sebring, Florida, consisting of 79 studios and one-bedroom units. It also includes a manager unit in three of the buildings. The project will receive a $4.5 million permanent loan from... Read More »
JLL Facilitates Seniors Housing Sale in Georgia
Private equity firm Bridge Investment Group (BIG) sold its 79-unit senior living community in Savannah, Georgia to a 1031 investor. The JLL Capital Markets investment advisory team including Mike Garbers, Cody Tremper and Michael Sivewright, represented BIG in the deal. Located on Wilmington Island, an affluent suburb located about 10 miles southeast of downtown Savannah, the community features 28 independent living, 39 assisted living and 12 memory care units. It offers restaurant-style full-service dining, a full-service salon, community library, and in-house physical, occupational and speech therapies. Occupancy was a very strong 95% at closing. We don’t see that too often these... Read More »60 Seconds With Ben Swett: Assisted Living – Where Are Values Now?
More than seven months into 2021, assisted living communities have been the most popular targets in the M&A market, representing a plurality, or 41%, of all transactions in the year, so far. Average prices have also risen compared with last year, according to our in-house statistics. But we still have many questions about the market’s fundamentals, what is motivating investors, and how different facilities are being valued today. Has pent-up demand already exhausted itself for this need-based product? Is the recovery meeting expectations, particularly for cash flow rather than just census? Are stand-alone communities preferred, or a continuum of care? These types could be valued very... Read More »
Capital Senior Living Corrects Earnings Statement
Early today, Capital Senior Living announced revisions to its second quarter earnings report, most likely as a result of our reporting last Friday of the very misleading error, as well as management’s denial of any reporting issue during the earnings call. No one else caught the mistake, and it was not an insignificant one. In today’s release, they called it an “inconsistency” in the preparation of the supplemental information with regard to operating expenses and operating margin. As a result, the operating margin for the second quarter was 21.5% and not 28.7% as was originally reported. The originally reported 860-basis point sequential increase in operating margin should... Read More »
Assisted for Living Acquires Trillium Assets
Assisted for Living Inc., a Bradenton, Florida-based diversified healthcare company, is on a little growth spurt, having just acquired an assisted living business and opened a new pediatric extended care center both in Florida. First, they acquired Trillium Healthcare Group’s assets. Trillium is a post-acute care company that leases and operates 26 skilled nursing facilities in four states: Florida, Georgia, Iowa and Nebraska. In total, its portfolio features 1,546 skilled nursing beds, 139 assisted living beds and 36 independent living units, and 2020 revenues reached approximately $100 million. The acquisition includes Trillium’s back office, which will be integrated with the current... Read More »
Lument Provides Financing for IL/AL Community in South Carolina
Lument Securities recently closed a $22.8 million bond placement through the 142(d) program, which allows for-profit developers to obtain tax-exempt debt so long as their project meets certain income requirements. The financing gives the borrower, in this case South Carolina-based Whitehall Senior Living, higher leverage, non-recourse debt, with a fixed rate. That allows them to allocate more equity to other projects. Kevin Oakley, director for Lument in the Southeast, led the transaction. The new community will feature 87 units of independent living, assisted living and memory care services. Upon opening, Phoenix Senior Living will then operate it. Read More »
HJ Sims Arranges Refinancing for North Carolina CCRC
HJ Sims returned to a CCRC in Charlotte, North Carolina to arrange a refinancing solution for the campus. The transaction comes nearly two years after HJ Sims closed $12.95 million in tax-exempt Revenue Anticipation Bonds to cover pre-development and development costs for an expansion project. A year later, HJ Sims identified a refunding opportunity for the sponsor’s outstanding Series 2013 bonds. They utilized Cinderella Bonds, which would be taxable until the optional redemption date, after which the bonds would convert to tax-exempt. Sims served as a placement agent and worked with the sponsor’s financial advisor, Pearl Creek Advisors, to conduct a bank solicitation to also refinance... Read More »
Axiom Capital Refinances IL Community in New York
Axiom Capital LLC has provided a $17.4 million loan for the refinancing of a 178-unit independent living community located in Saratoga Springs, New York. The 10-year, non-recourse loan had a fixed interest rate. Since its inception, the community has been owned and operated by a local organization. A life insurance company provided the loan. Read More »
CanAm Capital Finances Construction Project in Florida
CanAm Capital Partners (CACP) has closed a $10 million mezzanine loan for an affiliate of Lloyd Jones, LLC to build a 159-unit active adult and independent living rental community located on a 10-acre site in Port St. Lucie, Florida. The property will operate under Lloyd Jones’ proprietary Aviva brand as Aviva, Port St. Lucie. CACP is a full-service financial firm providing EB-5 investment funds and conventional financing. The $10 million in debt for the Port St. Lucie project was reinvested from the company’s $350 million loan to Florida East Coast Industries’ Brightline rail project. The original loan was a key financing piece in the development of the high-speed passenger rail system in... Read More »
Capital Senior Living, Mixed Messages
Capital Senior Living released its second quarter earnings yesterday, and there was some good news with the bad. On the good news front, occupancy has increased from the February low of 75.3% to 81.8% at the end of July, for a whopping 650 basis point increase. That is among the best we have heard in the industry. Some of the increase came from discounting early on in the recovery, and management said these incentives have begun to decline. The bad news on the occupancy front is that the rate of increase has significantly slowed. April saw a 143-basis point increase, followed by 134 bps in May, and then slowed to 85 in June and a paltry 25 in July. Now, as we have statistically... Read More »Schedule a demo
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