Plains Commercial Handles Texas SNF Sale
Daniel Morris of Plains Commercial handled the sale of a 115-bed skilled nursing facility in Benbrook, Texas. Originally built in 1969, the facility was owned by a regional operator that decided to cull its portfolio and exit the Dallas-Fort Worth market altogether. Plus, the facility went through a difficult time with COVID-19 and saw its census decline significantly. Despite that, the seller was able to build occupancy to near pre-COVID levels by the time of the sale. Another regional owner/operator in a 1031 exchange was selected as the buyer and worked with Loan Star National Bank to finance the deal, which closed approximately six weeks from LOI. Read More »
CBRE Sells Five Communities in the Great Lakes Area
Lisa Widmier of CBRE Senior Housing has sold a portfolio of five assisted living/memory care communities in the Great Lakes region. Appropriately called the “Great Lakes Portfolio,” these communities consist of 514 units in Michigan (with three locations) and Ohio (two locations). Occupancy fell below 50%, and not surprisingly, the portfolio was not making any money at the time of the sale. Lone Star Funds and alternative investment manager Hudson Advisors acquired the portfolio from an unnamed seller. The purchase price was not revealed, we have heard it may have exceeded $115 million, or more than $225,000 per unit. Considering how far occupancy needs to come to improve both margin and... Read More »
Berkadia Refinances AL Community in Hawaii
Berkadia Seniors Housing & Healthcare has refinanced a 123-unit assisted living community in Kailua-Kona, Hawaii, for $16.58 million. Berkadia’s Jay Healy secured the financing on behalf of the owner, who acquired the facility in August 2017 after previously managing the building on behalf of the seller. The 35-year loan paid off an $11.7 million bridge loan that Berkadia had arranged to fund the acquisition and subsequent $4.5 million renovations, which was finished in early 2020. The borrower also used funds from the loan to pay off the remaining unsecured seller financing as well as some outstanding partnership debt. Occupancy was substantially below its potential at the time... Read More »60 Seconds With Steve Monroe: Capital Senior Living Butting Heads
Transcript A few weeks ago, we wrote about the proposed recapitalization of Capital Senior Living. This will give effective control to the investor, Conversant Capital, and result in a lot of dilution to existing shareholders. The investment is also very expensive. We thought that Cap Senior may have had no other choice: either this or face a major liquidity crunch, and possibly bankruptcy. One investor, Ortelius Advisors, with just under a 10% interest, thinks differently, and blasted management in writing. They think there are other ways to recap the company, and that other like-minded shareholders would be willing to help out financially as well. This may all be true, but where were... Read More »
Ziegler Closes Wisconsin CCRC Deal
Dan Revie, Don Husi, and Tedd Van Gorden from Ziegler represented Bridge Investment Group in the sale of its entrance-fee CCRC in Mequon, Wisconsin. LCS was the previous operator and will hand over management to the new owner, Iowa-based not-for-profit Lifespace Communities. No purchase price was disclosed, but Ziegler helped arrange acquisition financing for the deal. Built in 2003, the community has 159 independent living units, 36 assisted living units, 16 memory care units and 46 skilled nursing beds on a 52-acre campus. It will join six other Lifespace communities in the Midwest. Read More »
The Healthcare SPAC Market
For the past two years, the healthcare M&A market has seen a surge of deals involving SPACs, or special purpose acquisition companies created solely as a vehicle for emerging companies to go public. These deals, called a de-SPAC transaction, seem to be surfacing once a week in the healthcare market, a trend not unique to this industry either. Here’s how they start: a sponsor company or investor, sometimes a private equity firm or investment firm, creates a public shell company and then raises funds and capital, called a private investment in public equity, or PIPE, under the idea that it will use those funds to find a target private company. Investors can buy into the PIPE at a low... Read More »
Immanuel Purchases Two Lifespace Communities in the Midwest
Immanuel Communities, a not-for-profit owner of senior living communities, is extending its reach in the Midwest market with its recent purchase of two communities in Iowa and Nebraska from another not-for-profit, Lifespace Communities. The communities include Deerfield in Des Moines, Iowa, and Grand Lodge at the Preserve in Lincoln, Nebraska. Deerfield consists of 156 independent living units, 46 assisted living units and 30 skilled nursing beds, while Grand Lodge has 109 IL and 10 AL units. Immanuel is an arm of the Evangelical Lutheran Church in America. Read More »
HJ Sims Refinances Two Pennsylvania Seniors Housing Communities
HJ Sims closed a two-part refinance for Asbury Communities Inc.’s two seniors housing properties in Pennsylvania. The Erie location, Bethany Village, has two campuses with 400 independent living units, 100 assisted living units and a 69-bed skilled nursing center. The Mechanicsburg property, Springhill, features 158 independent living units, 35 personal care units and an 80-bed SNF. The loans refinance bonds from 2012 and include a $20.4 million bank loan and tax-exempt, fixed-rate bonds totaling $27.2 million. Altogether, that is $47.6 million of debt arranged for Asbury. That follows a $23.34 million financing package that HJ Sims closed for a small CCRC in New Orleans, Louisiana.... Read More »
Blueprint Facilitates Sale of New IL Community in Ohio
Blueprint Healthcare Real Estate Advisors helped sell a brand-new seniors housing community, closing the deal upon Certificate of Occupancy. Michael Segal, Connor Doherty and Ryan Kelly, plus Alex Florea of Capital Markets, handled the transaction. Developed adjacent to the POLARIS Commerce Center in Columbus, Ohio’s largest mixed-use development, the community is purpose-built as a four-story, 136-unit independent living community. Plus, the top floor was built to assisted living licensing specifications, leaving the option for the future. Graziano Construction and Development Company, Inc. developed the community in collaboration with Sweetbay Senior Living. Simultaneously with the... Read More »
Ventas Sees Census Growth
When looking at the second quarter results for Ventas, it almost appears that there are a few different story lines. Take the 321 U.S. same-community SHOP portfolio. Occupancy decreased 530 basis points in the second quarter to 72.1% from the second quarter of 2020. Not great but in line with the rest of the industry. But then its Sunrise Senior Living portfolio’s spot occupancy has increased by 627 basis points from the low point in mid-March to the end of July. Although it was not a straight-line increase, an average of 156 basis points a month is great. Heck, increasing at that level every quarter would be good. Its Atria Senior Living portfolio... Read More »Schedule a demo
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