PGIM Arranges Two HUD Refinances
PGIM’s Seniors Housing and Healthcare Group arranged refinances for two seniors housing communities in the Southeast, the third and fourth properties refinanced for the same client during the pandemic. Christopher Fenton, Catherine Eby, Adrian Hartman, and Robyn Cunningham originated the loans. The first, totaling $7.93 million, went to a 112-bed skilled nursing facility in Bastrop, Louisiana. Rather than a loan modification, Mr. Hartman and Ms. Cunningham secured a loan to maximize annual cash flow through term extension and a rate savings of 0.8% when considering the lowered MIP. In the other deal, Mr. Fenton and Mrs. Eby provided a $15.94 million loan for a... Read More »
California Dreamin’
In a different sort of transaction than Senior Living Investment Brokerage’s recent Oregon deal, the team of Brad Goodsell, Jason Punzel and Vince Viverito handled the sale of a value-add property in California. Located about 12 miles southeast of Los Angeles, this 77-unit assisted living and memory care community was built in 1984 with a renovation in 2017. Occupancy was closer to where the rest of the industry has been near the end of the pandemic at 76%. A local owner/operator paid $7.7 million, or an even $100,000 per unit (certainly makes the math easy), with an in-place cap rate of about 7.7%. With the low occupancy, the operating margin is just under 19%, which certainly... Read More »
The Stahler Group Sells Monterey County Memory Care Community
The Stahler Group of Marcus & Millichap just closed the sale of a 69-unit assisted living/memory care community in Monterey County, California. Well located with strong demand and limited competition, the 22-year-old community was owned by a not-for-profit healthcare provider and originally leased by Emeritus, then ultimately by Brookdale Senior Living. Brookdale chose to not renew their lease for the community, which brought in sufficient cash flow but also offered significant operational upside with occupancy at 65%. After multiple full-price, competitive offers, a buyer with a strong regional presence stepped in to buy the community, using acquisition debt from a regional... Read More »
NORC Releases New Study On COVID Mortality
Just after we had wrapped up one of our lead stories in the June issue of The SeniorCare Investor on the nursing home comeback and some COVID myths, NORC at the University of Chicago released its analysis about mortality rates in five states across the senior care spectrum. With funding from NIC, they looked at five states – Colorado, Connecticut, Florida, Georgia and Pennsylvania – and 3,817 seniors housing properties in 113 counties in those states. Perhaps the key finding, at least for the independent living and CCRC providers (and their residents) was that 67% of the IL communities never experienced a COVID-related death. Better yet, the COVID mortality rate... Read More »
Senior Living Investment Brokerage Sells CCRC in Erie
Toby Siefert and Ryan Saul of Senior Living Investment Brokerage handled the sale of a Type C CCRC in Erie, Pennsylvania, working on behalf of the local not-for-profit seller. The original building was constructed in 1929, but the campus has undergone numerous additions and renovations over the years, most recently in 2010. It now has 139 skilled nursing beds and 58 residential/personal care beds in 29 units. Even though there are no independent living units, the CCRC designation is particular to Pennsylvania licensing. Currently, 100 of the skilled beds are used for skilled nursing (and they are dually certified), while 39 beds are in a separate building dedicated to... Read More »
Evans Senior Investments Sells Profitable SNF in Indiana
The transactions keep on coming from Evans Senior Investments, which followed up on its value-add deal in Pennsylvania with a skilled nursing sale in Indiana. This facility was built in three phases in 1964, 1978 and 1998, and now features 204 licensed beds, although 180 are currently functional. The owner/operator has other skilled nursing facilities but primarily on the West Coast. This was its only Indiana facility, the closest facility in its portfolio being 122 miles away. So, it was slated for sale. At the time of marketing, the facility was 60% occupied and profitable, generating $2.2 million of NOI at a 22.1% margin. Helping that strong margin (despite the low census) was the $1.9... Read More »
Oxford Finance Secures Senior Credit Facility
Oxford Finance closed a $24 million senior credit facility with Lantern Group, an owner/operator of both skilled nursing and assisted living facilities headquartered in northeast Ohio. The funds were used to acquire three assisted living/memory care communities in Ohio, in the towns of Chagrin, Madison and Saybrook. Totaling 219 units, they had been operated by Lantern since their original construction. Lantern will continue to operate them, no surprise there. The buyout had been in the works for some time, but Oxford helped navigate some hiccups along the way that come with getting deals done these days. Read More »
What A Feeling!
One big benefit of the country opening up is in-person conferences. It does feel good. Last week, I attended my first conference, in person, since March of 2020. And boy did it feel great! Shaking hands again, hugging people I haven’t seen in person in 15 months, or more, was like a celebration for everyone there. All because we were vaccinated. Thank you, Senior Living 100. I was invited to moderate a panel on, what else, the M&A market. Two weeks earlier, I was a panelist at their sister conference, The LTC 100, but I was virtual, as was one other panelist in my session, and it just was not the same. My two takeaways were that people are pretty optimistic about the comeback for... Read More »
Evans Senior Investments Sells Value-Add Property in Pennsylvania
The team at Evans Senior Investments represented an independent owner/operator in the sale of its value-add senior care campus in Rochester, Pennsylvania. Numbering 122 skilled nursing beds and 22 operational personal care units (out of a total of 62), the property sold for $9.2 million, or $63,900 per functional bed/unit. Originally built in 1965, the campus received a $2.5 million renovation from 2015 to 2019, leaving it with a modern physical plant and all rooms being either private or semiprivate. However, it was not profitable at the time of marketing, with occupancy averaging 69% and the community generating an NOI loss of over $1.0 million on $10.45 million of revenues. High... Read More »
CBRE Finances Active Adult Development in Chicagoland
A new active adult development that is set to break ground just received financing courtesy of CBRE and a national bank. Aron Will, Austin Sacco and Matthew Kuronen of CBRE Senior Housing partnered with CBRE Chicago’s Debt and Structured Finance’s John Parret and Peter Marino to arrange the $43 million construction loan. The to-be-built community is located in Chicagoland and will feature around 190 units. It is considered to be “A” quality, which we imagine are easier projects for lenders to get behind right now, especially with an active developer in the space. A national bank provided the loan, which comes with a five-year term, 42 months of interest only and a floating... Read More »Schedule a demo
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