People’s United Bank Refinances Two New England Communities

by | Jun 2, 2021 9:41 am | Financings

Bridgeport, Connecticut-based People’s United Bank announced a couple of refinances for seniors housing clients in New England, working with participating banks on both deals. First, up the coast in Mystic, Connecticut, Masonicare of Chester Village is a 179-unit seniors housing campus with independent living, assisted living and memory care services. It opened in 2016. Masonicare received $45 million of debt, with People’s United Bank as the lead holding $30 million and Washington Trust participating with a $15 million hold. There is a seven-year term and 30-year amortization on the debt, which was came in under 67.5% loan-to-value. The transaction replaces mortgages previously held by... Read More »

M&A in May Falls Flat

by | May 30, 2021 8:03 pm | Statistics

Despite the positive occupancy news coming out of seemingly every earnings announcement in May, buyers held back this month, announcing just 26 transactions. To be fair, that total beat’s February’s 25 publicly announced transactions (albeit being a 28-day month), and tied January. But it was off of March’s 29-deal tally and April, when a “whopping” 32 deals were announced.   We know that plenty of both buyers and sellers are waiting for a three- to six-month period of sustained occupancy and NOI growth before either risking the purchase or getting the desired price. But with a surge of deals closed at the end of April, we also thought a certain barrier had been broken and... Read More »

Newmark Announces Closing in Kansas

by | May 30, 2021 7:57 pm | Acquisitions

The Newmark team has been quite active lately, and an early May closing recently rose to the surface. The deal included an 89-unit seniors housing community in Wichita, Kansas. Built in 1997 with 22 independent living, 51 assisted living and 16 memory care units, the community was around 80% occupied, and there was land available for expansion. It also brought in nearly $500,000 of NOI.   The purchase price was not disclosed, but the buyer was a Kansas-based regional operator. The seller was also not known. We learned of some other closings from the Newmark team, which we will detail in the June issue of The SeniorCare Investor.  Read More »

Watermark & Hines Partner On Mid-Rise Development in Houston

by | May 30, 2021 7:54 pm | Developments

Watermark Retirement Communities and Hines have partnered to develop a large, seven-story seniors housing community in Houston’s Greater Heights neighborhood. The community will include 222 units of independent living, assisted living and memory care, with rents starting between $3,500 and $5,500 per month for IL. There will also be a host of amenities, two whole floors of dedicated amenity space, in fact. The community will also be the tallest building in the neighborhood and will have views of the downtown skyline.   This is Watermark’s fifth Élan property, which is the operator’s upscale brand. Other partners on the project include Munoz + Albin Architecture and Planning (the design... Read More »

Recent Senior Care M&A Deals, Week Ending May 28, 2021

by | May 30, 2021 7:47 pm | Acquisitions

Perhaps the summer dealmaking doldrums have come early, as senior care M&A activity dipped this week. Here is our latest deal chart. Long-Term Care AcquirerTargetPrice Private equity Journey Senior Living of Valparaiso$9.15 million Private fund2 skilled nursing facilities$8.5 million National owner/operatorThe Residence at Legacy Park$18... Read More »

Senior Living Investment Brokerage Handles Active Adult Deal

by | May 28, 2021 9:34 am | Acquisitions

Their ears must have been burning, because after we discussed the rise in M&A activity in the active adult/55+ market, Matthew Alley and Bradley Clousing of Senior Living Investment Brokerage announced the sale of an 81-unit community in Granbury, Texas. Developed in stages from 2018 to 2020 by a local mom & pop, it was already fully occupied with a wait list by the end of 2020. Talk about strong demand! It helps that the community is located near Lake Granbury and the lakefront activities there, along with many restaurants and shopping downtown.  We’ve talked about the strong operating margins that active adult can offer, and indeed, this community brought in $950,000 of EBITDAR... Read More »

Carnegie Capital Closes Acquisition Financing

by | May 28, 2021 9:31 am | Acquisitions, Financings

JD Stettin of Carnegie Capital has announced another acquisition financing, this time for two skilled nursing facilities in north central Texas. Combining for 206 licensed beds and 54,000 square feet, the facilities were built in the mid-1970s. Occupancy could be improved, but that is not surprising given the past year. A national private fund emerged as the buyer, partnering with regional and local operators to manage the facilities.   They paid $8.5 million, or $41,300 per bed. Mr. Stettin secured a hybrid bank/private loan at 80% loan-to-cost (so, $6.8 million), which came with a three-year, interest-only term and a rate in the mid-4s.  Read More »

CBRE Closes Large Florida Refinancing

by | May 28, 2021 9:29 am | Financings

CBRE Senior Housing’s Aron Will, Austin Sacco and Adam Mincberg closed a large refinancing for a seniors housing community still in early-stage lease up in the Miami, Florida market. The community is also large and considered to be upscale.   Working with a debt fund, CBRE secured a $78 million loan, which came with a three-year term and a floating interest rate. There was also a full term of interest only. Given the property is still in lease-up, we assume that this loan took out previous construction debt, but no other details were disclosed.  Read More »

Affordable Housing Deal Gets Multiple Financing Sources

by | May 28, 2021 9:28 am | Acquisitions, Financings

Community Preservation Partners and Hampstead Development Partners turned to KeyBank to secure capital to acquire and renovate an affordable senior apartment community in New Haven, Connecticut. Originally built in 1973, the Section 8 community consists of 121 units, split between 106 one-bedroom and 15 two-bedroom units. Plus, there is one ground-level retail bay, which includes a KeyBank branch, in the nine-story building. Going forward, the property will have a Housing Assistance Payments (HAP) Contract covering 112 units for 20 years, and the other nine units will also operate as tax-credit units.   KeyBank Community Development Lending and... Read More »

The 55+ Market Builds Momentum

by | May 25, 2021 8:01 pm | 60 Seconds, Opinion

Coming out of the pandemic, investors are enamored with the 55+ or active adult market, but we will see if that enthusiasm turns into overexuberance. Perhaps the brightest star in seniors housing coming out of the pandemic has been the active adult market, and investors took notice. Census stayed strong relative to the other sectors, and owners tout their lower average move-in age, more approachable rents for residents, lower labor costs and higher operating margins. As a percentage of seniors housing deals announced, according to our deal database, active adult has grown its share from a paltry 2% in 2019 to 6.4% in 2020 and 8.2% so far in 2021. Plenty of firms have also announced... Read More »

Healthcare Trust Divests Two Florida Facilities

by | May 25, 2021 7:58 pm | Acquisitions

Cushman & Wakefield’s Senior Housing Capital Markets team completed the sale of two skilled nursing/assisted living facilities on behalf of the public, non-traded REIT, Healthcare Trust, Inc. These two properties represent the last of the three strategically planned majority-skilled nursing property sales in the state of Florida, after having already sold its SNF in Lutz earlier this year for $20 million, or a gain on sale of real estate investments of $3.8 million. Cushman & Wakefield handled all three property sales.   Healthcare Trust acquired one of the communities, The Addington at Wellington Green in Wellington, Florida, seven years ago. Built in 2011, it features a 120-bed... Read More »