Is Connecticut The Future For Wage Hikes?
In order to avert a strike by unionized nursing home workers, a deal is being struck with the state that will send hourly rates soaring. In order to avoid a union strike at dozens of Connecticut nursing facilities, the Governor stepped in to help the two sides reach a deal. And what a deal for employees. Most hourly workers will have a pay raise set at a minimum of $20 per hour. CNAs will be increased from a $12 to $15 range to $20 per hour, while LPNs will have a minimum of $30 per hour. There are also increases in pension contributions and health and wellness programs. Most of the money will come from the state, with an extra $47.3 million in 2021 and $121.1 million in 2022, all going... Read More »
Chicago Pacific Founders Acquires Texas Community
Chicago Pacific Founders has added another Texas community to its portfolio, its first acquisition in the Lone Star State since announcing two separate deals in 2019. Opened in September 2019, this Houston community features 85,400 square feet and 100 units of assisted living and memory care. Meridian Realty Advisors developed it, with Integral Senior Living coming in as operator. However, Chicago Pacific Founders’ subsidiary Grace Management will operate the community going forward. Additional terms of the deal were not disclosed, but Chicago Pacific will invest in capital improvements at the property. Read More »
Lument Closes USDA Loan for Pennsylvania SNF
Lument secured a $35.6 million loan from the USDA CF (Community Facilities) program to fund the construction of a replacement 240-bed skilled nursing facility in Bellefonte, Pennsylvania. The previous 240-bed facility was more than 80 years old and had received some renovations over the years, but it was deemed unsuitable for substantial renovations due to both its age and location. So, Miles Kingston of Lument worked with Complete Healthcare Resources Eastern (CHRE), which has been operating the facility since 2013, to arrange the financing necessary for the project. It ended up being a multiyear strategy. First, CHRE obtained a $35.6... Read More »
Berkadia Closes Two Large Agency Financings
Berkadia announced two sizeable financings arranged for senior care clients in Portland, Oregon. The larger transaction saw Touchmark receive an $82.4 million loan through Freddie Mac to refinance its senior living community located just three miles from the center of Portland. Opened in 2018 with independent living, assisted living and memory care services, the community has around 275 units. Its construction cost was estimated at $90 million, or $326,100 per unit. Chris Cain and Rafael Nobo secured the seven-year debt at 53% loan-to-value, putting the community’s value now at over $155.47 million, or $563,300 per unit. This was the second agency loan... Read More »
VIUM Capital Adds Four Bankers
After a successful inaugural year in business, VIUM Capital clearly has ambitions for much more. The firm, which was started in April 2020 by Steve Kennedy and Kass Matt, just hired four more experienced bankers to join its roster. Columbus, OH-based Chris Blanda and Brendan Healy, Austin, TX-based Scott Blount, and Boca Raton, FL-based Tony Ruberg all joined VIUM as Senior Managing Directors. Together, these four have closed over $3 billion of seniors housing and healthcare financings across their combined half century of industry experience. Both Mr. Kennedy and Mr. Matt came from Lancaster Pollard, and so did these four new hires, although Mr. Ruberg had a year as... Read More »
Marcus & Millichap Handles Senior Apartment Transaction
Greg Parker and Greg Price of Marcus & Millichap’s Denver office represented a private investor in the sale of its low-income senior apartment community in Lakewood, Colorado. Built in 1999 under the low-income housing tax credit program, the community has 58 units with a mix of studio, one- and two-bedroom units. It also offers assisted living and independent living options. Community amenities include housekeeping services, activities, a library, beauty salon and restaurant-style dining. An undisclosed buyer acquired the property for $8.3 million, or $143,100 per unit. Phillip Gause of Marcus & Millichap Capital Corp. arranged acquisition financing for... Read More »
“Going Concern” Problem For Capital Senior Living
Perhaps in an effort not to rattle the market, Capital Senior Living filed its first quarter 2021 10-Q after the markets closed on Friday, May 14. Perhaps they thought no one would notice as many were out celebrating the removal of their masks. Not that it should have been a surprise, but in the filing the company reiterated its dreaded “Going Concern” statement, meaning there are enough uncertainties about current events and conditions that raise substantial doubt about the company’s ability to continue as a going concern within a year. No one should be surprised, other than those who have been pushing the price up in the past month. Helloooo. Last week after reviewing the financial... Read More »
Canadian Seniors Housing Market
The Canadian seniors housing market has fared a bit better than its U.S. counterpart during the past year or so, but it also started in a better place. Take the Canadian SHOP portfolio of Ventas. It currently has 74 communities that operated in the first quarter 2021 with net operating income of $171.8 million, or just over $2.3 million per community (all amounts in U.S. dollars). This compares with 364 communities with $272.7 million of NOI in the first quarter for the U.S. SHOP portfolio, or $749,000 per community. So, Canada makes up 17% of the communities but 39% of the NOI. Hmmm. On a same-community basis, there were 68 Canadian communities in the first quarter last year... Read More »
SavaSeniorCare Sells a Couple of Illinois SNFs
SavaSeniorCare sold a couple of its Illinois properties, part of its plan to transfer the operations of some 48 facilities in its portfolio by the end of 2021. The deal represents the company’s last two properties in the Land of Lincoln. First, it is handing over the keys of its 74-bed subacute/skilled nursing facility in Mount Vernon, Illinois, to a Midwest-based regional owner/operator. Built in the 1960s with additions throughout the 1970s, the facility provides a range of services from post-op rehab, stroke recovery and respiratory care to advanced therapy modalities like diathermy, heat and cold therapies and electrical stimulation, just to name a few. Lab and X-ray services are also... Read More »
Monarch Advisors Secures Revolving Line of Credit
Alec Blanc of Monarch Advisors closed a revolving line of credit for the operator of five skilled nursing facilities in southern Illinois, the purpose being to fund working capital costs across the portfolio. The borrower is based in Chicago and has operated the buildings for more than 10 years. They total about 600 beds and tended to be older, more rural facilities. Mr. Blanc secured a commitment from a national commercial finance company to provide a $2.75 million loan that allows advances up to 85% of the net collective value of accounts receivable. The non-recourse financing also came with a two-year, interest-only term and a floating rate. Read More »Schedule a demo
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