Greystone Refinances Long Island SNF
Greystone’s HUD streak continues in the Northeast, following up on its refinance of a Yonkers, New York skilled nursing facility with a financing closed for a large skilled nursing facility on Long Island. Featuring 214 beds, the facility was originally built in 1972 on Long Island’s North Shore. It provides care for high-acuity, medically complex patients, with services ranging from cardiac care and post-surgery orthopedic rehab to physical and occupational therapy. Fred Levine arranged a $17.3 million HUD loan through the agency’s Section 223(a)(7) program, thereby lowering the borrower’s interest rate and extending their amortization period. The borrower was also able to raise... Read More »
Waiting To Sell, Or Buy, Or Lend
If census has indeed bottomed in the senior care industry, investors may still want to wait for several months of sustained growth before buying again. Although “consensus” on anything is dangerous to rely on, it does seem that either we have hit that bottom of the occupancy plunge, and if not, we are very close to it. After a year of turmoil and uncertainty, a rising national occupancy level for seniors housing will be quite a relief. What we are hearing is that some lenders want to see at least three months of consistent, increasing census for their new loans, and we suspect some buyers will want to see that as well. I guess you could say they want to see it before they will believe it.... Read More »
CBRE Closes Two Financings
CBRE has secured a couple of financings for seniors housing clients on opposite sides of the country. First, in the Northeast, the team of Aron Will, Austin Sacco and Matthew Kuronen arranged a Fannie Mae loan to refinance a 269-unit rental CCRC located near Providence, Rhode Island. The property received a $39 million loan, or $145,000 per unit, with a seven-year term, fixed interest rate and two years of interest only. The same CBRE team also arranged construction financing for a to-be-built seniors housing community in Portland, Oregon. Set in a 16-story high-rise in the city’s Pearl District, the community will feature 177 independent living, 77 assisted living and 20 memory care... Read More »
Mitchell Family Office Takes Over American Health Partners’ SNF Portfolio
Mitchell Family Office (MFO) has acquired the skilled nursing division of American Health Partners, which was formerly owned by an employee stock ownership plan (ESOP). Having experience with ESOPs, with their transaction closed for a major Midwest senior care operator last week, Lument arranged a $168 million bridge loan to support MFO’s acquisition. Conner Girdley and Brandon Gill handled the transaction for Lument and were brought on in late summer 2020 to act as placement agents. Proceeds of the loan were used to acquire the skilled nursing portion of the acquisition for an undisclosed price. In addition to its 29 skilled nursing facilities, the company is also focused on inpatient... Read More »
CIBC Closes Cash-Out Financing In Illinois
Working on behalf of a local owner/operator, CIBC Bank USA has closed a cash-out refinance of a portfolio of three skilled nursing facilities in Illinois. Totaling $11 million, the loan comes with a five-year term. Neal Netzel and Mathew Tyler handled the transaction for CIBC. These facilities, which have an effective age of 30 years, total 260 beds. They have been historically well occupied around 85%, which is a solid figure for the sector in the last several years. Also, EBITDAR margins have been strong in the mid-teens. Most operators would happily take that. With those good operations, we imagine the owner was able to extract some equity from the... Read More »
Capital Funding Hits Impressive Mark For Q1 Closings
News of Capital Funding Group’s first quarter activity trickled out throughout the first three months of the year, but the firm recently confirmed that they financed in excess of $800 million for its clients across 13 bridge loans and 31 HUD loans. Even under “normal” circumstances, a quarter like that is certainly one to show off. We already profiled a couple of the transactions, the largest being a $285 million bridge-to-HUD loan for the acquisition of 16 skilled nursing facilities in the Mid-Atlantic. Erik Howard and Tim Eberhardt originated the transaction for Capital Funding Group, and Capital Funding, LLC, a subsidiary of CFG Bank, participated in the transaction. Another notable... Read More »
CCRCs Still Leading In Occupancy
Ziegler just came out with its quarterly analysis of occupancy trends for CCRC (LPCs) in conjunction with the NIC MAP data, and while census is still slipping, the sub-sector has fared better than the other components of the senior living spectrum. The data set used includes 1,134 CCRCs in both primary and secondary markets, as defined by NIC MAP. It is not clear how the other 800 or so CCRCs have performed. All CCRCs posted an average occupancy rate of 84.3% in the first quarter 2021, a drop of 720 basis points from the first quarter of 2020. While somewhat shocking, that performance is better than assisted living and skilled nursing. And, starting from an average... Read More »
And The Audience Says…
Last week, we hosted a webinar tackling the differences between two classes of seniors housing communities: “A” quality versus “B” quality. Often, buyers and investors of one group do not do much business in the other, so it is worth breaking out the differences in valuation, operations and investment strategies. So, for the last several years in our annual Senior Care Acquisition Report, we have divided seniors housing properties into these categories based on a combination of their age, size and location. Leading up to the pandemic, prices paid for “A” quality properties were surging as labor and occupancy headwinds seemed to be affecting “B” (and “C”)... Read More »
Greystone Secures Another HUD Refinance
Last week, Greystone announced two HUD refinances for senior care clients and followed up with a third, this time to refinance a 174-unit Section 8 senior apartment community in Pomona, California. Shana Daby of Greystone handled the transaction on behalf of AMCAL, a developer of multifamily properties in California, Texas and Washington. The $29.9 million loan comes with a fixed interest rate and 35-year term and amortization. Loan proceeds in hand, AMCAL will be able to make capital improvements and set up a debt service reserve. They will also take some equity out. AMCAL originally built the community in 2002 with six mid-rise buildings, with elevators, offering both one- and... Read More »
Lument Arranges ESOP Transaction
Lument Securities recently assisted one of the largest skilled nursing operators in the Midwest with the sale and transition of around 36 operating affiliates to a newly formed employee stock ownership plan, or ESOP. As a result, the company is now 100% employee-owned through its employee stock ownership trust. Laca Wong-Hammond and Dominic Porretta of Lument Securities served as investment banker and exclusive financial advisors in providing structuring and valuation services to the client in its negotiations with the Trustee. Across its more than 30 skilled nursing facilities (and some assisted living communities) across the Midwest, the company has over 4,000 licensed beds in its... Read More »Schedule a demo
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