M&T Realty Finances Three Transactions
M&T Realty Capital Corporation announced its latest slew of transactions, providing nearly $36 million in financing. First, for a 95-unit assisted living/memory care community in southern Oregon, Steve Muth led the way on a $11.325 million bridge loan to support the property’s acquisition. M&T Realty financed 75% of the cost with the one-year, interest-only, adjustable-rate loan. Proceeds from the transaction will also allow for the new owner to invest $600,000 of capital improvements prior to a HUD refinance. M&T submitted the HUD application immediately and was able to use the same third-party reports for both transactions. M&T also closed two HUD refinances,... Read More »
Developers Breaking Ground on Numerous Projects
Several new construction projects were announced late last week in the seniors housing and skilled nursing industries, which is a positive sign after the year that operators have experienced. The pandemic understandably made developers wary of continuing with or beginning construction, not only due to the virus but also the high labor and construction costs and negative media coverage of the industry. And yet, construction is pushing forward, as indicated by the high number of projects announced just last week. We also saw LCS Development announce that it is reorganizing its senior living development business line. LCS has promoted several individuals to lead the initiative,... Read More »
Active Adult Development Market Active Too
Throughout the last year, the active adult sector has proven to be one of the most attractive sectors of seniors housing, and there are three new projects underway. PulteGroup, a prominent builder based in Atlanta, announced it will begin building a 55+ active adult community in North Florida called Summer Bay at Grand Oaks. The community will feature 306 single-family homes, with new homes starting in the low $300,000s and models projected to be ready in early 2022. The project began after PulteGroup noticed an uptick in demand for these kinds of communities in St. Johns County, Florida. Across the country, Trilogy by Shea Homes, a 55+ brand owned by national homebuilder Shea Homes,... Read More »
Griffin-American Healthcare REITs III and IV to Merge
Griffin-American Healthcare REIT III, Inc. (GAHR III) and Griffin-American Healthcare REIT IV, Inc. (GAHR IV) have entered into a definitive merger agreement so that GAHR IV will acquire GAHR III in a tax-free, stock-for-stock transaction. The newly merged company will be renamed American Healthcare REIT, with approximately $4.2 billion in combined healthcare real estate assets. Immediately prior to the acquisition, GAHR III will also acquire the business and operations of American Healthcare Investors, LLC (“AHI”), the co-sponsor of both REITs, and the external advisors of GAHR III and GAHR IV. Combining these entities and the capabilities in acquisitions, asset management,... Read More »
SLIB Closes Sale of AL Community in Georgia
The Senior Living Investment Brokerage team of Brad Clousing and Dan Geraghty closed the sale of an assisted living community in Milton, Georgia, that was in the middle of lease-up when the pandemic hit last Spring. Featuring 94 units and 124 beds, including 77 assisted living and 17 memory care units, the community opened in 2017 at a time when there was a lot of competition north of Atlanta. It had not reached stabilization by the time COVID-19 and economic lockdowns further challenged the effort. The local developer/operator had reached their investment horizon and chose to sell the community to a Tennessee-based operator looking to expand their presence in the Southeast. The purchase... Read More »
HJ Sims Refinances Louisiana Senior Housing Community
After already closing over $530 million of HUD loans in Louisiana, Sims Mortgage Funding is returning to the state to refinance Metairie Manor, nearly a decade after previously refinancing the property. Metairie Manor is a 287-unit, Section 8 funded, affordable senior housing community, owned and managed by affiliates of the Archdiocese of New Orleans. This represents the 11th refinancing Sims has closed for the Archdiocese and its management affiliate, Christopher Homes, Inc. Sims previously helped refinance Metairie in 2012 when it paid off its HUD Section 202 Direct Loan. That refinancing produced about $250,000 in annual debt service savings that have been used to fund various... Read More »
Monticello Announces Refinancing of Arkansas SNF Portfolio
MONTICELLOAM, LLC and its affiliates (Monticello) announced a big refinance for an experienced client in Arkansas. The $70 million, five-year loan is secured by a portfolio of seven skilled nursing facilities and 953 total beds. That represents the bulk of the borrower’s holdings in the state, which numbers approximately 1,200 beds. The seven facilities average over 30 years in age. This transaction comes a month after Monticello and Greystone announced they intend to form a joint venture to become a one-stop-shop provider of capital finance products and services for the senior housing and healthcare industry. The products offered will include first mortgage floating rate bridge loans,... Read More »
Cambridge Realty Provides HUD Loan to AL Community
Cambridge Realty Capital Companies has provided a $3.11 million HUD loan to Maple Creek of Lakewood, a 75-bed assisted living facility located in Lakewood, Washington. The fully amortized, 30-year loan was provided for the Oregon-based owner’s managing members, Maple Creek Venture, LLC and Dr. Christian A. Mason. Those borrowers are using the loan to purchase the property, which offers one-bedroom, private studio, private room with shared bath, and shared room/shared bath options. Read More »
60 Seconds with Ben Swett: M&A Hits a High in 2021
When it rains, it pours in senior care M&A. First, we noticed a significant uptick in deal activity this month, with over 30 transactions announced since June 1st. Not December’s level of activity, but we’ll take it. Then, Harrison Street announced the largest purchase in the industry in two years, spending $1.2 billion on 24 Oakmont communities. But yesterday, when we were still digesting the sale of former SNF giant Kindred Healthcare to LifePoint, Welltower made the biggest splash of all, buying Holiday Retirement’s owned portfolio of 86 independent living properties for $1.58 billion. Not only that, but Atria Senior Living will acquire the operating business of Holiday for an... Read More »
Dissecting the Holiday Retirement Deal
Welltower announced the acquisition of Holiday Retirement’s owned portfolio of 86 independent living communities for $1.58 billion, or just about $152,000 per unit. Simultaneously, Atria Senior Living said that it was acquiring Holiday’s operating business for an undisclosed price. Either of these announcements would normally be major news, but they also come on the heels of Harrison Street’s $1.2 billion purchase of 24 properties operated by Oakmont Senior Living and a very busy June (so far) with more than 30 individual transactions already made public. Perhaps the tide has turned for investment activity in seniors housing and care. The Welltower deal also represents yet another... Read More »Schedule a demo
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