Walker & Dunlop Arranges HUD Financing for Seven SNFs
The Chicago-based Walker & Dunlop HUD Finance Team announced that it has structured a combined $126.65 million in financing for seven skilled nursing facilities located throughout the Northeast and Midwest. Joshua Rosen led the origination team on the deal. Four of the properties received financing from the LEAN program, while the three others went through the agency’s loan modification program. The loans included terms ranging from 30 to 34 years. Three of the properties are located in Massachusetts (Brockton, Chelsea and Fall River), three in Illinois (Chicago, Niles and Northbrook) and one in Romeo, Michigan. Read More »
Recent Senior Care M&A Deal Chart, Week Ending March 5, 2021
March began with a bevy of seniors housing and care M&A transaction announcements. Here are some highlights in our deal chart. Long-Term Care AcquirerTargetPrice Owner/operatorAmber Glen Assisted Living & Memory Care$2.325 million CareTrust REIT, Inc.4 CCRCs$125.2 million Partnership buyerBeach House Assisted Living & Memory CareN/A Local not-for-profitColonial Place Assisted Living & Memory CareN/A Partnership buyerBrookdale Muscle... Read More »
Greystone Secures Bridge Financing for Missouri SNF
The Greystone Seniors Housing Capital Markets team secured bridge financing to refinance a 147-bed skilled nursing facility in Missouri. Owned by RSF Partners, a Dallas-based private equity firm focused primarily on the seniors housing sector, the facility was built around 10 years ago. There was previously a five-year term loan on the property, which is being taken out by a new $12 million loan with a two-year term. Read More »
Newmark Sells Largest Community of the Year
The investment sales team at Newmark sold one of the largest retirement communities we have seen in the market, and the new owners have plans to change it. Imperial Plaza in Richmond, Virginia was built in 1967 and has four towers on its 27.7-acre campus. Currently, there are 941 units broken out into 743 independent living, 146 assisted living and 32 memory care units. All the units are in the four high-rise towers. Occupancy had historically been between 88% and 91%, but it had slipped to about 75% as a result of the pandemic. Despite this, in-place cash flow remained relatively strong. The purchase price was $68.85 million, or about $74,750 per unit, and... Read More »
Walker & Dunlop Arranges Several Sales
The Walker & Dunlop Investment Sales team, including Joshua Jandris, Mark Myers, Brett Gardner and Jordyn Berger, is off to a good start to their year, already announcing a few closings with another four set to close in the next six weeks. In total, the team has about $1.0 billion of listings under contract and scheduled closings in its pipeline. They first closed the sale of an independent living portfolio in the Atlanta, Georgia metro area. Operated by The Mansions Group and owned by a group of investors and developers, the four communities are newly built, considered to be “A” quality and combine for 559 units. Most were stabilized with occupancy above 90%, but the newest... Read More »
CareTrust REIT Acquires Rental CCRC Portfolio
CareTrust REIT acquired four former Marriott rental CCRCs in Southern California for a combined purchase price of $125.2 million, or $196,500 per unit. That just about equals the average price per unit for seniors housing properties in the 2020 M&A market, according to 26th Edition of The Senior Care Acquisition Report. Originally developed by Marriott in 1999 and 2000, these communities total 360 assisted living units, 97 memory care units and 180 skilled nursing beds. They are all located in high-income markets in Camarillo, Carlsbad, Rancho Mirage and San Juan Capistrano. An institutional owner hired Evans Senior Investments to market and sell the... Read More »
Kidder Mathews Finds JV Equity Partner For Kansas Development
After the team arranged the construction debt on the planned senior apartment community in Shawnee, Kansas, Sean McNee and Robert Black of Kidder Mathews then secured a JV equity partner for the project on behalf of the developer, JC Mulligan Development Group, and the sponsor, Omega Senior Living. Featuring 228 apartments and 60 attached, for-sale villas (starting at $345,000 per villa), the developer commenced site improvements before the pandemic set in, which caused a six-month delay in any work. Completion is now expected by winter of 2022-2023, at a total cost near $45 million, or $196,000 per unit for the apartments. Monthly rents will range from $1,450 for a studio to $2,050 for... Read More »
CBRE Secures Construction Loan For Oregon Project
Construction lending may be slow at the moment, but Aron Will, Austin Sacco and Adam Mincberg of CBRE arranged financing for a to-be-built seniors housing community in Happy Valley, Oregon. A joint venture between The Springs Living and Harrison Street Real Estate Capital is building the community, which is set on a 6.95-acre site about 10 miles southeast of downtown Portland. Across the 210 units, half will be reserved for independent living, with the other half split between assisted living and memory care. There will also be numerous amenities, including an indoor pool, a movie theater, and a private dining room. CBRE secured a $60.4... Read More »
Home Health vs. Assisted Living
If people need care and full-time supervision, there is no cost comparison between assisted living and home health. Here’s a real life example. A friend recently asked for some advice (true story) about her 85-year old mother who was hospitalized, then went to a rehab facility, and then had the decision between moving back home or to an assisted living community. I think the family was inclined to assisted living, but mom wanted to go home, of course. The assisted living community in Connecticut, operated by a well-respected regional chain, offered $4,300 per month for a one-bedroom unit, but after the assessment admitted that she may be bumped up a care level or two. Given the... Read More »
Genesis to be Delisted After Welltower Split
When Genesis HealthCare announced last year that it may not make it in the following 12 months, you knew something had to be done. And then at the beginning of this year when its longstanding CEO, George Hager, departed, you knew that replacing one person with another was just not going to cut it. But perhaps it enabled the Board to move on what had to be done to salvage a desperate situation. Late on Tuesday, Welltower announced that it has substantially exited its 10-year operating relationship with Genesis HealthCare. The move cannot be seen as much of a surprise considering Genesis’ “going concern” notice last year, multiple major write downs associated with... Read More »Schedule a demo
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