ORIX Secures Bond Financing for Minneapolis-Area Acquisition
ORIX Corporation USA secured a bond financing to support the acquisition of five seniors housing communities in the Minneapolis, Minnesota metro area. The transaction consisted of both tax-exempt and taxable debt and totaled $44.8 million. Coventry Properties of Minnesota, a fully integrated real estate development community that focuses on high-acuity seniors housing in Minnesota, was the borrower, adding 153 units of assisted living and memory care to its portfolio. ORIX’s Municipal and Infrastructure Finance business, which is led by Rob Wetzler, handled the transaction. Read More »
Walker & Dunlop Represents WindRiver in Seniors Housing Deal
Duncanville, Texas-based WindRiver Companies sold an active adult community in its hometown with the help of the seniors housing team at Walker & Dunlop. Jordyn Berger, Joshua Jandris, Mark Myers, Brett Gardner and Nick Hall worked on the deal and found the buyer, Dallas-based multifamily real estate investor Edison Equity Management Corp. (Edison). WindRiver originally developed the property in 2004 and has managed it ever since. They seem to have been ahead of the game in the growing active adult market. The community features 150 units, with rents ranging from $1,200 for one-bedroom units to nearly $2,100 per month for two-bedroom options. Occupancy was close to 100% throughout... Read More »
Blueprint Ventures into MOBs
After a busy year of closing seniors housing and care transactions (with 72 separate sales announced in 2020), Blueprint Healthcare Real Estate Advisors is now expanding its services into the medical office building brokerage world. They have brought on medical office veterans Eric Lee and Chris Lashmet to lead the practice. The market for MOBs certainly showed plenty of activity in 2020, and that doesn’t seem to be slowing down in 2021. According to search results in our Healthcare Deals Database, there have been at least 19 transactions publicly announced since January 1, driven primarily by announcements from Montecito Medical Real Estate, which reported nine of those deals. MOBs... Read More »
The Prestige Group Closes Two Senior Care Sales
Joe Shallow of The Prestige Group went up and down the East Coast to sell a couple of senior care communities. First, Mr. Shallow worked with President Richard Natow to arrange the sale of a vacant personal care facility in Philadelphia. Originally built in 1920 as a rest home for retired actors, the community featured 51 beds in 24 units. Several years ago, the family owner/operator decided to close and renovate the community, while transferring all of the residents to its sister facility in Philadelphia. However, the owner decided to sell and enlisted Prestige to run the process after the brokerage firm originally sold them the property. A local contractor with a number of apartment... Read More »
JLL Capital Markets Does Double Duty
JLL Capital Markets successfully sold and arranged acquisition financing for a large independent living community in the northern Detroit suburb of Southfield, Michigan. Featuring 298 units, the community is also primed to be converted into active adult, but we will wait and see if the new regional owner/operator (who is focused on that market) will do that. They paid $17 million, or $57,000 per unit, for the property and received $25.35 million in non-recourse financing to cover both the purchase and planned renovations. JLL’s David Gaines, Joel Mendes and Dav Macdonald worked on behalf of a private investor seller to complete the sale, while Trent Niederberger and Stephen Van Leer... Read More »
The Divergence of the “A” vs. “B” Communities
Prior to the pandemic, investment demand was high for the so-called “value-add” properties, with the potential for much higher returns than for “A” properties. With crashing occupancy all around, did this dynamic change, and will the disparity between “A” and “B” values grow wider post pandemic? The COVID-19 pandemic hit the seniors housing industry hard, and while no community was immune from the difficulties, there are probably going to be winners and, unfortunately, losers coming out of this. Lower acuity communities appear to have performed better in the last year, and properties with strong existing census had a leg up going into the pandemic. But in 2020, buyers seemed to have... Read More »
Newmark Sells Chesapeake, Virginia Community
The Newmark team has closed the sale of a seniors housing community in Chesapeake, Virginia (Virginia Beach MSA). Opened in 2000, the community features 47 assisted living and 26 memory care units. It averaged occupancy of 77% in 2020, which provided moderate cash flow for ownership. But that level could be improved, so a new regional owner/operator stepped in to acquire the property for $12 million, or $165,000 per unit. They expect to invest capex into the community and improve the physical plant. Their regional presence should also help provide scale to increase the operating margin. Read More »
Dwight Capital’s Strong Q1 Activity
Dwight Capital’s first quarter is in the books, and it was an active three months for them to say the least. The firm financed $121.6 million across 12 transactions, including four HUD loans, seven bridge financings and one additional financing. Starting with the HUD deals, Dwight Capital first closed a $21.3 million loan for a 195-bed skilled nursing facility in Long Grove, Illinois. Built in 1996, the facility received a substantial renovation in 2016 and now includes a therapy gym, family lounges, spa and salon services, and sound proofing to promote rest. It last sold in 2016 to Cascade Capital Group for around $14.4 million, or close to $75,000 per bed. After the deal, Legacy... Read More »
Blueprint Arranges Another Ohio Transaction
Blueprint Healthcare Real Estate Advisors has closed another senior care transaction in the state of Ohio. Connor Doherty, Michael Segal and Ryan Kelly arranged the deal, which consisted of a 61-bed skilled nursing facility in Hicksville, Ohio, about 40 minutes northeast of Fort Wayne, Indiana. Built in 1966, the facility is the only licensed provider in the area and features mostly semi-private units. Services include post-acute care, respite care, wound care, respiratory and oxygen therapy, adult day care, hospice care, IV therapy and tracheostomy care, among others. There are also extensive on-site services, including a portable x-ray, laboratory work, a pharmacy, a mental health... Read More »
Cambridge Realty Capital Secures Illinois HUD Refinance
Cambridge Realty Capital Companies refinanced a large skilled nursing facility in Rockford, Illinois (near the Wisconsin border) with a HUD loan. Built in 1963 and now featuring 270 beds, the facility is owned by an Illinois-based LLC. It provides short-term rehab care in both semi-private and private units. Services include orthopedic, cardiac, pulmonary and neuro-stroke rehabilitation, behavioral health and on-site dialysis. To refinance an existing HUD mortgage, Cambridge arranged a new $12.04 million loan with a fully amortizing, 35-year term. Read More »Schedule a demo
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