Meridian’s Momentum Continues into Q1
Meridian Capital Group’s Senior Housing and Healthcare team closed nearly $1 billion in transaction volume in the first quarter of 2022 for 97 properties in 19 states, following a record year in 2021 where they closed more than $5.5 billion in transaction volume. Ari Adlerstein and Josh Simpson led the team, which included Matt Lesnik, Jesse Rauch, Rafi Sod, David Gottlieb, Jacob Scott and Yuval Hananya. The largest transaction was a $100 million acquisition loan provided by a commercial bank and mezzanine lender for seven skilled nursing facilities comprising 848 beds in Florida. There were several other acquisition loans, including an $80.3 million loan from a finance company for the... Read More »
Mom & Pop Exits Wisconsin Community
Mark Van Den Broeke of Senior Care Realty closed the sale of a northern Wisconsin memory care community on behalf of the mom & pop seller looking to divest their only asset. Built in 2015 with high-end finishes, the community has 28 beds and 24 units, with rents averaging $7,000 per month. It boasted 92% occupancy, with a majority of residents being private pay. The community also operated at a roughly 38% margin on about $1.65 million of trailing revenues, but the seller was motivated to exit. An out-of-state family buyer with a handful of properties in Texas but ambitions to grow in the Midwest paid $4.4 million, or $183,300 per unit, for the community. Read More »
Plains Commercial Closes Texarkana Transaction
Daniel Morris of Plains Commercial announced the sale of a memory care community in Texarkana, Texas, allowing the seller to exit the memory care business in the process. Built in 2010, the community is licensed for 40 beds and has a high-quality physical plant. However, there was opportunity for upside (occupancy was just above 50%) through management changes and further lease-up. So, the seller chose a regional assisted living/memory care operator as the buyer. The purchase price was not disclosed. Read More »
Ziegler Arranges Bonds and Bank Debt for Wisconsin Provider
Ziegler closed tax-exempt bond financing for Wisconsin Illinois Senior Housing, Inc. (WISH) to refinance its prior debt. The financing is comprised of approximately $22.46 million of bonds directly purchased by BMO Harris Bank, along with a $1.531 million taxable term loan. Proceeds of the bonds and the bank debt will be used to refinance WISH’s outstanding Series 2018B (taxable), 2018C, 2018D, 2019A (taxable), and 2019B bonds in an aggregate amount of approximately $23.5 million. In addition, WISH can cover an associated prepayment penalty, and pay costs of issuance. The Series 2022 bonds were issued through the Wisconsin Health and Educational Facilities Authority. WISH is... Read More »
Occupancy On the Rebound
In the top 31 markets in the U.S., seniors housing occupancy has posted its third consecutive quarterly increase, according to NIC MAP data. Combining assisted and independent living, the first quarter of 2022 posted a 20-basis point increase from the previous quarter to 80.6%, and up 250 basis points from the first quarter of 2021. While smaller than we would like to see, we will take it. The pandemic low was 78.0% in the second quarter of 2021, according to the data. Assisted living posted the largest increase in census among the three major categories, increasing by 50 basis points from the fourth quarter to 77.9%. This is up 370 basis points from the pandemic low of 74.2% in Q2... Read More »
Blueprint Arranges Private Equity Exit
Chicago-based private equity firm, HAN Capital, engaged Blueprint Healthcare Real Estate Advisors to sell Valleyview of Owatonna, an 86-unit, non-purpose-built assisted living community in Owatonna, Minnesota, about 40 miles west of Rochester. The community was a low-cost provider in the area, mainly accepting residents on Minnesota’s Elderly Waiver and CADI waiver programs that allow for sustainable state reimbursement for income-qualified residents. The community’s occupancy peaked in 2020, when it generated approximately $2.7 million and $640,000 in total revenue and EBITDAR, respectively, on a limited private pay census. Armed with real-time market knowledge of the local... Read More »
Carnegie Capital Secures Bank Loan for Assisted Living Project
A construction project that was set to break ground in early 2020 is finally getting off the ground thanks to a bank loan arranged by JD Stettin of Carnegie Capital. Set in the Dallas-Fort Worth metro area, the cottage-style community will feature 48 assisted living and 16 memory care units. It is the second ground-up construction project for the undisclosed sponsor. To finance the development, Mr. Stettin arranged a $9 million loan from a North Texas regional bank with a five-year term and two years of interest only. That comes to 65% loan-to-cost and under 50% loan-to-value, putting the construction cost at $215,000 per unit, which was fixed with the general contractor. Seven banks and... Read More »
CIBC Bank USA Arranges Acquisition Loan
CIBC Bank USA closed on a $50 million acquisition loan for five skilled nursing facilities in Mississippi totaling 511 beds. Despite being purchased out of a distressed situation, the portfolio’s historical operating performance was relatively strong. Following their acquisition, the properties were leased to a large regional operator familiar with the state who intends to utilize their economies of scale and familiarity with the local market to reduce expenses and drive census. Read More »
NHI and Welltower Enter Settlement Agreement
Well, it’s finally done. Welltower and National Health Investors entered into a settlement agreement over the unpaid rent from 17 legacy Holiday Retirement properties that Welltower had not made contractual rental payments on since its August 2021 takeover of the portfolio. It is still baffling why the issue ever arose, especially since Welltower had contractual obligations to the landlord, NHI. But we are glad they can put this matter behind them, although we will see how much the two parties will work with each other going forward. Regardless, NHI held firm, was in the right, and won. The settlement agreement included a payment of $6.9 million, which is expected to be recognized in the... Read More »
Invesque Sells Portfolio to LTC Properties
Invesque Inc. announced three separate sales transactions totaling approximately $75 million that occurred in late March and early April. First, Invesque sold a vacant community in Port Royal, South Carolina. The standalone memory care community was previously managed by Phoenix Senior Living but will be repurposed for an alternate use by its new owner. It sold for $3.5 million, generating proceeds which were used entirely to pay down debt. Next, Invesque sold two seniors housing communities with 99 units in New York. Premier Senior Living formerly operated them under an absolute triple-net master lease, which was terminated in October 2021. Hearth Management operated the communities... Read More »Schedule a demo
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