CFG Closes Bridge Loan for Arizona Acquisition
Capital Funding Group announced the closing of $17.2 million in bridge debt for the acquisition of two skilled nursing facilities in Arizona. The experienced borrower previously operated these facilities, and through this transaction they were able to purchase the real estate at a pre-negotiated price that was set when they originally took over operations. Totaling 232 beds, the facilities were built in 1982 and 1983. Capital Funding Group Vice President Tommy Dillon originated the transaction, which covered 100% of the costs due to the current market value of the facilities surpassing the agreed-upon purchase price. The deal follows an impressive first quarter with over $840 million in... Read More »
JLL Refinances California Active Adult Community
JLL Capital Markets closed the refinancing of a 172-unit, garden-style active adult community in Chatsworth, California. The borrower was Universe Holdings, and they received $30.315 million in fixed-rate funds through Freddie Mac for 10 years. Nantucket Creek was built just over 35 years ago and has one- and two-bedroom units ranging in size from 623 feet to 1,100 feet. The community has a clubhouse, fitness center and many other amenities, and at closing the occupancy was about 97%. That strong census may be why a 35-year-old building was able to get financing for $176,000 per unit. The JLL team representing the borrower included Charles Halladay, Jonah Aelyon and Elie... Read More »
Ventas SHOP Poised for Growth
Ventas is one of the largest owners of seniors housing communities, so it is a REIT always worthwhile to watch. It owns 544 communities with 61,794 units in its SHOP portfolio, plus another 267 communities with 20,149 units that it owns and leases to operators. We usually focus on the larger SHOP portfolio, mostly because there is much more detailed information on it. And this portfolio includes both the 463 U.S. communities and the 81 in Canada. This is important because the Canadian portfolio has a much higher average occupancy rate, 93.2% compared with 77.6% in the U.S., even though the U.S. is seeing more significant improvements. But how do you really improve on 93.2%? The... Read More »
Brookdale Improves, But More Is Needed
As you know, we never expect much in the first quarter for seniors housing operators, because historically it is always the toughest quarter from a census perspective. And Brookdale Senior Living is like an aircraft carrier: it is so big that it can take forever to change direction, and mishaps can take even longer to correct across their industry-leading 678 communities. Their first quarter results showed some progress, but also showed that they have a long road ahead to increase census and control labor costs. Digging out from weighted average occupancy of 69.4% in the first two months of 2021 is no easy task. And Brookdale should have a target of at least 85% across the portfolio, at a... Read More »
AlerisLife Starts Operations Review…Again
The shareholders of AlerisLife Inc., formerly known as Five Star Senior Living, just can’t catch a break. They completed a major review of their corporate structure and operations over the past few years, which resulted in cutting the company in half in terms of the number of properties operated and shifting from leases to management contracts. That seemed to work for a while, but the pandemic interrupted the progress. Now, just before the first quarter earnings results were released, the company announced that its CEO, Katie Potter, resigned effective April 30 (a Saturday, no less). Given the timing, we assume she was asked to resign. Jeff Leer, who has been EVP, CFO and Treasurer since... Read More »
Blueprint Sells NJ Community Out of Receivership
So, how do you sell an underperforming, over-leveraged community that is in receivership and was originally built in 1965. That is a tough one, but it did help that Priority Life Care was the court-appointed receiver and manager effective about the end of 2020. This is what Blueprint Healthcare Real Estate was dealing with when it was hired to sell a 164-unit community in Pennsauken, New Jersey called Ivystone Senior Living. Apparently, the owners refinanced existing HUD debt in the year before the pandemic hit, taking out some excess cash. What was not known (or forgotten) was that in order to participate in a relatively lucrative Medicaid program for the “independent living” units, the... Read More »
Kansas Senior Care Facilities Trade Hands
Nick Cacciabando and Jeff Binder of Senior Living Investment Brokerage closed a couple of Kansas deals in early May. First was the sale of two senior care facilities plus the leasehold interest of a third facility in southeast Kansas. A regional investment group consisting of three investors experienced in the industry had owned the real estate of two properties and leased the third facility from the eventual buyer, a Kansas-based operator with a large presence in the state. The acquired facilities included Assisted Living at Windsor Place in Coffeyville with 32 units (licensed for 36 assisted living beds) and Windsor Place of Iola with 45 dually licensed skilled nursing beds. They were... Read More »
Newpoint Announces Mid-Year HUD Volume
HUD released production data for the first half of its fiscal year last month, and despite the current rising rate environment, LEAN transaction volume showed that activity has remained fairly consistent when comparing the first half of the past five fiscal years. And Newpoint Real Estate Capital, which acquired Housing & Healthcare Finance in December 2021, reported a strong six months too, securing the second-most initial endorsements with $238 million across 15 transactions representing 3,147 beds/units. For HUD’s H1:2022, there were 148 initial endorsements totaling roughly $1.7 billion, down slightly from $1.8 billion for H1:2021 and $2.2 billion in H1:2020. However, the number... Read More »
Ziegler Finances South Florida Acquisition
Ziegler announced its role as exclusive financial advisor in raising financing of $20.525 million on behalf of Comprehensive Care Capital (an affiliate of The Rosdev Group) to acquire two senior housing communities located in Boca Raton and Lantana, Florida. The communities, Banyan Place – Boca and Banyan Place – Lantana offer independent living, assisted living and memory care services. Banyan Place – Boca consists of 130 independent living, assisted living and memory care units, while Banyan Place – Lantana has 39 licensed memory care beds. CCC’s operating affiliate, Forte Healthcare, led by Yosef Nathan, will manage the Boca and Lantana communities as part of this transaction. ... Read More »
60 Seconds with Swett: OHI Soars After Q1 Earnings
Omega Healthcare Investors came out with its first quarter earnings on Monday May 2nd, and its share price soared throughout Tuesday, peaking at 28.89 per share (as of this filming), or up 14.8% from its previous close at $25.13. Granted, that is still not far off of its 52-week low of $24.81, but good news is good news. First off, the company announced that it successfully sold 22 of its struggling Gulf Coast Health Care skilled nursing facilities, representing the majority of that portfolio for $318 million in cash. Gulf Coast had stopped paying contractual rent in the second quarter of 2021 as it was in the process of filing for chapter 11, so getting these facilities off its plate... Read More »Schedule a demo
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