Regions Bank Provides Acquisition Loan for Thriving Idaho Community
We recently learned that in December, Regions Bank Healthcare Real Estate Group closed a $2.85 million three-year balance sheet loan for the acquisition of an 81-unit independent living community in Chubbuck, Idaho. Per unit, the loan amount comes to $35,185 and includes interest only for the term, can be extended for up to two years and can be increased in the future based upon property performance. Chris Honn handled the transaction for Regions. Comprising 82 units and one single-family home, Cottonwood Cove was built in 1987 and has 117,828 square feet on five acres. A western United States-based private equity firm purchased the community for $3.75 million, or $45,000 per unit, at an... Read More »
California Owner/Operator Refinances
Regions Bank Healthcare Real Estate Group recently closed a $9.5 million non-recourse balance sheet loan to refinance an 81-unit assisted living/memory care community in the Irvine, California MSA. The community is owned by a private Southern California-based owner/operator and was approximately 84% occupied at closing. The loan amount comes to approximately $113,100 per unit. There is a floating rate, an initial term of three years with an interest only period, and a one-year extension option. The loan is designed to be replaced with agency debt, based on property performance, and the amount may be increased during the term. Loan proceeds were used to repay a Fannie Mae loan,... Read More »
MidCap Provides Liquidity for AlerisLife
MidCap Financial announced that it recently closed financing for AlerisLife (formerly Five Star Senior Living). The $95 million floating rate first mortgage loan is secured by 14 high-quality senior living communities totaling 1,477 units in the Southeast, Midwest, and Northeast. The communities are all owned by AlerisLife and operated by their Five Star Senior Living brand. MidCap’s loan enhances AlerisLife’s liquidity position and provides funds for capital improvements across the portfolio. Read More »
SLIB Sells Portfolio in Arkansas
Nick Cacciabando and Patrick Burke of Senior Living Investment Brokerage sold a portfolio of three properties located in Arkansas. Consisting of 175 units of private pay assisted living, the properties average 6 acres and 52,000 square feet each and were built in the late 1990s. The seller, a local family owner/operator, developed the three properties and retired from the seniors housing industry with this divestiture. The buyer is a private national company based in New York who will enlist an operating partner to manage the property. This is their first acquisition in the state of Arkansas, but they own and operate communities in several neighboring states. No purchase price was... Read More »
Oregon Owner/Operator Sells Seven Sites
An Oregon owner/operator has exited the industry with the sale of their seven-property portfolio. Built between 1999 and 2014, each building has 15 units, and all are in secondary markets along the I-5 Interstate. The purchase price was $15.875 million, or roughly $178,000 per unit. While historically operating near stabilized levels generating gross revenue of $6 million, performance declined in late 2021. Although, occupancy at closing was approximately 85%, which a number of operators across the country would probably love to achieve right now. The buyer is a regional operator with a focus on serving memory care residents which intends to invest in operational systems to drive... Read More »
Liberty Senior Living Adds New Property in South Carolina
JLL Capital Markets closed the sale of Discovery Village at Sandhill, a 187-unit independent living community in Columbia, South Carolina. Developer South Bay Partners, LLC (now a part of the Harbert Management Corporation) divested the property to Liberty Senior Living, LLC, which took over operations following the closing of the transaction. The property has been rebranded as Inspire Sandhill. Completed in 2019, Inspire Sandhill features one-, two- and three-bedroom units averaging 981 square feet. Located on 8.39 acres, Inspire Sandhill sits near local entertainment hubs and an extensive number of local educational institutions. Charles Bissell and Cody Tremper of JLL led the... Read More »
Brookdale Reports and Provides Guidance
Not since the pandemic hit has Brookdale Senior Living provided guidance on adjusted EBITDA and RevPAR growth. It is something that has been missing for investors and analysts, but Brookdale was not alone in suspending guidance. It just became too difficult for anyone in the senior care business to predict with any amount of certainty what the next quarter or year would bring. Full year adjusted EBITDA is projected to be between $240 million and $260 million, while RevPAR is expected to grow by 10% to 12% in 2022. Adjusted EBITDA in 2021 was $138.5 million, but $283.6 million in 2020. The good news is that this means management has more confidence with where their operations are going. We... Read More »
60 Seconds with Swett: Deciphering the 2021 M&A Market
What to make of the 2021 senior care M&A market? Amid stagnant census, rising labor costs and media glare, average skilled nursing facility values went up last year, according to our in-house statistics. Meanwhile, seniors housing values fell slightly and remain well off pre-pandemic levels. But there has to be more behind these numbers. What factor does building age play in pricing, or location, trailing occupancy? What did buyers care about in 2021, and make them push their bids up? Or down? We’ll cover these topics in our annual Senior Care Acquisition Report, to be published later this month, but for those of you who want a preview of our 2021 M&A statistics, plus expertise... Read More »Lloyd Jones Expands Senior Housing Presence with Help From CBRE
CBRE National Senior Housing arranged acquisition financing for Lloyd Jones’ acquisition of River Bend Assisted Living and Memory Care in Rochester, Minnesota. Aron Will, Austin Sacco and Matthew Kuronen of CBRE worked on the deal. Built in 2014, the Class-A community has 89 assisted living and memory care units on 2.8 acres about 1.5 miles away from the original Mayo Clinic in Rochester. There are landscaped walking paths with direct access to scenic Zumbro River trails, and Lloyd Jones plans to enhance the property through technology and amenity improvements. In addition, it will implement an acuity mix shift, converting 16 out of the total 18 memory care units to transitional... Read More »
Bellwether Refinances for HRA
Bellwether Enterprise Real Estate Capital LLC (BWE), a national commercial and multifamily mortgage banking company, closed a $21 million Freddie Mac loan to refinance HarborChase of Naperville, an assisted living and memory care community located in Naperville, Illinois. BWE’s Ryan Stoll and Taylor Mokris originated the loan on behalf of the borrowers, affiliates of Bourne Financial Group and HRA Senior Living (Harbor Retirement Associates). Opened in 2016, the community has 101 units in two stories. HRA Senior Living operates it, in addition to four others in the state of Illinois. Its original construction loan was taken out as a result of this transaction. The new loan has a... Read More »Schedule a demo
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