Cain Brothers Finances North Carolina CCRC Expansion
A CCRC in Greensboro, North Carolina is about to embark on a massive expansion with the backing of a bond financing underwritten by Cain Brothers, a division of KeyBanc Capital Markets. Founded over 100 years ago as the first Masonic retirement community, the not-for-profit WhiteStone, which is owned by The Masonic and Eastern Star Home of North Carolina, is set on a 43-acre campus. It has been managed by Life Care Services since 2006. LCS Development is handling the expansion, which will feature 67 additional independent living units, a 36-unit assisted living/memory care building and an extensive renovation of the existing 20-year-old skilled nursing facility which will convert many... Read More »
People’s United Bank Closes Two More Financings
Continuing the series of closings from People’s United Bank that we first covered last week, the bank then closed a $9 million construction loan to cover renovations at a newly merged senior living community in Connecticut. An existing customer of People’s United Bank for many years, Pierce Memorial Baptist Home is a rental CCRC in Brooklyn, Connecticut that features independent living, assisted living, short-term rehab and long-term care services. It recently merged with Connecticut Baptist Homes (CBH) but will continue to maintain a separate state license and cost reports, as per the state. A plan to renovate and convert an empty SNF wing to a 10-unit AL/memory care building, as well... Read More »
M&A Market Pick-up?
Finally, seniors housing and care transactions are picking up speed after a six-month slowdown. With just over two months to go in what has been the most unusual year I have ever experienced, it seems like the senior care M&A market is finally picking up. Not only was the $702 million Welltower sale completed with one of the most aggressive cap rates I have ever seen, with or without a pandemic, but smaller ones are getting done as well. And not all of these are postponed deals from last March. I think all of us are just a little bit tired of the inertia of the past six months, and everyone wants business to be back to at least 75% of normal. The reality is that there is plenty of... Read More »
Real Estate Investment Group Acquires Northern California Seniors Housing Portfolio
M&A has been especially active in the first two weeks of the fourth quarter. It seems a dam, of sorts, of delayed deals had broken. There are certainly many more deals still in limbo or terminated altogether because of the pandemic, but it is an encouraging sign to see this level of deal-making considering the circumstances. One highlight of the activity was the sale of three seniors housing communities in the Northern Sacramento Valley in California, handled by Jason Punzel, Brad Goodsell and Vince Viverito of Senior Living Investment Brokerage. The deal includes two properties in Chico and one in Oroville, with a total of 85 memory care units and 131 beds. Built... Read More »
Reis Handles Stockton, California Closing
Another small, local owner is exiting the senior care business, with the sale of its assisted living community in Stockton, California. Rob Reis of Marcus & Millichap represented them in the transaction and found a small, regional owner/operator to acquire the property. Featuring 87 units and 96 licensed beds, the community was 78% occupied at the start of negotiations. Plus, the community was producing about $220,000 in NOI on gross revenues of $1.8 million. In addition to improving the operating margin, there is upside in taking care of deferred maintenance and adding more care services. The final purchase price leaves room for adding value, with the regional owner/operator paying... Read More »
Local Owner in Georgia Exits Senior Care Market
Two Senior Living Investment Brokerage teams facilitated an owner’s exit of the senior care industry with the sale of two assisted living communities in Georgia to two different buyers. First, the local owner/operator sold its small community in Cartersville, northeast of Atlanta. Built during the last assisted living construction boom in the early-2000s, the 25-unit community was renovated in 2015. Since then, it has remained well occupied exceeding 90%. A Northeast-based owner/operator looking to expand its portfolio in the Peach State paid an undisclosed sum for the community. The other transaction saw a 58-unit community in Dalton (northeast corner of Georgia) sell to an... Read More »
Truist Refinances Colorado CCRC
Truist closed its first CCRC deal in the state of Colorado, acting as sole lender of a $50 million refinance of a property in Boulder, near Denver. Set in a residential part of Boulder, the not-for-profit CCRC was founded by the Rocky Mountain Conference of the United Methodist Church on 20 acres of land. It opened in 1960 with 100 apartments and has grown to care for more than 350 seniors. A 98-unit independent living expansion was also completed in 2019, along with several capital improvement projects, all totaling about $90 million. Truist arranged a $50 million refinance for the community, which will provide significant cash flow savings, liquidity and flexibility to ownership.... Read More »
Despite COVID-19, HUD Lean Records Strong 2020 Fiscal Year
This was not another ordinary fiscal year for HUD ended September 30, but the LEAN program still ended with nearly $4.4 billion in closings. That follows more than $3.7 billion in closings in the fiscal year 2019, which itself represented a slight increase over 2018’s volume. To reach such a high under the current circumstances, with in-person property inspections virtually impossible for months and HUD employees adjusting to working at home like so many of us, took great flexibility and a lot of hard work to get done. Greystone was head and shoulders atop the list this fiscal year, both in terms of transactions closed and in dollar volume. The firm closed 75 loans totaling more than... Read More »
Blueprint Handles Tacoma, Washington Transaction
A well performing assisted living community in Tacoma, Washington found a new owner with the help of Dan Mahoney and Blake Bozett of Blueprint Healthcare Real Estate Advisors. The seller has owned and operated the community for two decades, and is leaving behind a community with strong operations and cash flow. The 110-unit community caters to the middle market. Blueprint sourced a number of small owner/operators in Washington to take over and eventually found a local company with two other Tacoma communities. They worked with Harvest Bank to secure acquisition financing at 85% of the purchase price, which was not disclosed. The buyer plans to utilize its economies of scale in the Tacoma... Read More »
CBRE Refinances Tennessee Senior Living Community
The team at CBRE was in tune working through a Freddie Mac refinance of a senior living campus in Murfreesboro, Tennessee (Nashville MSA). According to our public M&A database, Deal Search Online, the borrower, a joint venture between Venue Capital LLC and Inspirit Senior Living, acquired the property from a local doctor and operator in January 2018 for $12.45 million, or $132,500 per unit. Built in 2001 with 68 assisted living and 26 memory care units, the community was around 85% occupied and operated at a 22% margin on $4.03 million of revenues at the time of that sale. There was an opportunity to especially improve the memory care census, so in came Inspirit and Venue... Read More »Schedule a demo
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