Harbert Management Corp. Acquires South Bay Partners
Alternative asset management firm and consistent seniors housing investor Harbert Management Corporation (HMC) has acquired South Bay Partners, LLC, a Dallas-based seniors housing developer. South Bay has developed over 10,000 high-end seniors housing units costing over $1 billion across the United States. The company will complement HMC’s existing seniors housing investment platform, while allowing HMC to make development investment opportunities. HMC plans to raise capital for South Bay’s development projects through separately managed accounts and commingled funds. In addition, South Bay Founder and CEO Craig Spaulding will move to an advisory role following the transaction, while... Read More »
60 Seconds with Steve Monroe: 2021: Goodbye and Good Riddance
I thought about doing my usual year-end, cutesy Christmas poem where I roast a few industry leaders and friends, but somehow I just didn’t think it was appropriate this year. Maybe next year. Even though census and operating performance improved this year compared with 2020, it is still not enough. And then we had to end the year with the rising Omicron variant. No shutdowns here yet, and I don’t really see that happening since those who have been vaccinated have had mild symptoms to date. But it is just one more strain on an already over-worked health system that we did not need. In the aftermath of the Great Recession, all we heard was how resilient our industry was during that financial... Read More »
Brookdale: Time for a Reverse Split?
Perhaps it is because of the new Omicron variant spreading like wildfire, perhaps occupancy growth has stalled, or perhaps investors are just losing patience for a recovery that would boost the share price. Whatever the reasons, Brookdale Senior Living’s share price has dropped by 30% since mid-November, and it is now below $5.00 per share for the first time since last February. And, the 52-week high was $8.95 per share. Many investors do not like stocks that are below $10 per share, with some funds even prohibited from owning them. A $4 stock, or lower, implies current weakness or poor future performance expectations. To remedy this perception, some companies complete a reverse stock... Read More »
Sonida Senior Living Begins Post-Acquisition Growth Projects
In an effort to begin large-scale growth under a new name, Sonida Senior Living has acquired two independent living communities in the Indianapolis MSA for $12.3 million. Totaling 157 units, Northfield Senior Living (built in 1982) and Southfield Senior Living (built in 2002) recently underwent significant renovations. But the approximate $79,000 per-unit price tag represents a discount to replacement cost. The two communities have an in-place November occupancy of 55.5%, as compared to Sonida Senior Living’s independent living occupancy of 82.7% for the same period. However, this is primarily the result of operational disruptions from the renovations projects taking place before the... Read More »
Regions Bank Originates Loan for L.A. Construction Project
The Regions Bank Healthcare Real Estate team, including Chris Honn and Amber Crosby, originated a $21.7 million construction and mini-perm loan for a joint venture between a Southeast-based developer/operator, an Arizona-based partner/operator and a Midwest-based private equity firm. The project, located in Los Angeles County, is expected to include 80 units, comprising 58 assisted living and 22 memory care units. The loan amount is approximately $271,250 per unit. It has a floating rate across a five-year initial term, four years of interest only and a staged reduction in loan repayment recourse. At or prior to maturity, Regions may also provide an agency permanent debt solution for the... Read More »
HHC Finance Refinances Two Idaho Communities
Housing & Healthcare Finance (HHC Finance), which recently announced that it is now part of and will be known as NewPoint Real Estate Capital going forward, closed a $19.5 million HUD refinance for Homestead Senior Living in Rexburg, Idaho. The loan refinanced conventional debt with a much higher rate and allowed the borrower to get an interest rate in the low-mid two’s. Homestead has 178 units of assisted living, memory care and independent living services across two campuses in Rexburg and nearby St. Anthony. Both properties were built in the early 2000s and have undergone several expansion projects over the last 15 years. Helios Healthcare Advisors brokered the deal, and Charles... Read More »
Ziegler Provides Financing for Ohio Not-For-Profit
Ziegler announced it has priced Series 2022 bonds on behalf of Ohio Living, a not-for-profit owner/operator of twelve seniors housing communities in Ohio. Nine of the properties are full-service life plan communities offering independent and assisted living units, along with skilled nursing beds. Proceeds from the bonds will be used to refund Series 2013A bonds and pay costs of issuance associated with the financing. The bonds will realize net present value savings on the Series 2013A refunding in excess of $15 million, or greater than 30%. The Series 2022 Bonds consists of tax-exempt fixed interest rate serial bonds and a final term bond. They have a 19-year maturity that “wraps” around... Read More »
Carnegie Capital Secures Refinance of AL Community
JD Stettin of Carnegie Capital helped secure the refinance of a small assisted living community in a secondary market near Charlotte, North Carolina. The community was built in the 1980s and features under 30 units of assisted living. It operated well throughout the pandemic, and around half of its census comprised Medicaid residents. There was a triple-net lease on the property that was set to expire prior to the loan’s maturity. With the help of Mr. Stettin, the community’s mom & pop owner secured a roughly $1.5 million loan from a local bank with a sub-4% interest rate fixed for a five-year term. It came with no prepayment penalty for the life of the loan and paid off all secured... Read More »
Blueprint Advises Texas SNF Repositioning
Blueprint Healthcare Real Estate Advisors was engaged by the real estate owner ServiceStar Capital Management, a family office based in Denver, to advise on the repositioning of its skilled nursing facility in Grapevine, Texas. Through the process, Blueprint helped secure a new lease agreement with Eduro Healthcare, a Utah-based operator with experience in the transitional rehab industry. The Lodge at Bear Creek was built in 2016 and is licensed for 100 beds. Situated in an affluent suburb approximately 21 miles northwest of Dallas, it also benefits from being built near two prominent regional hospitals, Baylor Scott & White Medical Center – Grapevine and Texas Health Harris Methodist... Read More »
Marcus & Millichap Closes Two Deals in Wisconsin
Marcus & Millichap’s Ray Giannini has closed two deals in Wisconsin, comprising a 110-unit CCRC and named Ladysmith Care Community and a 50-bed SNF called Shell Lake Healthcare Center. Ladysmith Care Community, located in Ladysmith, was built in the 1950s and 60s and renovated in 1991, and again in 2012. It has 20 RCAC units and 62 SNF beds and reported good occupancy. Shell Lake, located in Shell Lake, was built in 1984 with an addition in 1994. It is located one mile away from a critical access hospital and contains 11 private rooms. Read More »Schedule a demo
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