Turnaround Texas Senior Living Portfolio Sells
There is plenty of potential to add value in a portfolio of three seniors housing properties in Texas that recently sold. That is mainly because two of the communities are currently vacant. Located in eastern Texas within a two-hour drive of each other, the portfolio comprises 132 total units of assisted living. The one property that is operational was performing well, with positive cash flow and 90% occupancy at closing. But a new owner will have the chance to acquire the vacant communities below replacement cost, while also adding a stabilized property to its portfolio. That buyer ended up being Dallas area-based WindRiver Companies, a seniors housing developer, owner and... Read More »
Chicago Pacific Founders Adds Florida Community
We’ve written about how private equity firms are likely the buyers best equipped to acquire senior care assets in this current environment, given their deep pockets and penchant for value-add deals. One of those firms, Kayne Anderson Real Estate Advisors, has already shown its interest by closing several deals, including the $500 million acquisition of seven senior living properties from Welltower in June and the $97 million purchase of two brand-new senior living communities in the St. Louis, Missouri area announced just last week. AEW Capital Management is another that threw its muscle around with its $700+ million acquisition of another Welltower seniors housing operating portfolio made... Read More »
M&T Realty Closes Slew of HUD Deals
The team at M&T Realty Capital Corporation has been busy lately with a number of HUD refinances and loan modifications. M&T entered the third quarter with a pipeline of over $225 million in potential financings covering multiple HUD products. Recently, the firm has closed eight of those transactions, totaling $126 million. The senior care facilities receiving the financings were spread out across the country in Maryland, Mississippi, New York, Pennsylvania, Utah, Washington, Connecticut and Virginia. The borrowers were able to take advantage of the low interest rate environment, securing fixed rates below 2.75%. Also, in one case, M&T had to close a HUD deal when a COVID-19... Read More »
Recent Senior Care M&A Deals, Week Ending October 2, 2020
The third quarter ended with just 57 publicly announced deals, but the start of October was a little more active than usual. Check out our recent senior care M&A deal chart. Long-Term Care AcquirerTargetPrice Kayne Anderson Real Estate AdvisorsThe Boulevard Senior Living at St. Charles & The Boulevard Senior Living at Wentzville$97 million National Health InvestorsThe Courtyard at Bellevue$12.3 million Chicago Pacific FoundersHeritage Oaks of EnglewoodN/A WindRiver Companies3 senior living... Read More »
PGIM Real Estate Funds AEW/Merrill Gardens Portfolio Purchase
Earlier this week, we reported on the Welltower sale of 10 seniors housing communities to AEW Capital Management and Merrill Gardens Senior Living, and now we have learned that PGIM Real Estate provided the acquisition debt. The partnership buyer obtained a $460 million loan with a seven-year term. There is also a combination of fixed-rate and floating-rate terms. The debt funded both the acquisition and the recapitalization of the 10-property portfolio, which includes a total of 1,507 units of independent living, assisted living, memory care and even some multifamily units. There are also approximately 29,000 square feet of... Read More »
Kayne Anderson Acquires Again
Kayne Anderson Real Estate Advisors has already been one of the most active acquirers during the pandemic, with its purchase of seven senior living communities from Welltower for approximately $500 million as the major highlight. We have thought that private equity, with its deep pockets and billions of dollars on the sidelines, was well positioned to take advantage of value-add deals this year and would help kick start the senior care M&A market. The M&A market hasn’t really come back to life, but private equity firms have certainly been the biggest players of the year. Just look at AEW’s acquisition of another Welltower portfolio. Kayne Anderson recently acquired two... Read More »
National Health Investors Acquires Wisconsin Assisted Living Community
Ten months after refinancing a 43-unit assisted living/memory care community in Bellevue, Wisconsin, National Health Investors executed on a purchase option for the property. Opened in 2019, the community was operated by 41 Management through its affiliate Matthews Senior Living. Not long after the community opened, NHI provided a $3.87 million mortgage with a one-year term and two six-month renewal options. It also came with an interest rate of 13%. In addition, NHI obtained a purchase option, which it is executing at $12.3 million, or $286,000 per unit. The community was then leased back to 41 Management at an initial term of 15 years with two five-year renewal options. The... Read More »
HJ Sims Finds Bank Financing for Philly CCRC
Working on behalf of a large CCRC in northeast Philadelphia, HJ Sims helped arrange a bank financing through the community’s existing banking partner. Philadelphia Protestant Home (PPH) currently consists of 266 independent living units, 175 personal care units and a 126-bed skilled nursing facility. Ownership had been funding capital improvements from general fund revenues, but in order to manage its cash flow, it chose to finance $6.5 million of upcoming capex projects. So HJ Sims worked with Citizens Bank, the community’s existing banking partner, to secure a $6.5 million loan with a 10-year, fully amortizing term and a five-year interest-only period that is followed by monthly... Read More »
The Virtual NIC
This year’s NIC Conference will certainly be different, but let’s make the most of the digital social experience. As you can see, I am not Steve. Ben Swett here, filling in while Steve is out of the office. Next week is the start of the first virtual NIC Conference, and even though we would obviously rather see all of you in person, we hope to still see you virtually. Over the next two weeks, there will be plenty of educational sessions on finance and the impact of the current pandemic on operations, census and, of course, cash flow. And if you are into nursing homes, where else can you find a former CMS administrator and the current CEO of AHCA at the same place? I know we’re... Read More »
Grandbridge Gains Investment Sales Team
Grandbridge Real Estate Capital is making a big jump into seniors housing investment sales with the addition of three veterans highly experienced in the space. Cushman & Wakefield’s Tampa, Florida team, led by Allen McMurtry, David Kliewer and Jay Jordan, made the move to Grandbridge’s Seniors Housing and Healthcare Finance Group, which is headed by Richard Thomas in Atlanta, Georgia. They will bring experience representing sellers of seniors housing communities across the country, spanning over 190 properties in 35 states. Recently, the former C&W team arranged the $105 million sale of The Clare in downtown Chicago in December 2019, cementing its status... Read More »Schedule a demo
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