Cushman & Wakefield Refinances Phoenix CCRC
Several years after financing the acquisition of a CCRC in Phoenix, Arizona, Cushman & Wakefield is returning to refinance the property in a $13 million deal. Featuring a total of 327 units, made up of 100 independent living units, 171 assisted living units, 29 memory care beds and 60 skilled nursing beds, the community is set on a 14-acre campus in northern Phoenix. A joint venture between an affiliate of Westport Capital Partners LLC and Integro Healthcare Consulting, LLC acquired it in 2017 for an undisclosed sum, with the help of a $15.1 million financing commitment from PNC Bank and arranged by Cushman & Wakefield. The debt also helped fund immediate renovations and a... Read More »
Ziegler Structures Debt For Radiant Senior Living Acquisition
Ziegler served as exclusive capital structuring advisor on a debt placement for the borrower, Radiant Senior Living, to acquire a portfolio of three seniors housing communities in the Pacific Northwest. Two of the properties are located near Seattle, Washington, while the third is in Bozeman, Montana. Previously owned by a publicly traded REIT, they combine for 36 independent living and 204 assisted living units and generate in-place, stabilized cash flow. However, there is an opportunity to add value through economies of scale, which suits Radiant and its 18-property portfolio in the Pacific Northwest. The $42.6 million in financing consisted of both senior and mezzanine debt,... Read More »
Valuing SNFs During The Pandemic
With occupancy at historic lows, and expenses in flux, it has been difficult to value nursing homes in today’s market. But it is happening every day despite the uncertainty. With occupancy still in turmoil and many nursing homes reliant on federal aid to pay the bills, it must be quite difficult to underwrite and value individual nursing facilities, let alone a portfolio of them. But it is happening every day. What assumptions do you make for occupancy, and census mix? What is a normalized level of PPE expenses, and will this be indefinite? And then you have labor costs and supply. With a Biden/Harris administration, is a $15 national minimum wage around the corner, and will... Read More »
SLIB Handles CBRF Sale in Wisconsin
Ryan Saul and Patrick Burke of Senior Living Investment Brokerage handled the sale of a 50-unit assisted living community in Racine, Wisconsin, five years after the community last sold. The buyer back then (and the current seller) was Meridian Senior Living and its joint venture partner Blue Vista Capital. They paid $6.5 million, or $130,000 per unit, for the community, although we do not know the 2020 sale price. Originally built in the 1960s but gutted, renovated and converted to a Community-Based Residential Facility (assisted living community) in 2008, the community was around 94% occupied at the time of the November 2015 sale. The operating margin also stood at 25% at that time,... Read More »
Senior Care Soars
What happened on November 9 was a bit of a shock, but in a good way. Senior care and REIT stocks soared after a year of forgettable foibles. The reason? Pfizer’s announcement that its COVID-19 vaccine was more than 90% effective, and that it could be available very soon, combined with the apparent end of the presidential election with Joe Biden the victor. We believe it was the end of the uncertainty on both accounts that pushed the market up. For those not paying attention, the Dow Jones Industrial Average at one point during the day hit a record high of 29,933, up 5.68% from the previous close. It ended the day up 2.95%. But it was the senior care market and its related REITs... Read More »
Walker & Dunlop Arranges Montana SNF Sale
Walker & Dunlop announced its involvement in the sale of two skilled nursing facilities in Montana to CareTrust REIT. We recently covered the transaction, which represented CareTrust’s first since the pandemic began earlier this year. The facilities include Apple Rehab Cooney, an 80-bed facility located on the campus of the St. Peter’s Health Regional Medical Center in Helena, and Elkhorn Healthcare & Rehabilitation, a 70-bed facility in nearby Clancy. Eduro Healthcare took over operations. Using cash on hand, CareTrust paid around $16 million, or $106,700 per bed, for the facilities, inclusive of transaction costs. Tony Cassie and Sam Thompson of Walker & Dunlop... Read More »
CIBC Secures Cash-Out Refinance and Working Capital
Matthew Tyler and Neal Netzel of CIBC Bank USA closed a cash-out refinance of a 120-bed skilled nursing facility in eastern Kentucky. With an effective age of 20 years, the facility has been managed by a local operator for a number of years. Its historical occupancy hovered around 75%. Ownership obtained a $13.5 million loan, with a five-year term, on the real estate. In addition, CIBC arranged a $1.0 million revolving line of credit to support working capital needs. Read More »
Capital Senior Living Continues to Shrink
As many of you know, for several years we have been pressing Brookdale Senior Living to reduce its size further than what it has already accomplished. In the meantime, Capital Senior Living is getting smaller by the day, and while we understand why, we certainly hope Brookdale does not go down this somewhat extreme path in size (very doubtful). Cap Senior is now forecasting to be one-half the size it was two years ago, with 60 owned communities and eight managed. The leases will be gone. During the course of the third quarter, like other operators, Capital Senior Living has been improving its capital structure, shedding unprofitable leases, handing properties over... Read More »
Senior Living Investment Brokerage Handles Michigan Sale
Hands-off management led to a decline in occupancy at a senior care campus in Bay City, Michigan, and an ensuing sale was handled by Bradley Clousing, Ryan Saul and Joe Young of Senior Living Investment Brokerage. The campus consists of a 151-bed skilled nursing facility that was built in 1955 and completely renovated in 2007, and a 38-unit assisted living community added in 2001. The seller was retiring from the family business and exiting the industry after operating in it for more than 50 years. Regulatory changes, new competition in the market and the health of the remaining family member made operating the asset more difficult in recent years. As such, the SNF was facing occupancy... Read More »
Ventas Reports Third Quarter Results
Ventas reported its third quarter results, and despite average census dropping below 80% for the first time, it remained on firm financial footing thanks to both federal relief grants and earlier moves to bolster its liquidity. In fact, Ventas improved its cash NOI from $402 million in the second quarter of 2020 to $545 million in the third quarter. Much of the gain came from its triple-net portfolio and mostly as a result of the agreement made with Brookdale Senior Living to reduce the provider’s annual cash rent to $100 million in return for consideration of approximately $235 million (including $162 million in cash) up-front. All of the $235 million in consideration is being amortized... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
