Jon Harder Gets Sentence Commuted
When was the last time anyone thought about Jon Harder, the founder and CEO of Sunwest Management who was sentenced to 15 years in prison for the “misuse of investment funds during the real estate crisis” of 2007 to 2009? Well, that is an understatement if we ever saw one. At its height, Sunwest was one of the largest senior living companies in the country. Back in the day, in the 2000s, when Mr. Harder was building his empire, overpaying for properties and then not properly managing them, people often wondered, “how is he doing it?” We heard from many brokers that the runner up bids were often 10% to 20% below what Sunwest was offering, not even close enough to ask anyone... Read More »
Senwell Sells Indiana “Green House” SNF
A month after closing an assisted living community sale in North Carolina, Senwell Senior Investment Brokerage switched gears to the skilled nursing market to sell a small facility in Goshen, Indiana. Opened in 2018 by an owner/operator, the facility consists of four homes in the “Green House” style, each with 12 private rooms. Each home has a family room, dining room and kitchen, with an open concept. That separation may have also played a role in reducing the risk of COVID-19 outbreaks too. And it clearly worked at this location, as it quickly filled up with mostly Medicare and private pay residents. The community also operated at a strong EBITDAR margin. Ben Bohland... Read More »
Capital Funding Group Announces 2020 Financing Total
When the figures were tallied, Capital Funding Group (CFG) had quite a successful 2020, financing in excess of $1.8 billion for its long-term care and assisted living clients across the country. Nearly double the $1 billion in closings in 2019, that total includes more than $1.8 billion across 51 bridge loans, 63 HUD loans and 23 lines of credit. In addition, CFG closed over $68.2 million in A/R lines of credit. During the tumultuous year, CFG also launched a new off-balance sheet financing program called CFG Captial Partners, which significantly expanded its bridge lending capability. On to 2021. Read More »
The Welltower Census Decline
Welltower’s seniors housing partners continue to suffer from census declines and operating costs. We do appreciate the transparency that Welltower has been providing investors, but boy does it provide a window onto what is happening. In its monthly update, Welltower informed us that it suffered its worst monthly census decline since May. December’s SHOP occupancy fell 100 basis points from November, compared with -70 basis points in November and -170 basis points in May. With the pandemic spreading, census dropped another 85 basis points to just 75.3% as of January 15. Not looking forward to everyone’s fourth quarter earnings calls. Move-ins were the lowest in six months, and... Read More »
Creativcap Closes Two Transactions
Scott Kavel of Creativcap announced a couple of financings that showed off the company’s range of services. First, Creativcap provided a $6.0 million mezzanine loan to support the construction of an assisted living/memory care community in Southern California. This was the fourth mezzanine loan closed for the regional developer client, all totaling nearly $35 million. The project in question will feature 153 total units, split between 99 assisted living and 54 memory care units on a 6.4-acre campus. Included on site will be a standalone marketing building with four model units, which should facilitate tours to potential residents without entering the main... Read More »
Giannini Closes Green Bay Sale
Ray Giannini and Aaron Thompson of Marcus & Millichap arranged the sale of a 50-unit assisted living/memory care community in Green Bay, Wisconsin. Contrary to many seniors housing communities today, this property was fully occupied, with a 100% private pay census at the time of closing. It also reported strong cash flow and was relatively new construction, having been built in phases from 2009 to 2019. The husband-and-wife seller had a lot to do with that strong performance, working diligently to maintain census and keep the community COVID-free throughout the year. They will be exiting the industry with this sale, which came at a price of $9.2 million, or $184,000 per unit. An... Read More »
HJ Sims Handles CCRC Bond Refinance
HJ Sims worked on behalf of The Bethel Methodist Home, a not-for-profit CCRC in Valhalla, New York, to refinance the property’s existing acquisition bonds. Opening in 2002 and offering a continuum of services from independent living to skilled nursing, the property experienced financial difficulty during the Great Recession (few entrance fee CCRCs escaped that fate) and ultimately filed for bankruptcy protection in 2015. That process resulted in a 2016 sale which was funded by both tax-exempt and taxable bonds privately placed with a single bond holder and coming with a high interest rate. New management turned around the operations, with occupancy rising from 57% to 91% just before the... Read More »
Grandbridge Arranges Two Seniors Housing Sales
Not long after making the move from Cushman & Wakefield to Grandbridge Real Estate Capital, the Tampa-based team of Allen McMurtry, Dave Kliewer and Jay Jordan announced a couple of seniors housing sales. First, they were tapped by the owner of an independent living/assisted living community near Springfield, Massachusetts to run a bankruptcy sale process. Built in the 1990s with 187 units of independent living and assisted living, including 129 cottages, the community was around 65% occupied. With a stalking horse bid of $9.0 million, the virtual live auction in late September 2020 resulted in more than 100 rounds of live bidding, with a final sale... Read More »
Colliers International Announces Florida Portfolio Deal
Damien and Ken Carriero of Colliers International kicked off their 2021 campaign with the sale of three assisted living communities totaling 180 units and 313 beds in Florida. Previously owned by Florida Seniors Properties, Inc., these communities are located in Port Richey, Casselberry and Zephyrhills, with an average occupancy of just 66%. Best Care Senior Living, LLC purchased the Port Richey property, while another ownership entity bought the other two communities. Colliers simultaneously closed the transactions on January 12. The combined purchase price was $13.7 million, or $76,100 per unit. Read More »
Plains Commercial Sells Oklahoma SNF
Daniel Morris, formerly of CBRE but now Founding Partner of Plains Commercial Real Estate in charge of seniors housing investment sales and leasing, has arranged the sale of a small skilled nursing facility in Fairland, Oklahoma. Featuring 29 beds, the facility was built in the mid-1960s with a small footprint of just about 6,400 square feet. It was operating just around breakeven, and occupancy was historically close to 70%. In addition, the operator was able to keep the facility COVID-free throughout the pandemic. This was the only facility of the long-term owner/operator seller, who bought the property in 2011 for $561,000, or $19,300 per bed, according... Read More »Schedule a demo
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