People on the Move
Don Kelly, formerly of CapitalSource Healthcare Finance but more recently a Senior Managing Director at MONTICELLOAM, has joined Locust Point Capital as Managing Director. He will be responsible for loan originations and structuring at the asset management firm, which focuses on direct lending to the lower middle market in seniors housing and care. Mr. Kelly has experience originating, structuring and underwriting approximately $5 billion in transactions across his career, which should help in his goal of expanding Locust Point’s market reach and product offerings in the lending market. Mr. Kelly also has operating company experience, formerly working as an Executive Vice President at... Read More »
Meridian Capital Group’s End of Summer Sprint
Meridian Capital Group’s seniors housing and healthcare team is sprinting to the end of summer, with over $160 million in transactions closed in the last two weeks alone. September has been noticeably slower than even previous months, so to get that amount of transaction volume across the finish line is impressive. Managing Directors Ari Adlerstein and Ari Dobkin, along with Senior Vice President Josh Simpson, first arranged a $47.8 million loan from a finance company, plus a $3 million A/R line to refinance two skilled nursing facilities with 328 total beds in New Jersey. The trio also secured a $30.2 million acquisition loan to fund the purchase of a CCRC in Florida... Read More »
CiminoCare Adds California Community
A Stockton, California senior living community with a long history in the area has a new owner, and a new operator. Originally built in 1972, this property consists of 86 units of assisted living, a coffee shop, beauty salon, a parlor with a piano, restaurant-style dining and memorial rose garden. Novellus Living Group, a company focused on acquiring underperforming assisted living communities, renovating and repositioning them, was revealed as the new owner. Last year, Novellus acquired a 45-unit assisted living community in Modesto, California, for $4.5 million, or $100,000 per unit. The 30-year-old community sold at over an 8.5% cap rate, leaving some room for improvement... Read More »
The Labor Problem That Does Not Go Away
The pandemic should provide the reason, and time, for providers to re-think labor. When the weekly unemployment filings broke records last spring, there were some people who thought that with millions of workers newly unemployed, the labor crisis afflicting senior care might ease. As far as we have heard, it has not. An unintended consequence of this pandemic is that with census nationally dropping by 1,000 basis points, or more, staffing needs have dropped as well. Fewer people to feed and care for means not as much staff needed, at least in theory. So far, we have not heard of unemployed workers lining up to work in nursing homes or assisted living communities. Most likely the two... Read More »
Regions Bank Closes Two More Deals
The summer activity continued for Regions Bank. Earlier this week, we covered the bank’s refinance of two construction loans for a senior living community in the Cincinnati, Ohio area and for a community in Lorton, Virginia. Chris Honn also closed a non-recourse balance sheet loan for an assisted living/memory care community in Merced, California. Built in the late 1990s, the community features 84 units and was stabilized under the management of a large California-based operator. The owner, a large privately owned developer/operator based in San Diego and a new customer for Regions Bank, obtained an $8.33 million loan to repay existing bank debt and provide some... Read More »
PGIM Real Estate Refinances Virginia Memory Care
PGIM Real Estate closed the refinance of a memory care community in Forest, Virginia (Lynchburg MSA), the second it has closed for the client this year. Runk & Pratt built the property in 1999 to include 76 units and has added a number of unique features, such as a multi-sensory room that provides soothing and engage stimuli to its residents. There are also three enclosed courtyards and a greenhouse, along with on-site therapy. Occupancy was around 89%. Christopher Fenton and Catherine Eby of PGIM Real Estate facilitated the $13.2 million HUD financing, which came with a 35-year term and amortization. The loan replaces HUD debt that had a higher interest... Read More »
REIT Finds New Tenant for Ohio Skilled Nursing Portfolio
It’s not the easiest time for a transition in operators, but Michael Segal, Connor Doherty and Ryan Kelly of Blueprint Healthcare Real Estate Advisors facilitated the change across a portfolio of four skilled nursing facilities in Ohio. Owned by a public REIT, three of the facilities are located in the Columbus and Cincinnati MSAs, while the fourth is in the northwest part of the state near Indiana. Totaling 613 licensed beds, 502 of which are dually certified and 111 are residential care, they historically operated near stabilized levels, but revenue and census declined as a result of the pandemic. That put pressure of the lease coverage, and the prior operator expressed a... Read More »
Lancaster Pollard Announces Promotions, And A Deal
Lancaster Pollard Mortgage Company, a division of ORIX Real Estate Capital, announced several promotions in its seniors housing and healthcare team. These follow other changes at the top, with Aaron Beck being the chief production offer and East team leader in the Spring, and Casey Moore, Doug Harper and Quintin Harris also expanding their leadership roles, with Messrs. Moore and Harper leading the West, and Mr. Harris leading the Midwest. Michael Blackwell joined the team and will be responsible for originating new business and maintaining existing client relationships in the Northeast. He originally came to Lancaster Pollard as an associate in 2016 and is currently a vice... Read More »
The “Forgotten Middle” Returns
As occupancy levels continue to drop or remain subdued because of the pandemic, there seems to be less talk about the so-called “forgotten middle,” those seniors who can’t afford, but may need or want, some sort of senior living option. The NIC presented the findings of its study on this topic last year, and it created a lot of excitement. But the focus has shifted to dealing with declining census and profits. Mary Ann Donaghy, formerly the Chief Marketing Officer at NIC and now an independent consultant, recently posted an interesting article on LinkedIn about the topic, specifically how to move from theory to reality in developing a real plan for dealing with this... Read More »
Regions Bank’s Summer Bonanza
It looks like the Regions Bank team did not take much time off this summer, closing a series of loans across the country for senior living clients, including financing the development of a senior living community in a Seattle suburb last month. We’ll start with a couple of loans that took out construction debt. First, to refinance a brand-new, two-story senior living community in a Cincinnati, Ohio suburb, Jack Boulder and Chris Honn arranged a $31.4 million bridge loan. The community features 28 independent living, 83 assisted living and 40 memory care units. It is owned by a joint venture that is primarily sponsored by a private developer/owner/operator based in the Midwest, and an... Read More »Schedule a demo
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