HJ Sims Secures Financing For CCRC Expansion
We mentioned last week that the lending market for not-for-profit CCRCs has been quite active, particularly to fund expansion projects, and another one was announced by HJ Sims. Sims raised $38.18 million for Presbyterian Villages of Michigan (PVM), a Michigan-based not-for-profit that has been operating since 1945. Sims’ relationship with PVM began in 2015 when they underwrote a bond issue and then continued to provide advisory services. In 2002, PVM acquired land adjacent to its Village of East Harbor campus for an expansion project. Sixteen years later, they opened a new health and wellness center. The current financing by HJ Sims will finance the... Read More »
“Lument” Lighting Up The Senior Care Lending World
The combined firms of Hunt Real Estate Capital, RED Capital Group and Lancaster Pollard are moving forward together under one brand name: Lument. According to ORIX Real Estate Capital’s CEO James Flynn, the name was chosen for its associations with light and energy, emphasizing the combined company’s expertise, products and resources along with its drive to guide its clients to successful closings. The name change also follows a period of organizational restructuring among the three legacy companies, process streamlining and investment in new technology following the company merger in April 2020. Now, with the integration complete and the scale of ORIX’s balance... Read More »
Getting Ahead of Labor
The pandemic has riled operations at seniors housing communities and skilled nursing facilities across the country, and the long-term effects are still somewhat unknown. But one issue that was top of mind for many operators before COVID and will still be for years to come is labor. There are several facets to the issue too, from finding and attracting skilled labor to retaining staff to paying wages that are increasing every year. The pandemic has sent the unemployment rate straight up, but how many of those newly unemployed are really qualified to work in a senior care facility? Or want to. Probably very few. And retaining staff not adequately trained or prepared for the work is a hard... Read More »
Blueprint Handles Two East Coast Sales
Blueprint Healthcare Real Estate Advisors handled a couple of sales on opposite ends of the East Coast. First, in Connecticut, Steve Thomes and Chris Hyldahl sold two skilled nursing facilities that were acquired by a private investment group based in New York City as part of a 10-SNF portfolio in late 2017. Combining for 197 licensed beds, one facility is located in the Hartford MSA, and the other is in Fairfield County near the New York border. Older facilities, they were occupied in the mid-70s when the marketing process started in 2019, and it’s fair to say the pandemic and ensuing lockdowns took a further toll on census. Revenues also at the time of marketing were approximately $16... Read More »
The Prestige Group Sells Vacant Personal Care Home in Pennsylvania
Jim Baranello of The Prestige Group had an uphill battle marketing for sale a vacant personal care facility in the northeast area of Philadelphia, Pennsylvania during the pandemic, but he got the deal done. Owned by a family for nearly 20 years, the 35-bed facility was originally built in 1910 but converted to personal care in the last 20 years. Set in the Tacony section of Philadelphia, it features 15 units and five bathrooms in three stories, with a full commercial kitchen. The facility was inherited by a second generation who did not want to continue operating it and who chose to shut it down in 2019. Positioned for a buyer to either continue operating the building for personal care... Read More »
CCRC Bond Financing Rocks This Year
A week does not go by without another announcement about either a refinance of a not-for-profit CCRC or a new financing with the proceeds being used to expand or renovate, and even new, ground-up CCRC developments. Expand, during the worst pandemic in 100 years when seniors housing occupancy is plummeting? That’s what we said. In our first transaction, Cain Brothers had been working with Whitestone: A Masonic and Eastern Community since 2007, when several areas of need were identified to make the community more competitive. It opened its doors in 1913 and is the oldest CCRC in North Carolina. It has been managed by Life Care Services, which together with Cain... Read More »
Labor Costs During The Pandemic
Rising labor costs during the pandemic are hurting the bottom line, but there are solutions. As you may have heard, we will be hosting a webcast next week on the labor problems affecting seniors housing and care, and we hope to provide you with some solutions. The panelists include the founder of Matchwell, a relatively new company whose goal is to rid every community of agency labor and overtime. Wouldn’t that be nice. Plus, we have someone from Benchmark Living which has some of the most innovative practices out there to keep and recruit new employees. Finally, the manager of a 105-unit community will explain how for 25 years she has kept annual turnover at just 20%, something most of... Read More »
Blueprint Closes Two Senior Care Deals
M&A is chugging along in the senior care market, at last, and two teams from Blueprint Healthcare Real Estate Advisors handled a couple of transactions this week. First, in Ohio, Connor Doherty, Brian Payant and Ryan Kelly advised the estate and its advisory board in the sale of two senior care assets in the Cincinnati MSA. The campuses consist of 400 dually certified skilled nursing beds and 232 seniors housing units. Both also brought in positive cash flow. A New York-based private equity group with a strong presence in the local market emerged from the bidding process as the buyer, paying a price per bed that was high for the state. The deal brings Blueprint’s total 2020 Ohio... Read More »
CBRE Refinances Stabilizing Seniors Housing Portfolio
CBRE refinanced a portfolio of three seniors housing communities owned by a joint venture between LCS and Nuveen Real Estate, an affiliate of the investment management arm of TIAA. These communities feature a combination of assisted living and memory care, with 328 units in total. Developed by a not-for-profit in 2017 and 2018, they were acquired by the joint venture in 2018 as part of a seven-property portfolio that included four other stabilized communities around the Louisville and Indianapolis MSAs totaling 360 units of assisted living and memory care. The deal represented one of the first large-scale investments in the joint venture’s $300 million capital raise, which CBRE... Read More »
St. Louis-Area Senior Living Community Sells
A St. Louis, Missouri-based developer/owner/operator did not have to go far for its latest acquisition, picking up a large senior living community in a nearby suburb. Built in 1986, the private pay community features 116 independent living and 63 assisted living units. It has been renovated twice since opening. Occupancy was in the mid-70s, which dipped slightly during the pandemic, but in-place cash flow was strong. Incorporating the property into its regional footprint, the buyer is planning a substantial, multi-million-dollar capital improvement project. Newmark Knight Frank handled the deal on behalf of the seller and also procured a lender in Regions Bank to provide... Read More »Schedule a demo
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