Evans Senior Investments Facilitates Sale in West Virginia
Hamister Group, a Buffalo, New York-based owner/operator, entered the West Virginia seniors housing market with the acquisition of a 65-unit assisted living/memory care community located outside of Charleston in the town of Dunbar. Originally built in 1990 but with expansions in 1999, 2003 and 2007, community has 75 functional beds and 85 licensed beds, with a 100% private pay census. At the time of marketing, occupancy averaged 95% based on functional beds, but the pandemic caused census to plummet to 69%. However, at the time of the sale, occupancy had rebounded to 87%. In the trailing-12-month period before the sale, the community operated at a roughly 10% margin on more... Read More »
Diversicare Healthcare Services Acquired by DAC Acquisition LLC
Several months after the deal was first announced, Diversicare Healthcare Services has now been acquired (through a merger) by DAC Acquisition LLC, a privately held Delaware limited liability company managed by Ephram Lahasky. Mr. Lahasky has significant affiliations with in excess of 100 owned and/or leased skilled nursing and similar facilities in over 20 states. Per the deal, Diversicare’s stockholders will receive an amount of cash equal to $10.10 per share of Diversicare common stock, which represents a premium of approximately 256% from Diversicare’s closing share price of $2.84 on August 19, the last trading day prior to... Read More »
Five Star Senior Living Exits the SNF Business
Five Star Senior Living has completed its planned exit from the skilled nursing business by transitioning the operations of 107 properties owned by Diversified Healthcare Trust. Originally, there were 108 properties in the transition, but the parties decided to close one. Five Star will also work with Diversified to close one more property in Delaware. The RMR Group, an alternative asset management company, provides management services to both Diversified and Five Star. The amended management arrangement with Diversified, first announced this April, will leave Five Star with 140 senior living communities (120 of which are owned by Diversified) and approximately 20,000 units under... Read More »
New York CCRC Development Receives Financing
A major CCRC project being built on the campus of SUNY Purchase College in Purchase, New York just got a major boost after receiving a $398.1 million bond issue arranged by HJ Sims. The tax-exempt and taxable bonds were closed for Purchase Senior Learning Community, Inc., which was formed to develop the community with 68 assisted living/memory care beds and 220 independent living units and villas. Of those IL units, 20% will be reserved for local residents earning no more than 80% of the area’s median income. Integrated into the community will be a “learning commons” consisting of classrooms, studios, gathering and performance spaces utilized by the residents but also students for... Read More »
Legacy Senior Living Acquires Tennesee Community
Legacy Senior Living announced its acquisition of a 58-unit assisted living/memory care community in Hendersonville, Tennessee for $5 million, or $86,000 per unit. The deal brings Cleveland-based Legacy’s portfolio to 16 senior living communities across the eastern United States. We learned about the sale earlier this month when Evans Senior Investments announced its role in brokering the deal, although the private equity seller has still not been disclosed. Built in 2000, the community was just 62% occupied at the time of market and losing over $900,000 in NOI on revenues of $1.525 million. Once it turns operations around, Legacy will then expand the community into the excess land... Read More »
‘Tis The Season To Borrow
So, inflation is at a 30-year high, but interest rates have not increased much. It is actually all relative since they are much higher than when the 10-year Treasury hit a low of 0.54% in March 2020. But seriously, that was a bit silly, just like oil at a negative price per barrel. If the inflation numbers stay high for a while, and end up not being “transitory,” something we heard several months ago but not so much lately, at some point that has to get embedded into interest rates. Which leads us to conclude that now is not a bad time to shore up your capital structure and borrow or refinance before rates rise. Two REITs are taking advantage of the market conditions, both with... Read More »
VIUM Capital Finances Two Transactions
VIUM Capital has provided financing for two transactions spanning seven total properties. The first deal involved the acquisition of a six-property portfolio consisting of five skilled nursing facilities and one assisted living community. The properties, all located in southeast Michigan, were purchased for $64.44 million and received $58 million of bridge-to-HUD financing. Funds were provided for acquisition costs and capex being used to improve building aesthetics, add a short-term rehab in one of the buildings and other specialty units. The financing includes a debt structure of $54 million of A notes and $4 million of B notes. The second financing was for the purchase of Bria of... Read More »
SLIB Facilitates AL Sale in Nevada
Senior Living Investment Brokerage’s Vince Viverito, Jason Punzel and Brad Goodsell have facilitated the $13.9 million sale of an assisted living and memory care community in Gardnerville, Nevada. Built in 1997, the 65-unit community, priced per bed at $214,615, had annualized revenue of $3.39 million, an EBITDA of $1.04 million and a cap rate of 7.4%. Named Carson Valley, the community had a slight occupancy decrease in 2020 but eventually increased to 92%. The property is 40,610 square feet and sits on 2.54 acres. The buyer is a Western U.S.-based private equity firm and the seller was undisclosed. Read More »
Greystone Provides Refinancing For Atlanta Community
Greystone’s Senior Housing Capital Markets Team has provided refinancing for a 193-unit seniors housing community in Atlanta, Georgia. Matt Miller led the team, providing the financing on behalf of Harbert Seniors Housing Fund I, L.P. The transaction was closed with a large regional bank and has a three-year term. The property, managed by an experienced regional operator, includes independent living, assisted living, and memory care units across two construction phases, the second of which was completed in late 2020. This community offers a range of independent living unit configurations, and features a heated pool, walking gardens, fitness center, salon & spa, library, theater,... Read More »60 Seconds with Steve Monroe: Big-Time CCRC Development
For those of you who know me, you know I have been a big fan of the CCRC model, and have been for decades. And for those of you who still think the entrance-fee CCRC model is dead, well, think again when you hear this. HJ Sims recently closed on what may be one of the largest tax-exempt bond financings for a single-site CCRC new development, if not the largest. The total bond issuance comes to $398 million, or just over $1.5 million per unit, with maturities ranging from four years to 35 years. The interest rates range from 2.875% to 4.625%. It is located in Westchester County, New York. The community will be situated on the campus of Purchase College, State University of New York. There... Read More »Schedule a demo
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