Gardner Capital Invests In Midwest Seniors Housing Properties
Family-owned private equity firm Gardner Capital made a couple of investments in the senior apartment market, both in the Midwest. First, the company and partner Housing Authority of Elgin developed a brand-new community in West Dundee, Illinois, with 61 units set aside for low-income seniors. And according to Gardner Capital, this is just the first of several projects planned for the Chicago area. The community features one-bedroom units with 735 square feet and two-bedroom units with 892 square feet. Omaha, Nebraska-based Seldin Company will operate it, adding the property to its large presence in the central United States, including in Nebraska, Iowa, Illinois, Missouri, Kansas,... Read More »
Bellwether Enterprise Secures Freddie Mac Financing
Bellwether Enterprise Real Estate Capital closed a cash-out refinance for a large active adult community in Placentia, California. Owned and operated by Mesa Management, Emerald Isle features a total of 422 units, with both one- and two-bedroom options ranging in size from 588 to 1,128 square feet. There are also numerous amenities, from a fitness center and clubhouse to a putting green and heated swimming pool/spa. It was built in 2004. Working through Freddie Mac, Bellwether Enterprise’s Jason Krupoff originated $82.487 million in financing for the property. The 10-year loan includes five years of interest only at an interest rate below 3% and was underwritten at a 60% loan-to-value... Read More »
Recent Senior Care M&A Deals, Week Ending August 14, 2020
There were a few deals announced this week in the seniors housing and care market, check them out here! Long-Term Care AcquirerTargetPrice New York-based owner/operatorThe Shoreline of ClintonN/A Summit LTC ManagementSouth Place Rehabilitation & Skilled NursingN/A ValStone PartnersHermitage Gardens of Oxford & Hermitage Gardens of SouthavenN/A Michigan-based companyRidgeCrest Health... Read More »
Private Equity And Nursing Homes
There have been a lot of stories in the media about private equity and nursing homes, often by The New York Times, which seems to have a “thing” about the nursing home industry. All that we have seen has been negative in varying degrees, mostly dealing with cuts in staffing, declining quality of care and increased leverage. But a recent study by three academics from UCLA and Duke took a very detailed look at what happened to staffing, specifically nursing, when PE firms bought nursing homes. The study also tried to pinpoint what caused PE firms to change the level of staffing, as well as which staff jobs went up or down. The study covered 77 PE acquisitions covering... Read More »
Summit LTC Management Acquires East Texas SNF
The Blueprint Healthcare Real Estate Advisors team worked together to sell a 112-bed skilled nursing facility located near the University of Texas Health, East Texas campus in Athens, Texas. Built in 1987, the facility has mostly semi-private rooms. It historically operated well while enrolled in QIPP, but a new local competitor put downward pressure on the facility’s quality mix, and surely on its operating margins too. The undisclosed REIT seller decided to divest, and after five competitive offers, Summit LTC Management, a Fort Worth-based owner/operator, was selected as the buyer. It has an existing presence in East Texas, which should help in the operational turnaround. The... Read More »
Monticello Funds Wisconsin Acquisition and Refinance
MONTICELLOAM, LLC (Monticello) and its affiliates recently structured first lien debt for a portfolio of three senior care facilities in Wisconsin. The purpose of the debt was two-fold, with a portion going towards the acquisition of an assisted living/skilled nursing property and the remaining amount refinancing two skilled nursing facilities. The portfolio averages around 42 years in age and totals 305 beds and units. Monticello provided $14.00 million in first lien debt, which came with a 10-year term. The buyer was an experienced owner and operator with a current portfolio of 4,969 licensed beds/units. Read More »
Cambridge Realty Capital Lowers Rate On 16 Facilities
Cambridge Realty Capital announced a slew of HUD loan modifications in the first half of 2020. The lender worked on behalf of borrowers with a combined 16 healthcare facilities that all had HUD mortgages. They are located in Illinois, California, Ohio, Texas, New Jersey and Iowa. In total, Cambridge funded over $200 million in loan modifications, resulting in a lower interest rate for its clients. This announcement comes a month after Cambridge closed a HUD refinance of a 115-bed skilled nursing facility in northeast Texas in the city of Longview. Built in the 1980s but well maintained, this facility has so far been spared from COVID-19. The New York-based owner decided to refinance... Read More »
Brookdale, Genesis Report Tough Quarters
Brookdale Senior Living and Genesis HealthCare, the two largest providers, were not spared from COVID’s devastation in the second quarter. The two largest providers in their respective sectors, Brookdale Senior Living in seniors housing and Genesis HealthCare in skilled nursing, did not escape COVID’s wrath. No one expected they would. Fortunately for Brookdale, they have negotiated most of their underwater leases, so that will lessen the economic pain. But consolidated occupancy fell 440 basis points from the first quarter to the second. As of July 31, occupancy was at 76.6%, 120 basis points below the June 30 level. And COVID is spreading in two of its largest states, Florida and... Read More »
Senior Living Investment Brokerage Sells Michigan Senior Care Campus
Ryan Saul, Joe Young and Brad Clousing of Senior Living Investment Brokerage successfully sold a senior care campus in Jackson, Michigan. Originally built in 2010, the property comprises 90 total units, split between 50 private skilled nursing beds and 40 assisted living units. Historically, it operated well with occupancy consistently around 95%. Census was impacted during the Michigan stay at home mandate, but it quickly recovered above 90% again. The campus also boasted a quality mix above 50%, making it an attractive acquisition prospect, we are sure. The seller was Trilogy Health Services, which owns and operates communities across Michigan, Indiana, Ohio and Kentucky. With an... Read More »
Diversified Healthcare Trust Divests Two Managed Communities
Diversified Healthcare Trust (DHC) divested a couple of its SHOP assets, both located in Mississippi and operated by Five Star Senior Living under the Hermitage Gardens name. Built around 2000 and renovated in 2005, the properties include a 57-unit assisted living community in Oxford and a 59-unit AL community in Southaven. DHC acquired them in 2006 for a combined $12.4 million, or $112,700 per unit, and at a 7.5% cap rate. The current purchase price is not known, but in DHC’s second quarter earnings report, the company mentioned selling two managed senior living properties and two MOBs subsequent to the quarter for a combined $5.197 million. An undisclosed private equity firm was the... Read More »Schedule a demo
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