Occupancy Growth Slowing?
Historically, the third quarter is always the best quarter for census growth, and it has generally been a good quarter for most senior living providers. But September has seen a bit of a slowdown, which does not bode well for the fourth quarter. The summer jump in COVID cases may have something to do with it, but also adapting to an influx of new residents may not be easy with the labor shortages nationally. Capital Senior Living just announced that its September average occupancy increased by 20 basis points from the August average, reaching 81.4%. That is also a 610-basis point increase from the pandemic low of 75.3% in February. But it is a much smaller increase than the 80-basis point... Read More »
The HUD LEAN Rankings Are In
Another HUD fiscal year gone, and another set of familiar names rose to the top of LEAN loan production rankings. In terms of transactions closed, Greystone came in first place with 71 transactions, or more than double its next competitor. Not surprisingly, with that high level of activity, Greystone also had the highest dollar volume, with $888.88 million in total mortgages. This follows the firm’s first-place finish in HUD’s FY2020 as well, so they are on a hot streak. Housing & Healthcare Finance (HHC Finance) took second place for transactions closed and dollar volume, with 35 and $552.87 million, respectively. We got glimpses of HHC Finance’s activity throughout the year, and the... Read More »
Berkadia Secures HUD Financing for Three Communities
Berkadia announced three HUD financings for communities in Texas, Washington and Montana, totaling $20.6 million. The first loan, secured by Jay Healy, totaled $11.19 million and was arranged for a Texas-based not-for-profit organization to refinance its 128-unit Medicaid assisted living community in Texas. The loan carries a low-2% interest rate and ultimately retired the existing construction and mezzanine debt tied to the project. This income-restricted community was constructed in 2015, with occupancy hovering around 90% during the time of the underwriting. Ed Williams arranged the second transaction, which consisted of two loans. The first was $6.26 million refinance of a 36-bed... Read More »
Dwight Capital Reports Active Third Quarter
The capital markets certainly appear healthy again, and as such, Dwight Capital reported a very active third quarter with over $170 million in bridge and HUD loans for senior care properties. For the M&A comeback to really commence, lenders will need to be willing partners on those deals, and five of Dwight Capital’s recent closings went to fund acquisitions. The largest was a $23.25 million loan for a 272-bed skilled nursing facility in Peckville, Pennsylvania. Bradley Clousing and Toby Siefert of Senior Living Investment Brokerage handled the sale, procuring 12 offers on the facility and closing the deal at the start of September. Built in 1974, the facility is licensed for 272... Read More »
60 Seconds with Ben Swett: The Labor Problem Gets Worse
There’s no hiding from the labor shortage affecting senior care facilities. According to a September survey from the American Health Care Association and the National Center for Assisted Living, 99% of nursing homes and 96% of assisted living communities reported having either low-level, moderate-level or high-level staffing shortages. So only 1% and 4% of those facilities, respectively, are fully staffed? That is astounding. 28% of AL communities reported limiting new admissions because of the shortages, which is not good, but 58% of SNFs have had to turn away patients or referrals. Not only are they losing out on revenue, but they don’t have the opportunity to prove their worth in the... Read More »
LTC Properties Announces Third Quarter Financings
LTC Properties has announced a number of financings it originated over the third quarter totaling $46 million across four separate investments, including a unitranche loan, a senior loan, a mezzanine loan and a land loan. The investments are believed to generate a future annual interest income of approximately $3.5 million over a combined weighted average term of 3.2 years. First, a $27 million unitranche loan was originated for a regional operator to purchase a skilled nursing facility in Louisiana. The operator was given a loan term of three years with one 12-month extension option. The second loan was a $12.5 million senior loan for a regional operator to purchase an assisted... Read More »
Monarch Advisors Refinances Newly Built Louisiana Community
Alec Blanc of Monarch Advisors closed a refinance and recapitalization of a 108-unit assisted living/memory care community in southern Louisiana, just outside of Baton Rouge. After opening the community in 2018, the local owner/operator was first introduced to Monarch in March 2020. At the time, the property was not yet stable (around the mid-70% range), and occupancy did not improve much throughout 2020, which is not a surprise. However, lease-up quickened in early 2021, with occupancy reaching the mid-90% range, and the owner engaged Monarch to source approximately $18.5 million in senior debt to refinance the original construction loan and provide the sponsor with about $5.5 million in... Read More »
Two Illinois SNFs Receive HUD Financing
Harborview Capital Partners, a commercial real estate finance, equity and advisory firm, has arranged a $19.68 million loan through HUD to refinance two skilled nursing facilities totaling 205-beds located in Illinois. The non-recourse loan features a 35-year amortization. The transaction follows a $15.63 million HUD loan arranged for the refinance of a 192-bed assisted living facility in New York. Closed last month, the non-recourse loan featured a 35-year amortization and was originated by David Nussbaum, Director of Capital Markets. Read More »
Capital Funding Group Expands Seniors Housing Team
Capital Funding Group (CFG) has promoted Director Erik Howard to executive managing director of business and marketing in an effort to amplify their focus on the seniors housing and multifamily housing sectors. Throughout Mr. Howard’s 17-year tenure at CFG, he has been involved in the financing of over $7 billion in healthcare and multifamily assets. CFG has assembled a new team around these sectors in tandem with Mr. Howard’s promotion announcement, with industry-vet Ken Assiran set to lead the new seniors housing lending platform. Mr. Assiran has a 30-year background in financings and debt-structuring, and will continue to run CFG-affiliate Capital Health Group in addition to these new... Read More »
Gold Standard Grows South Florida Portfolio
Fort Lauderdale, Florida-based healthcare real estate investment group Gold Standard of Care acquired two seniors housing communities in the Sunshine State. The deal consisted of a West Palm Beach campus formerly known as Savannah Courts and Savannah Cove of the Palm Beaches. There are a combined 114 units of assisted living and 30 beds skilled nursing home purchased from National Health Investors. Gold Standard of Care paid $14 million, or $97,200 per bed/unit, with Greystone Capital providing the capital. Foley Lardner & Nelson Mullins Broad Cassel provided legal counsel to Gold Standard in the transaction. There will be $3 million in renovations made to the facilities. Read More »Schedule a demo
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