Cain Brothers Manages California Bond Issuance
Cain Brothers served as the sole manager in the public issuance of $37.275 million of taxable, fixed-rate revenue bonds. Not-for-profit Los Angeles Jewish Home for the Aging, which programs all levels of senior care from short-term rehab to CCRCs to PACE and in-home care, was the recipient of the financing, which will advance refund the organization’s Series 2014A bonds. Those previous bonds were about two years from the call date, but they featured a higher interest rate, so a refinance in this low-rate environment made sense. The current bonds are insured by Cal-Mortgage. This was actually the third refinance completed for the sponsor in the last eighteen months, giving them more funds... Read More »
Digging Out
Cases of COVID-19 are rising across the country, but providers are better prepared than ever to take care of our elderly. The coronavirus pandemic is spreading, and any notion of a vaccine by the end of the year has faded. Yet, even though we take care of the most vulnerable population, the senior care acquisition market seems to be stabilizing. More deals have been closing this month than in the previous several months. But what does this mean? Third quarter earnings reports start coming tomorrow, and no doubt the occupancy numbers from the REITs will show continued deterioration to new record lows. This is the unfortunate reality we are all dealing with. And as average occupancy goes... Read More »
Senior Care Realty Sells Wisconsin Assisted Living Community
Mark Van Den Broeke of Senior Care Realty led the sale of an assisted living community in the Milwaukee area of Wisconsin with an unconventional history. That is because it was a former convent, but the 60-year old community has been operating as a 24-unit/27-bed assisted living community in South Milwaukee for many years. Built in 1960, it has recently been renovated, and occupancy was hovering around 100%. Operations were also solid, and the community made a profit on mostly government funding. The deal was actually fully negotiated and closed pre-COVID but just now has risen to the surface. The community sold for $1.305 million, or $54,400 per unit, at a 10.5% cap... Read More »
HJ Sims Refinances Two Senior Care Communities
HJ Sims closed a small loan for a seniors housing community in Kansas City, Missouri, and provided ownership with about $61,000 in annual debt service savings as a result. The 81-unit community caters to low-income seniors and was in need of some repairs. Also, real estate taxes had recently been imposed on the property, meaning that ownership had to buoy its finances (which was fixed by the Section 8 revenue) quickly in order to maintain a 1.05x debt service coverage that was required for not-for-profit borrowers. So, HJ Sims arranged a $3.237 million loan through HUD, which extended the community’s debt maturity by 12 years. With the funds, ownership was also able to replace... Read More »
KeyBank Secures Financing For Idaho Property
Thomas Development Co., a multifamily real estate developer based in Boise, Idaho, acquired a low-income senior apartment community in nearby Caldwell thanks to financing secured by Sarah Geis and Kevin Ruf of KeyBank Community Development Lending and Investment. The community is brand new and features 48 units comprised of 32 one-bedroom and 16 two-bedroom units. The two-story building also has a community room, exercise rooms, a library and management office. Forty-one of the apartments are restricted to residents earning 40% to 60% of the area median income, and the remaining seven units are market rate. Tomlinson Associates is the operator, and a manager will live on site. ... Read More »
Recent Senior Care M&A Deals, Week Ending October 27, 2020
In the last two weeks, we have seen a fair number of closings in the senior care market. Here are a few highlights. Long-Term Care AcquirerTargetPrice FairsteadFederation Davie Apartments$17.9 million Regional owner/operatorAssisted living community in WI$3.1 million CT-based owner/operator2 skilled nursing facilities in CTN/A Not disclosedSt John's Manor$1.3... Read More »
San Bernadino County Community Sells To In-Place Tenant
A competitive bidding process ended with the sale of an 83-unit assisted living/memory care community in Yucaipa, California (San Bernadino County). The winning bidder ended up being the existing tenant, which paid $13.9 million, or $167,500 per unit. Jim and Cindy Hazzard of JCH Senior Housing Investment Brokerage handled the transaction. Previously owned by a partnership, this community was built in 2003 and 2004 with 54 assisted living units, 29 memory care units and 130 total licensed beds on a 7.5-acre campus. The deal was supposed to close in March but was delayed by the pandemic, and in the end, there was no change in the purchase price. It certainly helped that operations were... Read More »
Senior Care Realty Handles Wisconsin Transaction
Bob Richards of Senior Care Realty represented a husband and wife team in their sale of a small assisted living community in Manitowoc, Wisconsin, thereby allowing them to retire from the business. This was their only senior care asset, which they developed in 2014 to feature 24 assisted living units and 26 beds, with a small portion of those set aside for memory care. Operations were strong with occupancy in the mid-90s and an operating margin of 31% on about $1.1 million of revenues, which did not drop off much as a result of the pandemic. With such consistent performance, there was also no movement on the final purchase price negotiated before COVID of $3.1 million, or $130,000 per... Read More »
MONTICELLOAM Funds Working Capital For Pennsylvania Property
MONTICELLOAM, LLC and its affiliates (Monticello) secured a $1.25 million working capital loan for the operating company of a large skilled nursing facility in Pennsylvania. The facility has 181 beds and is owned by an experienced owner/operator with nearly 3,600 licensed beds in its portfolio. It has grown its portfolio in the last several years thanks to acquisition financing provided by Monticello. Read More »
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 »Schedule a demo
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