HHC Finance Closes Four HUD Deals
Housing & Healthcare Finance (HHC Finance) just announced four transactions from its HUD pipeline, totaling more than $44 million. The first deal was closed for a 120-bed skilled nursing facility in Ohio. Built in the early 1970s, it had occupancy in the low 90s and received a $10 million loan. Another skilled nursing facility in Ohio then obtained a $10.2 million loan from HHC Finance. That 93-bed facility was a little older (built in the mid-1960s) and was also well occupied around 95%. Next, HHC Finance closed a $10.5 million HUD loan for a 100-bed skilled nursing facility in Maryland. And finally, the firm closed its largest deal of the group for a 165-bed skilled nursing... Read More »
National Health Investors Beats the Odds
Sometimes the regular, tried and true sale/leaseback arrangements that used to be the mainstay of REIT financing still work. Just ask National Health Investors (NHI). After reading some of the depressing second quarter earnings releases, some more than others, it was a bit refreshing to see that NHI reported an 8% increase in lease income, an 11% increase in net income, an 8% increase in net income per share and a 7% increase in FFO per share, all year over year. And you thought the sky was falling. The REIT collected about 100% of second quarter’s contracted rents, and approximately 96.9% of rents due in July (so far). Have they granted some concessions? Sure, for the... Read More »
Colony Capital Sells Connecticut Memory Care Community
A 48-unit memory care community in Clinton, Connecticut (New Haven MSA) has a new, New York-based owner/operator, thanks to the work of Steve Thomes, Ben Firestone and Michael Segal of Blueprint Healthcare Real Estate Advisors. According to our M&A database Deal Search Online, this property previously sold in 2013 for $10.5 million, or $218,750 per unit. Previously owned by the private equity firm Westport Capital, it was operating at roughly a 30% margin on approximately $3.2 million of revenues. Occupancy was also close to 100%, with rents ranging from $5,000 to $6,000 per month. So, things were going well. Not only that, the 10-year old community was substantially renovated in... Read More »
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 »Schedule a demo
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