Looking for Answers in the Lending Market: A Q&A with Alec Blanc of Monarch Advisors
To get a sense of what is going on in the capital markets in this immediate post-COVID-19 world, we turned to Alec Blanc of Monarch Advisors for his own thoughts. How has the lending environment changed from the beginning of the second quarter to now? Overall, there is less debt capital available than there was prior to the COVID-19 crisis. Many lenders have paused any lending activity in the sector. Notably, most of the mortgage bank bridge lending programs are on hold right now. Most of the remaining lenders have tightened their criteria for new client acquisition, leverage, and underwriting. We are also seeing some widening of credit spreads, probably in the neighborhood of 50 to... Read More »
Monticello Announces Another Portfolio Refinance
A large owner/operator of skilled nursing facilities just refinanced two of its facilities and acquired a third with the help of MONTICELLOAM, LLC (Monticello). Averaging nearly 50 years in age, the portfolio totals 312 beds in North Carolina and Kentucky. The acquired facility joins a portfolio of 8,752 total licensed beds, grown significantly in the last few years with financing provided by Monticello. This transaction featured $30 million in first lien debt with a 36-month term. The deal is similar to another that Monticello closed earlier this month that involved first lien debt provided to an experienced owner/operator for the acquisition of a couple of senior care... Read More »
Leo Brown Group Breaks Ground on Ohio Development
Seniors housing construction is still alive these days, as evidenced by the press releases we continue to get of projects breaking ground or even opening for business. We’re sure lease-up projections have changed, and a lot more developments were put on pause. We wonder if any design changes have been or will be implemented to account for potentially months (maybe years) of social distancing practices too. But we’re glad to see the activity. Leo Brown Group was one firm to announce the ground breaking of a new seniors housing development in Lebanon, Ohio (Cincinnati MSA). Featuring 146 units of independent living, assisted living and memory care, the community is located... Read More »
The Bifurcating Seniors Housing Market
The seniors housing and care acquisition market is bifurcating in more ways than one. We have all long talked about how the various seniors housing and care acquisition markets have bifurcated over the years. There is the vast difference between “A” quality and “B” quality assisted living communities. There are the old independent living communities vs. the new ones built with AL and MC included. There are the 40-year old SNFs compared with the sparkling new transitional care facilities. But as a result of this coronavirus pandemic and the economic shutdown, there appears to be another bifurcation that has developed. This one is based on outlook. There appears to be two... Read More »
Walker & Dunlop Closes Three HUD Deals
The lending market may be the slowest it has been since the Great Recession, but agency refinances continue to close. Walker & Dunlop announced a spate of them for senior care clients throughout the Midwest. Joshua Rosen led the origination team on the deals. First was a $14.895 million HUD refinance of a 156-bed skilled nursing facility in Aurora, Illinois. Located adjacent to a 136-bed supportive living community that sold earlier this year to Cascade Capital Group for $11 million, or $80,900 per unit, the facility is located about 40 miles west of downtown Chicago. Walker & Dunlop has been heavily involved with this senior care campus, having arranged the previous bridge debt... Read More »
Grandbridge’s Agency Financing Activity
Grandbridge Real Estate Capital announced a slew of agency financings across the country, all for seniors housing clients. First, Richard Thomas secured a $19.5 million refinance of an 84-unit assisted living/memory care community in Temecula, California. Highgate Senior Living built the community in 2018, and occupancy was already at 94% by the time of closing. They obtained a non-recourse loan from Freddie Mac that has a 10-year term and fixed interest rate. Mr. Thomas also worked with Thomas Wiedeman (based in Grandbridge’s Atlanta office) to arrange acquisition financing for an 89-unit assisted living/memory care community in Pensacola, Florida. Built in 2016 and now close to full... Read More »
HJ Sims Closes Three Transactions
After a COVID-19-related change, HJ Sims closed the refinance of a CCRC in Atlanta, Georgia, along with a couple other transactions. After refinancing in 2016 and obtaining a 2018 pre-development financing, the community recently broke ground on an expansion that will add 53 independent living residences scheduled to open in 2022. The $107 million project comprises 39 units in a five-story building and three buildings each with four or five units, all ranging between 1,700 and 3,200 square feet. It will bring the campus’ total number of units to 479, including independent living, assisted living and skilled nursing services. On behalf of the borrower, HJ Sims coordinated a request for... Read More »
The Media Still Gets It All Wrong
It must have been very frustrating for seniors housing operators, and especially assisted living providers, to have watched the news these past several weeks when they have all been thrown in with nursing facilities. Not to throw nursing homes under the bus, but most of the reported deaths in “long-term care facilities” have been in nursing facilities, not assisted living, even though the latter has had its unfortunate share. But the media rarely distinguishes between the two. So, one recent night, just to get our blood boiling, we tuned into Erin Burnett’s nightly CNN show. In the segment, a “nursing home director” explained how her facility in Oregon was able to stave off the... Read More »
Blueprint Wraps Up LTC Properties Portfolio Sale
Blueprint Healthcare Real Estate Advisors announced the final three phases of LTC Properties’ portfolio sale that sold to multiple buyers and closed from late-2019 to the first quarter of this year. It was revealed that seven skilled nursing facilities and about 550 beds in Iowa sold to a private owner/operator. Five of the facilities were located around Des Moines, and all seven offered upside to the new owner if they focused on certain geographical and management-level efficiencies. Humair Sabir and Jacob Gehl of Blueprint handled the deal, which closed in the first quarter. That same pair then sold three skilled nursing facilities in Colorado, with two located in the Denver MSA and one... Read More »
Walker & Dunlop Finances New Seniors Housing Development
A former community health center in Washington, D.C. is being redeveloped into a mixed-income senior apartments community thanks to HUD financing arranged by Rob Rotach of Walker & Dunlop. Originally built in 1925 as The Hebrew Home, the building served as a skilled nursing facility until 1968 when it was purchased by the District of Columbia to convert it to a community health center. However, it has stood vacant since 2009, and is now being redeveloped into an affordable senior apartment community with 185 total units, 88 of which will benefit from an adaptive reuse rehabilitation loan. It is also being designed to achieve a LEED certification. The project’s capital stack will... Read More »Schedule a demo
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