Capital Senior Living Reports, Again
After Capital Senior Living filed an 8-K recently talking about “going concern” issues, we have to admit we were a little nervous about the delayed first quarter earnings release. Let’s just say, it could have been worse. They included the “going concern” clause, which basically says the current conditions raise “substantial doubt about the company’s ability to continue as a going concern for the 12-month period following the issuance of its financial statements” for the first quarter of 2020. Well, after reading the financial statements, it seems like there is definitely room to “continue” for the next 12 months, given some of the steps it has taken. They will have... Read More »
MBK Senior Living Buys Orange County Community
California-based MBK Senior Living just acquired an assisted living/memory care community near its Orange County headquarters, with the Cushman & Wakefield team of Richard Swartz, Jay Wagner, Aaron Rosenzweig, Dan Baker and Bailey Nygard handling the deal. Originally built in 1999 with a $1.1 million renovation completed in 2019, the community features 48 units and 59 beds of assisted living and memory care. Since the capital improvements, it has since stabilized and experienced a competitive bidding process. The seller, a joint venture between Cadence Living and an institutional equity partner, previously acquired this community from the not-for-profit HumanGood in 2017. Back then,... Read More »
Synovus Bank Announces Series of Closings
Synovus Bank has not shied away from the lending market recently, closing five transactions and more than $115 million in commitments in the second quarter, so far. That follows 13 loans closed in the first quarter and more than $300 million in volume. It’s true that most of these transactions were largely worked out before COVID-19 really hit the country in March, but the parties still all had to agree on terms in the end. And the deals that were all but closed pre-COVID-19 had little to no changes to the final terms. April and May’s activity consisted of two construction loans, two acquisition loans and one refinance of a matured Fannie Mae loan that also included funds for some... Read More »
Berkadia Arranges Supplemental HUD Financing
Berkadia’s Ed Williams secured supplemental financing through HUD for a skilled nursing facility in Florida. Owned by an Indiana-based sponsor, the 165-bed facility was built in 2010 (relatively new for SNFs) with a mix of skilled nursing and assisted living beds. Occupancy was strong at 90%, and its owner wanted to build a new skilled nursing wing with 20 private units. So, they increased licensed bed capacity by 12 and plan on converting some semi-private units to private. To cover 90% of the project cost, Berkadia arranged a $5.08 million HUD supplemental loan that will run coterminous with the original HUD loan with a term of 30 years. The addition is expected to open this summer.... Read More »
Can Federal Funds Come Without Strings?
Can the seniors housing sector expect to receive federal funds during the pandemic without some strings attached, like regulations? As the health care industry tries to deal with the rising costs of the coronavirus pandemic, the funds available may get tighter and tighter. So far, it has been hospitals and nursing facilities that have received much-needed federal aid. Nursing facilities have been given direct daily rate increases to deal with the rising costs of PPE and labor. The private-pay seniors housing sector, however, has been left out, so far. It has not been without a major effort to obtain federal funds to help with the sector’s own rising costs. Testing kits for all staff and... Read More »
Meridian Capital Group’s Active Spring
Meridian Capital Group has hit a rich vein of activity, closing more than $300 million in transaction volume in the last month. The deals were arranged for 26 skilled nursing and assisted living properties across six states, bringing the seniors housing and healthcare team’s year-to-date total to more than $1 billion in financing. There were a couple of acquisition loans, starting with $44 million arranged for the purchase of two skilled nursing facilities and 272 beds in Maryland. For the same borrower, Meridian also closed a $31 million loan and an $8.25 million A/R line to acquire three additional skilled nursing facilities and 266 beds. One finance company provided both loans, and the... Read More »
CBRE Secures Acquisition Financing For HJ Sims/Voralto Living Purchase
The CBRE National Senior Housing team arranged acquisition financing for a North Texas assisted living/memory care community. A joint venture between HJ Sims and Voralto Living was the buyer, obtaining a four-year, floating-rate loan with 24 months of interest only from a national bank. Featuring 60 units, the community was a newer vintage and will join Voralto’s six other communities in Texas, and one in Georgia. Aron Will, Austin Sacco and Adam Mincberg handled the transaction for CBRE. It’s been a busy year already for CBRE’s Senior Housing Debt and Structured Finance team, which has closed over $515 million in debt and equity originations across 15 separate transactions. In the months... Read More »
Helios Healthcare Advisors Heads to Houston For HUD Deal
Helios Healthcare Advisors successfully closed a HUD refinance of a 124-bed skilled nursing facility in the Houston, Texas metro area. Recently built in 2015, the facility was placed on the SFF list soon after opening. As soon as the developer/landlord brought in a new operator, things turned around, and the facility was quickly stabilized, cash flowing and occupancy in the 90s. It graduated from the SFF list, but as of closing the facility still maintained a one-star rating from CMS, which we imagine will soon rise. Working with HUD, Bill Janis and Mario Wilson of Helios structured an $8.5 million loan with a 35-year term and fixed interest rate below 3%. That makes for a happy borrower,... Read More »
Love Funding Takes Out Bridge Loan
Eric Forguson of Love Funding helped the owner of a senior care campus in Arnold, Missouri (St. Louis MSA) take out bridge debt on the property and replace it with a $12.9 million HUD refinance. Built in phases over the last 30 years, most recently adding a 52-unit assisted living building in 2019, the community features a mix of independent living, assisted living, memory care and skilled nursing services, with 202 units/beds total. Its operations were strong, and it produced stabilized cash flow over a three-year period. Mr. Forguson had originally secured a short-term bridge loan in April from Love Funding’s parent company, Midland States Bank. More than half of the loan’s proceeds... Read More »
CBRE Returns to Harleysville for Supplemental Freddie Mac Financing
Fresh off their closing of a portfolio financing for three California senior living communities owned by Carlton Senior Living, the CBRE team of Aron Will, Austin Sacco and Tim Root has closed another transaction, this time across the country in Harleysville, Pennsylvania. Mr. Will was already familiar with this property, having funded its 2016 acquisition with a $39.9 million Freddie Mac financing on behalf of the buyer, Green Courte Partners (GCP). Built in two phases in 2006 (151 units) and 2014 (125 units), the independent living community filled up quickly and has performed well since then. It was originally operated by Heritage Senior Living, then by GCP’s wholly owned... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
