Grandbridge Finances Florida Assisted Living Sale
Earlier this year, we learned of the sale of an 89-unit assisted living/memory care community in Pensacola, Florida. Now, it has been revealed that Grandbridge Real Estate Capital’s Seniors Housing and Healthcare Finance Group arranged the acquisition financing for the deal. Previously owned by CNL Healthcare Properties II, the property was sold alongside a 92-unit AL/MC community in Tampa to Waypoint Residential for a combined $48.85 million, or about $270,000 per unit, at a roughly 5.5% cap rate. These were the last two properties owned by CNL II, whose shareholders had approved the company’s plan for dissolution in September 2019. Both communities were... Read More »
Engel Burman Opens 15th Long Island Community
The Bristal Assisted Living just opened its 20th seniors housing community, and 15th on Long Island alone. The property is located in Mount Sinai, adjacent to Port Jefferson, and features 76 assisted living units and 44 memory care units within the “Reflections” neighborhood. Engel Burman, the developer/owner, will also include a movie theater, card room and a fitness center. Programming will also include creative arts, physical fitness classes and educational seminars, among others. Residents will be able to choose from studio to two-bedroom options, with rents ranging from $5,200 a month to $8,400 per month. Plus, there will be a memory care component in... Read More »
Second Quarter Healthcare M&A Drops
The decline in second quarter healthcare M&A probably won’t surprise many of our readers. The second quarter was the first full quarter of healthcare M&A in the shadow of the COVID-19 pandemic, and deal making took a hit as a result, as shown in results from our Deal Search Online database. Compared with Q1:20, Q2:20 dropped 20%, with 322 transactions on the books. Compared with Q2:19 (486 transactions), deal volume in Q2:20 declined even further at 34%. Source: Health Care M&A, July 2020 Long-Term Care and Physician Medical Groups were among the hardest hit sectors, declining 40% and 50% in activity compared with Q1:20, respectively. Year-over-year, the difference... Read More »
What’s Wrong with Whistleblower Lawsuits
Consulate Health Care will have to defend itself again over a 2017 judgment. Three years ago, after a 22-day trial, a jury issued a $347.8 million judgment against Consulate Health Care, Florida’s largest nursing home chain. A year later it was overturned. Now, an Appeals court partially reversed the judgment, lowering it to $255 million. While a huge drop, it is still meaningless, because it will never be paid. Consulate was accused of upcoding therapy billing at a few of its nursing facilities. Except that at the time, these facilities were apparently operated by a different company that subsequently purchased Consulate and took on its name. I hate to say it,... Read More »
Seven-Property Portfolio Sold At Steep Discount
Some more information has come out on MedCore Partners’ off-market acquisition of seven senior living communities from Ventas, and it may preview how far values may fall in the wake of COVID-19. A release from Kong Capital, which partnered with MedCore to acquire the portfolio, shows that the purchase price negotiated with Ventas fell from the originally agreed upon $70 million to $52 million as a result of declining NOI and the new realities that come with owning senior care properties these days. The purchase comes to just under $90,000 per unit, and represents a 26% decline, certainly on the high end of people’s predictions for a valuation correction across the seniors housing industry.... Read More »
Meridian Capital Group Carries On With Large Transaction Volume
The last six weeks has been slow, to say the least, but Meridian Capital Group’s seniors housing and healthcare team closed over $470 million in transaction volume during that period. That’s an impressive figure considering the hurdles to get all parties involved across the finish line in the last several months. Well done to Ari Adlerstein, Ari Dobkin and Josh Simpson for getting the deals done. There were a number of acquisition financings, the largest being closed to support the purchase of nine skilled nursing facilities and 921 total beds in West Virginia and Pennsylvania. That loan came to $183.5 million and was provided by a finance company. Then, two New Jersey facilities... Read More »
HHC Finance’s Busy HUD Month
Summer vacation didn’t start at Housing & Healthcare Finance (HHC Finance), we suppose, as the firm closed seven HUD loans totaling $119 million in the month of June. The largest deal was a $61 million refinance of a 360-bed skilled nursing facility in New York. Built in the early-1970s but recently renovated, the facility was occupied in the mid-90s. HHC Finance followed that up with a $22 million HUD refinance of a 120-bed skilled nursing facility in Florida that was built in 2015 and occupied in the high-80s. Both loans were closed with interest rates in the mid-2s. That makes for some happy long-term clients. HHC Finance rounded out its June activity with five HUD loan... Read More »
Ziegler Secures Construction Financing for Michigan CCRC
A not-for-profit CCRC in Michigan is embarking on an independent living expansion and worked with the team at Ziegler to secure a bank bond financing to fund it. Located in the affluent suburb of East Grand Rapids, the CCRC was originally built in 1960 on a 20-acre campus. It currently consists of 170 entrance-fee independent living units, 20 rental IL units, 46 assisted living units, 35 memory care units and 29 skilled nursing beds. Recently, ownership purchased a medical office building on the northeast corner of the campus but has plans to demolish it and build 26 new independent living units with underground parking, communal areas on each floor and an outdoor patio/entertaining space.... Read More »
MedCore Partners Acquires Seniors Housing Portfolio
MedCore Partners and The National Realty Group announced their purchase of a seven-property senior living portfolio on the West Coast. The deal included five senior living communities in Washington State and two in California. Among the Washington properties were the 60-unit Birchview Memory Care in Sedro-Wooley, the 55-unit Discovery Memory Care in Sequim, The Sequoia in Olympia with 92 units, the 72-unit Cooks Hill Manor in Centralia and lastly, and the largest, The Village in Tacoma with 136 units. In California, there was Del Obispo Terrace in San Juan Capistrano with 91 units and the 76-unit Westminster Terrace in Westminster. Their operator,... Read More »
National Health Investors Secures Big Bank Financing
Utilizing its bank relationships, National Health Investors boosted its liquidity with a $100 million term loan provided by a syndicate of eight banks. The one-year loan came with an interest rate of 30-day LIBOR + 1.85%, with a 0.50% floor. NHI also has the right to extend the maturity date by another year. Wells Fargo Bank acted as the administrative agent, while KeyBank, Bank of Montreal and Regions Bank acted as the syndication agents. The documentation agents were Bank of America, Capital One and Goldman Sachs Bank, which arranged the eight-bank syndicate including Pinnacle National Bank. Total commitments... Read More »Schedule a demo
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