Carnegie Capital Refinances Oklahoma SNF Portfolio
JD Stettin of Carnegie Capital structured the refinance of three skilled nursing facilities in south-central Oklahoma. Built on average 20 years ago, these facilities total 330 licensed beds in three different counties. There was a maturing loan from a large national bank on the portfolio, so in came Mr. Stettin to replace it on behalf of the local owner/operator. An Arkansas-based regional bank provided an $11.5 million loan with a five-year term. The interest rate came in below 4%, or 3.995% to be exact, and was fixed for the length of the term. That makes for a happy client, we imagine. Read More »
Capitol Seniors Housing Opens Community In Chicagoland
Capitol Seniors Housing opened a brand-new assisted living/memory care community in Chicago’s Highland Park neighborhood to be operated by Atria Senior Living. What’s the name for the new community? Appropriately, it’s Atria Highland Park. This property was designed by Richmond, Virginia-based Mosely Architects and Austin, Texas-based Studio Six 5, and features 72,000 total square feet in three stories. There are 86 units, 22 of which are in a separate memory care neighborhood that also features a salon. Other amenities across the community include a theater, art studio, fitness center and a wellness center offering health checkups and monitoring. That probably reduces the stress of not... Read More »
It’s Not As Bad As It Seems, And It Is Getting Better
We have been having a series of off-the-record conversations with CEOs in the senior living industry, and while most are a little cranky about the past six months, many are also becoming a little more optimistic and see the light at the end of the tunnel. That’s the good news. The bad news is that for most of them census remains at low levels they have never seen before. That is beginning to change as leads, tours and move-ins are now moving in an upward direction, especially in the Northeast which was hit first by the pandemic and recovered first as well. We have also been hearing that staffing is returning to more normal levels, with staffing costs for some companies... Read More »
What About the MOB M&A Market?
With seniors housing and care transactions slowing to a crawl in light of the COVID-19 pandemic, let’s check in on another healthcare real estate sector that has not seen the same decline. Medical office building (MOB) transactions have been flowing steadily throughout the third quarter, with 11 deals on the books so far according to our M&A database Deal Search Online. Most deals are focused on facilities in the Southeastern region of the United States, such as Alabama, North and South Carolina, and Georgia, and the buyers are a mix of REITs, private real estate investment firms, and developers. So far in the third quarter, over 376,000 square feet of MOBs have been sold, with... Read More »
Paragon Mortgage Corp. Refinances California SNF
Phoenix, Arizona-based Paragon Mortgage Corp. arranged the refinance of a southern California skilled nursing facility. Located in North Hollywood within a three-mile radius of both Pacifica Hospital of the Valley and Kaiser Permanente Medical Center, the facility consists of 128 beds in a single story. It is affiliated with Kaiser Permanente and provides skilled nursing and rehabilitative services to both pediatric and adult patients, as well as respiratory therapy care, speech, occupational and physical therapy, and other services. The owner, Rancho Santa Fe, California-based Darbun Enterprises Inc., obtained a $16.3 million HUD loan to refinance the facility. The loan came with a... Read More »
Recent Senior Care M&A Deals, Week Ending August 28, 2020
The senior care M&A market slowed a bit later in August, but a few deals did get announced. Check them out below. Long-Term Care AcquirerTargetPrice Northern Horizon CapitalCare home in Denmark$35.4 million Orlando Neighborhood Improvement CorporationBaptist TerraceN/A Private owner/operatorAssisted living/memory care community in Cleveland,... Read More »
Death By or With COVID
We are sure every provider is sick and tired of hearing about how many residents have died of COVID-19 in a nursing home or assisted living community. The problem is that the classification may be all wrong. Unfortunately, there may be a financial reason for such classifications, as in more reimbursement, or more governmental aid. And for those who can profit from making this pandemic seem worse than it is (yes, they do exist), piling up the number of COVID deaths helps to make their case. It has certainly helped the mainstream media and their advertising dollars. But here is the problem, at least as it relates to the deaths in assisted living, memory care and nursing homes.... Read More »
Merrill Commercial Real Estate Sells Memory Care Community Out of Receivership
Tyler Merrill of Merrill Commercial Real Estate took an Oregon memory care community that was in receivership and sold it to a group of individual investors new to the industry. To take on the turnaround, that buyer group hired a Northwest-based operator to manage the community. It’s not an easy time for that, to say the least, but with a purchase price of $3 million, or $54,500 per unit, there is certainty some wiggle room to add value. Built in 1998, this 55-unit memory care community is located in Coos Bay on the central Oregon coast. Its previous owner originally acquired the community as part of a four-property portfolio in 2008, and Mr. Merrill was brought in to sell all four in... Read More »
M&T Realty Arranges HUD Loan
The HUD market seems to be the steadiest in the senior care lending world since the onset of COVID-19, after a few hiccups and delays earlier this year. Joining the activity, M&T Realty Capital Corporation arranged a HUD refinance for an assisted living community in Spokane, Washington. The non-recourse loan totaled $13.83 million and came with a 30-year, fully amortizing term. Plus, M&T secured an interest rate well below 2.75%. Who wouldn’t take that? Originally built in the 1940s with an addition in the early 1980s and renovations in the 2000s, the community features 212 units of independent living and assisted living in five interconnected buildings. Located adjacent to... Read More »
Lancaster Pollard Refinances Minnesota Community
Working on behalf of a repeat customer, Lancaster Pollard Mortgage Company secured a HUD loan for a 138-unit assisted living/memory care community in Chaska, Minnesota (Minneapolis MSA). Developed by Trident Development and operated by the borrower, Tealwood Senior Living, which manages over 38 skilled nursing and assisted living facilities in Minnesota and Wisconsin, the property was originally developed in 2015. It was funded in part by Tax Increment Financing from the Chaska Economic Development Authority. The property consists of two buildings connected by both a ground-level breezeway and upper level hallways. There are 66 assisted living “light” units that are certified for... Read More »Schedule a demo
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